Understanding New Jersey’s Law Against the Unauthorized Practice of Law

New Jersey has strict laws prohibiting the unauthorized practice of law, with both criminal and civil penalties for violations. Section 2C:21-22 of the New Jersey Code of Criminal Justice makes it a crime to engage in the unauthorized practice of law, with escalating penalties based on the circumstances. This article provides an overview of the law, potential penalties, and things to know about unauthorized practice of law issues in New Jersey.

What is the Unauthorized Practice of Law in New Jersey?

New Jersey defines the unauthorized practice of law broadly. Section 2C:21-22 states that a person commits a 4th degree crime if they “knowingly engage in the unauthorized practice of law.” This applies to anyone who provides legal services or advice without being licensed to practice law in New Jersey.

Some examples of unauthorized practice include:

• Giving specific legal advice and opinions on another person’s legal rights or responsibilities
• Representing or speaking for another person in legal negotiations or proceedings
• Preparing legal documents like contracts, wills, trusts, court filings on behalf of another person

Simply stating general legal information without applying it to a specific person’s situation is not considered unauthorized practice. But anything involving individualized legal judgment or advice is restricted to licensed attorneys only.

Criminal Penalties for Unauthorized Practice of Law

Under 2C:21-22, unauthorized practice of law is a crime ranging from a 4th to 3rd degree offense. The baseline penalty for a 4th degree crime is up to 18 months imprisonment and a fine up to $10,000.

However, it becomes a more serious 3rd degree crime if any of the following circumstances apply, which can mean 3-5 years imprisonment and up to a $15,000 fine:

• The person falsely represents that they are licensed to practice law. This includes using titles like “lawyer” or “attorney at law.”
• The person derives a benefit from the unauthorized practice. This applies to any type of compensation received.
• The unauthorized practice causes injury to another person. This does not require proof of specific monetary damages.

The law also specifically states that the “in fact causes injury” provision establishes strict liability. This means a person can be guilty of a 3rd degree crime even if they did not intend to cause harm through their unauthorized practice.

Defenses and Exemptions to Unauthorized Practice Claims

There are some limited defenses and exemptions that can apply in unauthorized practice cases:

• Pro Se Representation – Representing yourself pro se in legal matters is not unauthorized practice. But assisting another person is still prohibited.
• Law Students – Law students can engage in limited practice in clinical programs as long as they meet requirements for Student Practice in New Jersey.
• Out-of-State Attorneys – Attorneys licensed in other states may practice in New Jersey if admitted pro hac vice for a specific case.
• Government Agency Work – Non-lawyers can represent government agencies if authorized by statute, regulation, or agency policy.
• Small Claims Court – Non-lawyer representatives are allowed in most small claims courts.

However, these defenses are limited and fact-specific. Anyone engaged in activities that may constitute unauthorized practice should consult directly with an attorney to assess if the defense applies.

How New Jersey Targets and Enforces Unauthorized Practice Violations

New Jersey aggressively prosecutes unauthorized practice of law violations through:

• Criminal Investigations – Complaints of unauthorized practice trigger criminal investigations by local prosecutors or the New Jersey Office of Attorney Ethics (OAE). OAE has broad subpoena power and routinely conducts in-depth investigations leading to criminal charges.
• Civil Injunction Lawsuits – The New Jersey Attorney General and County Prosecutors frequently file civil lawsuits seeking injunctions and penalties against unauthorized practice violations under the New Jersey Consumer Fraud Act.
• Ethics Complaints Against Lawyers – The OAE will discipline licensed New Jersey attorneys who assist or enable others in the unauthorized practice of law.

Given the broad definition of unauthorized practice and active enforcement, extreme caution is warranted any time non-lawyers want to provide individualized legal services and advice in New Jersey. Even inadvertent violations can trigger serious criminal penalties and civil liability.

Common Situations that Can Lead to Unauthorized Practice Issues

Some common situations that often raise unauthorized practice of law issues include:

• Legal Document Preparation Services – When non-lawyer companies like LegalZoom draft legal documents for customers, it risks crossing the line into individualized legal advice and preparation. New Jersey issued guidance restricting these services.
• Immigration Consultants – Advising immigrants on specific forms, rights, and remedies can constitute unauthorized practice. New Jersey criminally prosecutes immigration consultants engaged in unauthorized practice under Section 2C:21-31.
• Tax Prep Services – When tax preparers give advice on structuring assets or transactions to minimize taxes for a specific person or business, it can cross into unauthorized practice. New Jersey issued rules restricting this conduct by tax prep services.
• Debt Settlement Companies – Advising on whether to file bankruptcy or how to negotiate debt relief for a particular customer constitutes legal advice. New Jersey has filed lawsuits against debt relief companies for unauthorized practice.

Anyone considering activities that touch on individualized legal advice should consult with an attorney to assess if they are at risk of engaging in unauthorized practice of law in violation of Section 2C:21-22.