Purchasing an optometry practice is a significant milestone, and as you prepare for ownership, reviewing existing employment agreements is one of the first essential steps. These agreements provide a clear understanding of employee roles, expectations, and protections, and it’s crucial to ensure they align with your vision for the practice.

Reviewing Existing Employment Agreements

Before making any decisions about updating or renegotiating employment contracts, it’s important to thoroughly review the current agreements in place. Doing so gives you insight into how the practice operates and what commitments are already made to staff. Identifying potential issues in these agreements early can help avoid complications down the line.

How to Obtain and Analyze Current Contracts:

Request copies of all active employment contracts during the due diligence process. If any are missing or incomplete, it could signal potential issues that need to be addressed.

Key Elements to Review:

• Compensation and Benefits – Ensure pay and benefits match industry standards and align with your practice’s budget.
• Work Schedules and Job Responsibilities – Understand how staff duties and hours are outlined to ensure they are reasonable and manageable.
• Termination and Severance Clauses – Be aware of terms regarding employee termination to prevent future complications.
• Non-Compete and Non-Solicitation Clauses – Evaluate the fairness of restrictions placed on employees leaving the practice.
• At-Will vs. Contract Employment – Determine whether employees are at-will or have fixed-term contracts, as this impacts their rights and protections.

Identifying Outdated or Non-Compliant Terms:

It's essential to review the agreements for any terms that might be outdated or in violation of current laws. Catching these issues early ensures compliance and reduces future risks.

If current compensation, benefits, and job duties are reasonable and in line with your objectives, these terms can remain unchanged to preserve continuity and stability for your team.

Employee Benefits That Support Retention:

Preserving existing benefits like healthcare and retirement plans can help retain your workforce and demonstrate your commitment to their well-being.

Non-Compete and Non-Solicitation Clauses:

If these clauses are fair and reasonable, maintaining them can protect the practice from losing key employees or clients after the transition.

Long-Standing Staff with Favorable Agreements:

If long-term employees have contracts that are favorable, it may be best to keep them as they are, showing respect for their contributions and maintaining positive relationships.

What to Update

While some contracts may remain unchanged, others will need updates to reflect your vision for the practice or to comply with the latest employment laws. Updating key terms helps you align the practice’s goals with the needs of your staff while ensuring legal compliance and fair treatment for all employees.

Modifying Job Roles and Responsibilities:

With new ownership, job roles may shift, so updating responsibilities and expectations in employee contracts can help clarify the changes and set clear boundaries.

Adjusting Compensation and Bonus Structures:

If you plan to make adjustments to employee compensation or introduce new performance incentives, updating contracts will ensure that all parties are clear on expectations and rewards.

Updating Benefits Packages:

Enhancing employee benefits—whether through better healthcare, retirement plans, or flexible work arrangements—can be a great way to attract and retain talent.

Aligning Policies with Compliance Standards:

It’s essential to review and update all policies to ensure they are compliant with current state and federal labor laws, including overtime, paid leave, and workplace safety.

Revising Work Schedules and Expectations:

Any changes to office hours, staffing levels, or scheduling need to be reflected in employment contracts to prevent misunderstandings.

How to Renegotiate Employment Agreements

After identifying which terms need to be updated, the next step is renegotiating the agreements with employees. Clear communication is crucial in this phase to explain the reasons for the changes and ensure everyone understands the new expectations. Renegotiation provides an opportunity to align your vision with the needs of the team while maintaining transparency.

Approaching the Conversation with Employees:

When renegotiating terms, be clear about why changes are being made and how they benefit both the practice and the employees. Creating a space for open dialogue helps ease the transition.

Key Points to Cover in Negotiations:

• - Compensation and Benefits Adjustments
• - Revised Job Descriptions
• - New Compliance Updates
• - Contract Duration and Termination Clauses

Handling Resistance to Changes:

Some employees may be resistant to change, so it’s important to be patient and offer incentives or reassurances to help them feel more comfortable with the updates.

Legal and Compliance Considerations

Ensuring that all employment agreements are legally sound is critical for protecting both your practice and your employees. Labor laws evolve, and staying compliant with these changes will help you avoid costly legal disputes. Consulting with an attorney to ensure all agreements are updated in line with current regulations is a smart move for new practice owners.

State-Specific Employment Laws:

Each state has its own set of regulations regarding wages, benefits, and employee rights. Make sure you’re familiar with the local laws to avoid non-compliance.

