The drafting and implementation of employment contracts may not be one of the most exciting parts of running a dental and medical practice, but these contracts have become a necessary component of most successful businesses. Employment contracts can cover everything from salary and bonus structures to parking policies and the office dress code. In other words, employment contracts are intended to be flexible, “living” documents which can be modified to address a wide array of employee rights and responsibilities.

One provision of employment contracts has come under fire: the confidentiality clause. More than simple reinforcement of the patient protections covered by HIPAA, for example, employers are finding that requiring employee confidentiality has a number of benefits, including the protection of trade secrets. For dental practices, confidentiality provisions can be helpful in a number of ways, such as by encouraging open discussion of potential expansion, hiring practices, etc.

Recently, however, confidentiality provisions are being seen as overly restrictive, and government agencies have begun to declare some to be unlawful. This means that employers can no longer simply include the provisions they want and leave acceptance up to the potential employee. Instead, employers who are found to be using improper confidentiality provisions in their employment contracts are facing fines and penalties, not to mention the unenforceability of the confidentiality provision in the first place. The bottom line is that failure to familiarize yourself with current regulations regarding confidentiality provisions could leave employers exposed.

If the employment contracts used by your dental and medical practice include confidentiality clauses, it is recommended that you have those contracts reviewed by an attorney to ensure compliance with the most recent regulations. Even if you believe that your provisions are simple or not overly restrictive, it is best to play it safe and have your contracts reviewed frequently so as not to expose your practice to unforeseen penalties.

Frequently Asked Questions

Q: Why are employment contracts important for dental and medical practices?
A: Employment contracts are essential for outlining the terms of employment, including salary, benefits, and workplace policies. They serve as legally binding agreements between employers and employees, ensuring clarity and protection for both parties.

Q: What is the purpose of confidentiality clauses in employment contracts?
A: Confidentiality clauses in employment contracts are designed to protect sensitive information, such as patient data and trade secrets. They help safeguard the privacy of patients and the intellectual property of the practice.

Q: How do confidentiality clauses benefit dental practices?
A: Confidentiality clauses encourage open discussion among employees regarding sensitive matters like potential expansions, hiring strategies, and proprietary methods. They create a secure environment for sharing information within the practice.

Q: Why have confidentiality provisions faced scrutiny recently?
A: Government agencies have started scrutinizing confidentiality provisions in employment contracts for being overly restrictive. Some provisions have been deemed unlawful, leading to fines and penalties for employers who fail to comply with regulations.

Q: What are the consequences of using improper confidentiality provisions in employment contracts?
A: Employers using improper confidentiality provisions may face fines, penalties, and the unenforceability of the confidentiality clause. Failure to comply with regulations could also expose the practice to legal risks and reputational damage.

Q: How can dental and medical practices ensure compliance with confidentiality regulations?
A: It is recommended to have employment contracts, especially those with confidentiality clauses, reviewed by an attorney regularly. This helps ensure compliance with the latest regulations and minimizes the risk of penalties or legal issues.

Q: What should employers do if they have confidentiality clauses in their employment contracts?
A: Employers should proactively review and update their employment contracts to ensure compliance with current confidentiality regulations. Seeking legal advice and staying informed about changes in the law are crucial steps to mitigate risks.

At Dental & Medical Counsel, PC, we understand navigating the legal process can be tricky. We believe every doctor deserves the best advice and service so doctors can do what they do best, treat their patients. We make their lives easier by providing expert guidance, so they can focus on their personal and professional aspirations.

About Ali Oromchian, Esq.

Ali Oromchian, JD, LL.M. is the founding attorney of the Dental & Medical Counsel, PC law firm and is renowned for his expertise in legal matters

In addition to practicing law for almost 20 years, Ali is also a renowned speaker, throughout North America, on topics such as practice transitions, employment law, negotiation strategies, estate planning, and more! Ali has helped hundreds of dentists realize their professional goals and looks forward to aiding you in navigating the legal landscape.