How to Make Your Law Firm Compliant with Outside Counsel Guidelines (OCGs)

Outside Counsel Guidelines, or OCGs, have become a standard part of doing business with corporate legal departments. These are formal expectations that clients set for how they want law firms to handle everything from billing and staffing to communication and compliance.

For law firms, following Outside Counsel Guideline practices is now an important part of maintaining good client relationships, avoiding billing disputes, and ensuring your firm gets paid on time.

So, how can a law firm make sure it’s fully compliant with client OCGs?

Below is a step-by-step approach on how to make your law firm compliant with Outside Counsel Guidelines (OCGs).

• Start by Reading and Understanding the Guidelines Thoroughly

The first step is simple, but often skipped: read the guidelines. Every client’s OCGs are different. Some are short and straightforward, while others can span several pages with very detailed rules.

Before starting work on any new matter, your team should carefully read through the client’s OCGs. Look for important billing rules, staffing requirements, timekeeping expectations, and any restrictions on expenses or disbursements.

It's also a good idea to highlight anything that seems unclear or unusual. If you don’t fully understand something, don’t guess; reach out to the client for clarification. This early step sets the tone for the entire relationship and helps you avoid misunderstandings later.

• Train Your Team and Keep Everyone in the Loop

It’s not enough for just the billing department or one partner to be familiar with the OCGs. Everyone who works on the client’s matters, whether it’s attorneys, paralegals, or administrative staff, should know the relevant rules.

Once the OCG is reviewed, hold an internal meeting to explain what it means for your team. You don’t need to go line by line, but you should explain what the client expects when it comes to things like who can bill, what time entries should include, or how often updates need to be provided.

You might also consider creating a short internal summary for each client’s OCGs so that team members can refer back to it when needed. Keeping your whole team informed helps prevent small errors from turning into larger compliance issues.

• Improve Timekeeping and Billing Practices

Most OCG violations happen during the billing process, so it’s important to have good timekeeping habits from the start. Lawyers and staff should enter time daily, using clear, descriptive language that explains exactly what was done. Avoid vague entries like "emails" or "work on case", clients want to know what the time was spent on and whether it was necessary.

Also, pay close attention to billing increments. If the client only accepts 0.1 hour increments, don’t submit 0.25 or 0.5 unless specifically allowed. Make sure tasks are being billed at the right level, too.

If a paralegal can do something, it shouldn’t be billed by a senior partner. These details might seem small, but they matter a lot to clients, and they can affect whether invoices are approved or delayed.

• Use Tools to Catch Errors Before Clients Do

Even with the best team, mistakes can happen. That’s why many law firms use legal billing software or e-billing systems that help review invoices before they’re sent to the client.

These tools can flag entries that don’t meet the OCG requirements, such as block billing, excessive time entries, or unapproved expenses. They can also help make sure rates are applied correctly and budgets aren’t exceeded.

Using software doesn’t replace human review, but it does catch a lot of common issues early. If your firm doesn’t already use billing review tools, now might be a good time to explore some options, especially if you work with large corporate clients who have strict OCGs.

• Keep the Communication Flowing

Another key part of compliance is communication. Most OCGs include instructions on how often clients want updates, who should receive them, and what they should include. Make sure you’re following these instructions carefully.

If a project is taking longer than expected or if the team needs to change, let the client know right away. Don’t wait until the invoice is sent to explain why something took more time.

Open communication builds trust and reduces the chances of having bills questioned or rejected. It also shows that your firm takes the relationship seriously and respects the client’s expectations.

• Stay Up to Date and Be Flexible

Clients sometimes update their outside counsel guidelines, especially at the start of a new year or fiscal quarter. Make sure someone on your team is responsible for tracking these updates and sharing them with the rest of the firm.

Even small changes, like new rules around expense caps or preferred e-billing formats, can affect your compliance if you’re not aware of them. Being flexible and able to adapt to changes shows clients that your firm is organized, responsive, and easy to work with.

Final Thoughts

Compliance with outside counsel guidelines comes down to clear processes, consistent execution, and attention to detail. When your team understands the client’s requirements, follows billing protocols, and communicates proactively, you reduce the risk of invoice rejections, delays, or strained relationships.

In short, staying OCG-compliant protects your revenue, builds client confidence, and keeps your firm aligned with what today’s legal departments expect.

Need support with your billing process or selecting the right tools? Contact us to discuss how you can improve compliance and reduce billing risk.