Suspension of License to Practice
The Texas State Board of Examiners of Psychologists imposed disciplinary sanctions on McGraw on January 27, 1989 for an inappropriate "dual relationship" reported in 1988 by a therapy client/employee from 1984. McGraw was ordered by the Board to take an ethics class, pass a jurisprudence exam, complete a physical evaluation, undergo a psychological evaluation and have his practice supervised for one year in order to continue his private practice in Texas. McGraw admits to giving the client a "job" at his office (which is not allowed), but denied carrying on a sexual relationship with the 19 year old, who says their relationship was "sexually inappropriate."[6][2][7] As of 2008, McGraw is still not licensed to practice therapy.