Federal Compliance Standards:

Federal laws like the Fair Labor Standards Act (FLSA), Family and Medical Leave Act (FMLA), and HIPAA can impact employment agreements. Stay informed to avoid penalties or lawsuits.

Non-Compete and Non-Solicitation Clauses:

Ensure that any non-compete clauses are reasonable and compliant with state laws. Overly restrictive non-compete agreements may not hold up in court.

When to Consult an Employment Attorney:

If you’re unsure about compliance or need help renegotiating contracts, seeking professional legal advice is essential to avoid mistakes and protect your interests.

Finalizing Agreements and Communication with Employees

Once updates have been made, it’s time to finalize the employment agreements and communicate the changes to employees. Transparency is key here, as everyone needs to understand the new terms and how they affect their roles within the practice. Providing clear documentation and addressing any concerns will ensure a smooth transition.

Ensuring Clear and Comprehensive Documentation:

Be sure that each updated agreement is clear and easy to understand. Employees should have sufficient time to review and ask questions before signing.

Meeting with Employees to Review Changes:

Schedule one-on-one or group meetings to walk employees through the changes, explain the rationale behind them, and answer any questions they may have.

Offering Support and Flexibility During the Transition:

The transition to new ownership can be challenging for staff. Offering flexibility or additional support can help ease the process and demonstrate that you value their contributions.

Conclusion: Building a Strong Foundation for Success

Successfully managing employment agreements during the acquisition of an optometry practice ensures a smooth transition and sets the stage for long-term success. By reviewing, updating, and renegotiating contracts, you can create a stable and legally sound work environment that supports both your practice’s goals and the needs of your employees.

Setting the Stage for Long-Term Success:

With solid employment agreements in place, you can focus on growing the practice, knowing that you’ve addressed key legal and operational issues upfront.

Planning for the Future:

Regular reviews of employment agreements will help ensure that your practice continues to comply with evolving laws and remains competitive in attracting and retaining top talent.

Contact Dental & Medical Counsel for Help with Employment Agreements in Your Optometry Practice

Navigating employment agreements is a crucial part of acquiring and managing an optometry practice. At Dental & Medical Counsel, we specialize in helping optometrists ensure their contracts are legally sound, compliant, and aligned with their long-term business goals. Whether you’re reviewing existing agreements, negotiating new terms, or ensuring compliance with state and federal laws, our team is here to guide you through the process. Contact us today to speak with an attorney who understands the unique needs of optometry practice owners.

Frequently Asked Questions

Q: Why is reviewing employment agreements important when buying an optometry practice?
A: Reviewing agreements ensures you understand existing employee terms, obligations, and any potential legal risks before finalizing the purchase.

Q: Can I change employee contracts after buying a practice?
A: Yes, but changes must be handled properly. Employees must agree to modifications, and any updates must comply with employment laws.

Q: What should I look for in existing employment agreements?
A: Key areas include compensation, benefits, job roles, termination clauses, non-compete agreements, and compliance with labor laws.

Q: Are non-compete clauses enforceable in optometry employment contracts?
A: It depends on state laws and how the clause is written. Some states restrict or ban non-compete agreements, so legal review is recommended.

Q: How do I ensure compliance with employment laws when updating contracts?
A: Consulting an attorney is the best way to ensure compliance with federal and state labor laws, including wage requirements and employee protections.

Q: Can I require employees to sign new agreements?
A: You can introduce new agreements, but employees must voluntarily agree. If they refuse, you may need to negotiate or offer incentives.

Q: What happens if an existing employment contract is outdated or legally questionable?
A: It should be revised or renegotiated to align with current laws and best practices to avoid potential disputes or liabilities.

Q: Should I keep current employee benefits the same?
A: If the benefits are competitive and help retain staff, keeping them can maintain stability. However, if improvements are needed, updates may be beneficial.

Q: How do I approach employees about contract changes?
A: Open communication is key. Clearly explain the reasons for changes, listen to concerns, and ensure employees understand the benefits of any updates.

Q: When should I consult an attorney about employment agreements?
A: You should consult an attorney before making any changes, during contract negotiations, or if you have concerns about compliance or enforceability.

About the Author

At Dental & Medical Counsel, PC, we understand navigating the legal process can be tricky. We believe every optometrist deserves the best advice and service so optometrists 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. We are optometry attorneys.

About Ali Oromchian, Esq.

Your Optometry Lawyer

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 being a optometry lawyer 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 optometrists realize their professional goals and looks forward to aiding you in navigating the legal landscape.