At Dental & Medical Counsel, we’ve helped countless associate dentists work through employment agreements that shape the trajectory of their careers. While many new graduates sign their first contract with eagerness, overlooking key clauses can lead to restrictive non-competes, surprise fees, or insufficient malpractice coverage.
Now, we will unpack what every new dentist should look for in an associate agreement so you can confidently protect your interests and focus on patient care. Whether you’re joining a large group practice or a small private office, understanding these contract elements is essential for long-term success. Rely on AssociateAgreements.com to help you structure your next contract to set your career up for long-term success.
Signing an employment agreement defines how your day-to-day role unfolds and how you’re compensated. In the dental world, relationships between owners and associates thrive when both sides understand the terms, from pay structures to professional responsibilities. A well-drafted contract spells out expectations, reducing ambiguity and preventing future disputes.
When owners fail to formalize the details, misunderstandings often arise. For instance, you might assume the practice covers your malpractice insurance, only to discover it’s taken out of your paycheck. The best agreements transparently address such specifics, leaving no room for surprises down the line.
Establishing clear guidelines also fosters a culture of mutual respect. Both parties enter the arrangement with a shared understanding, paving the way for a positive, collaborative environment. This clarity is ultimately reflected in patient care, ensuring stable staffing and fewer administrative headaches for everyone involved.
Employment agreements typically cover fundamental areas such as compensation, benefits, and job duties. While each practice has unique policies, certain clauses appear in nearly every contract—and these are the ones you must scrutinize closely.
Pay in dental settings commonly follows one of two models: a guaranteed base salary or a production-based approach. A base salary provides stability, but production-based pay can yield higher earnings if your patient load is substantial. Some agreements merge both, offering a base plus a bonus or a percentage of collections.
Ask whether the practice measures collections or production. Collections-based pay depends on how quickly insurance and patients settle bills, which can cause cash flow gaps. Production-based pay, on the other hand, counts all procedures performed, regardless of how soon payments come in. Clarifying these details upfront prevents billing disagreements and secures your financial peace of mind.
Beyond base pay, confirm the scope of your benefits, such as health insurance, retirement plans, or continuing education stipends. Some practices even cover professional membership fees or specialized certifications. Make sure any promises made verbally—like a commitment to sponsor advanced training—are captured in writing.
Malpractice coverage is another critical component. While you might assume coverage is automatic, some agreements require you to carry your own policy or reimburse the practice for their portion. Confirm the type of policy (claims-made vs. occurrence) and who pays for tail coverage upon departure. A single oversight here can leave you legally and financially vulnerable.
Restrictive covenants define your future opportunities if you leave the practice. Non-compete clauses typically set a geographic radius and time period during which you can’t open or join a competing office. Non-solicitation clauses may restrict you from recruiting staff or treating patients from your old practice.
Analyze if the radius is reasonable given the local population density. In urban areas, a five-mile radius can be vast, while in rural settings, it might barely matter. If the clause seems overly broad or could halt your career moves, negotiate modifications before signing.
Negotiating a dental employment contract calls for professionalism and a thorough understanding of your worth. Some associates shy away from contract negotiations, fearing they’ll appear ungrateful or risk losing the offer. However, approaching negotiations thoughtfully actually signals confidence and clarity about your goals.
Explain the rationale behind each request. For instance, if the base salary seems low compared to regional norms, show data from reputable salary surveys. Providing facts and benchmarks generally makes employers more receptive to adjustments.
Focus on finding mutual solutions. If the practice can’t raise your base pay, consider negotiating a higher percentage for collections or a bonus structure. Maintaining a respectful tone helps preserve the working relationship, even if some compromises are necessary. Strive for an agreement that aligns your success with that of the practice.
The best agreements balance your desire for fair compensation and career growth with the owner’s business goals. Look for synergy in areas like continuing education, where the practice invests in your skills, which in turn benefits patients. If both parties share in the rewards of growing the office, the contract fosters a long-term, collaborative spirit.
Signing a hastily drafted agreement can lead to misunderstandings around job duties, compensation, or termination terms. Such vagueness opens the door for disputes or even legal proceedings should the relationship sour. Prior to finalizing any dental employment contract, consult legal counsel or a trusted advisor to ensure clarity on every clause.
