Reasons Counselors and Therapists Lose Licenses

By David Joel Miller.

Why do Counselors lose their license?

There are three main reasons counselors lose their licenses and a few minor ones. Frankly most Counselors who “lose” their license don’t actually lose it. Everything here about counselors also applies to psychotherapists, therapists, psychologists and related professions in most places.

Remember that as serious as these reasons are, most, almost all, counselors do this kind of work because they want to help people. The FEW that get their licenses revoked are just that – a very small number.

If a counselor or therapist is accused of committing a serious offence the licensing board investigates. Should the accusation turn out to be true the license board “revokes” the license. That revocation can then be “stayed” meaning the license is not gone yet but the counselor has to do certain things to get the license cleared.

One thing they have to do is pay back the licensing board for the cost of the investigation and any fines or fees. Second they have to go through classes or additional education. They will also need to work for a period of time under the supervision of another licensed counselor just like when they were an intern or trainee. The hardest part of all, is the requirement that they tell each and every client they are being supervised and by whom.

Sometimes the counselor will decide to give up or surrender the license rather than go through all this.

The three biggest reasons for revocation of a license are:

Sex with a client.

This is never OK. Forget all those stories about falling in love with the therapist or teacher. Most of the time this happens because both people are having problems and the relationship is never one of two equals. For someone who has a position of authority to become sexual, betrays the clients trust.

Frequently the counselor loses their license over this and then the relationship breaks up, creating two ruined lives. This has happened a lot with substance abuse clients and then the client relapses leaving the counselor out of work and in a relationship with a using addict.

In California we are required to have a copy of the book “Professional Therapy Never Includes Sex” with us whenever we counsel and give a copy to any client who says they had sex with a previous provider. This book is available free at the California Board of Behavioral Sciences website.

Most other states and countries have similar regulations. Check the web site for the agency that licenses counselors in your jurisdiction.

Being impaired.

This mostly means being arrested and often involves the use of drugs and alcohol. Since most counselors believe in recovery we like to see impaired professionals go for treatment. What is not good is for them to continue to see clients while using and drinking.

Counselors also get licenses revoked for committing crimes that result jail or prison time.

Dual relationships involving money.

The big dual relationship is number one – Sex with clients. But lots of counselors fall for number three also. Your therapist should not borrow money, get into a business deal or otherwise be involved in your finances other than to help you decide what to do. If they stand to make a buck on you for any reason other than the rate they charge per hour this is looking bad.

Insurance fraud.

Mostly this involves a counselor billing public insurance for work they didn’t do or for way more time than they actually spent with the client. It is really suspicious if one counselor bills the state for a thousand dollars a month worth of work and another counselor bills – say twelve million. For a big lie like that you get to lose your license, go to jail and get the stupid person of the year award.

Remember the vast majority of counselors and therapists do NOT get their licenses revoked. The few professionals who do harm clients by doing the things that cost them their licenses make things bad for everyone, especially for their clients.

Hope that answered the question “Why counselors lose licenses” and helps people to find honest ethical help in their local area.

For more on this subject see:

5 Rules for Picking the Right Therapist

What to do if Therapy is not helping

How to Spot a Bad Therapist

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For more about David Joel Miller and my work in the areas of mental health, substance abuse and Co-occurring disorders see the about the author page. For information about my other writing work beyond this blog check out my Google+ page or the Facebook author’s page, up under David Joel Miller. Posts to the “books, trainings and classes” category will tell you about those activities. If you are in the Fresno California area, information about my private practice is at A list of books I have read and can recommend is over at Recommended Books


8 thoughts on “Reasons Counselors and Therapists Lose Licenses

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