Documentation is your shield against future discrepancies. Keep digital or printed copies of all contract versions, along with any addendums or letters that modify the arrangement. If you discuss changes via email, retain those messages as proof of mutual consent to any alterations.
Monitor your pay stubs and benefits statements to confirm the practice upholds its commitments. If you spot inconsistencies—like fewer hours on your paycheck or missing malpractice fees—address them promptly. Timely confrontation of any breach can often prevent bigger conflicts.
Dental employment agreements set the tone for your growth, earnings, and day-to-day experiences as an associate dentist. By paying close attention to compensation formulas, benefits, and non-compete clauses, you ensure that you’re making a wise professional move. Thorough negotiations lead to fairer contracts and clearer expectations, both of which fuel a rewarding partnership.
At Dental & Medical Counsel, we specialize in helping dentists untangle the complexities of employment agreements. From contract drafting to final revisions, our team ensures every clause is transparent and aligned with your ambitions. For more resources, visit AssociateAgreements.com and contact us today. Securing a fair agreement is your foundation for a thriving dental career.
Frequently Asked Questions
Q: Why is an employment agreement important for associate dentists?
A: It outlines your compensation, responsibilities, and working conditions. A well-drafted agreement protects you legally and sets expectations clearly to avoid future misunderstandings.
Q: What are the risks of signing an agreement without reviewing it carefully?
A: You might overlook clauses like non-competes, surprise fees, or unclear malpractice terms, all of which could restrict your future career or affect your earnings.
Q: Should I rely on verbal promises from the practice owner?
A: No—verbal agreements are not legally binding unless put in writing. Always make sure any promises are clearly spelled out in your contract.
Q: What should I look for in the compensation section of my agreement?
A: Understand if you're being paid based on production, collections, or a base salary. Clarify whether it’s a blend and what metrics are used for bonuses or incentives.
Q: Why is it important to distinguish between collections-based and production-based pay?
A: Collections-based pay depends on when the practice actually receives payment, which can lead to delays. Production-based pay reflects your work output regardless of when money comes in.
Q: What benefits should be included in my contract?
A: Look for health insurance, retirement plans, CE stipends, malpractice coverage, and any other perks discussed during the interview process—make sure they're written into the agreement.
Q: What type of malpractice coverage should I have?
A: Confirm whether the practice provides claims-made or occurrence coverage, and who is responsible for tail coverage when you leave.
Q: How can non-compete clauses affect me?
A: They may limit where you can work after leaving the practice. Be sure to clarify the geographic radius and time limits, and assess whether they’re reasonable based on your area.
Q: Can I negotiate my associate contract?
A: Yes! Negotiation is expected. Use data to support your requests and approach the conversation professionally—it shows confidence and maturity.
Q: When should I involve a dental practice lawyer?
A: Before signing anything. A lawyer can identify vague terms, help you negotiate fairer terms, and make sure your contract aligns with your long-term career goals.
At Dental & Medical Counsel, we've been instrumental in realizing the practice goals of countless dentists. Whether you're looking to purchase, launch, or sell a dental practice, our expertise is your guide. Beyond the initial stages, we're committed to ensuring your dental practice remains legally compliant.
We provide comprehensive support, including employment law protections, dental contract reviews, and assistance with dental employment agreements. Additionally, we specialize in incorporating dental practices and securing trademarks. And for long-term planning, our services extend to helping dentists with succession and estate planning. Trust us to be your partner in every step of your dental practice journey.
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About Ali Oromchian, Esq.
Your Dental Lawyer
Ali Oromchian, JD, LL.M., is a leading legal authority in dental law and the founding attorney of Dental & Medical Counsel, PC, with over two decades of experience. His deep connection to dentistry comes from his wife's nearly two-decade-long career as a pediatric dentist.
This personal insight fuels his dedication to empowering dentists to navigate their legal challenges and achieve their practice goals. In doing so, Ali has helped thousands of doctors open their practices while maintaining legal compliance.
Ali is frequently quoted and contributes articles to dental publications, including the California Dental Society, Progressive Dentist, Progressive Orthodontists, Dentistry Today, Dentaltown, and The New Dentist magazines, further showcasing his commitment to the dental community.
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