Don’t Sign Blindly: What Every New Dentist Needs to Know About Employment Agreements
TLDR: Key Takeaways for New Dentists
Before signing your first employment agreement, make sure you understand:
Compensation: Know if you’re paid by salary, production, or collections, and how bonuses and deductions work.
Termination Terms: Ensure you can leave without cause with reasonable notice (60–90 days is typical).
Non-Compete Clauses: These can limit where you work after leaving, check the radius, duration, and state laws.
Ownership Opportunities: Get partnership promises in writing with clear terms.
Malpractice Insurance: Confirm who pays for coverage and tail insurance.
Work Schedule & Autonomy: Clarify your hours, duties, and control over clinical decisions.
Dispute Resolution: Make sure legal disputes are governed by your state’s laws.
Bottom line: Don’t sign blindly. Get professional help to protect your career and future.
As graduation nears, many dental students start thinking about their first job offer, the excitement of finally practicing, earning a salary, and joining a team. But before you celebrate, there’s one document that deserves careful attention: your employment agreement.
This contract sets the foundation for your professional life, compensation, hours, non-compete restrictions, and even how you can leave. Unfortunately, many new dentists sign without fully understanding the fine print.
Here’s what to look for (and what to watch out for) before you sign on the dotted line.
1. Compensation: It’s Not Just About the Salary
Your pay structure can be more complex than it seems. Employment agreements may offer:
Straight salary
Percentage of collections or production
Base salary plus bonus
Production vs. Collections
Production-based pay: You’re compensated for what you bill, even if the practice doesn’t collect payment.
Collections-based pay: You’re paid when the practice collects, which could mean delays or reduced pay if insurance reimbursements are slow.
Guaranteed Base Period
If paid on production or collections, confirm whether there’s a guaranteed base salary for the first few months as you build your patient base.
Bonuses and Adjustments
Ask:
How are bonuses calculated?
When are they paid?
Do write-offs or discounts reduce your credited collections?
Example: A new associate thought she’d earn 30% of collections, but her contract allowed the owner to deduct lab fees and insurance adjustments before calculating her share, cutting her pay significantly.
2. Term and Termination: How (and When) You Can Leave
Every agreement includes:
Term: How long the contract lasts
Termination provisions: How either party can end it
Without Cause Termination
You should be able to leave “without cause” with advance notice (usually 60–90 days). Without this clause, you could be locked in even if the job isn’t a good fit.
With Cause Termination
Employers may terminate “for cause” if you violate certain terms, like losing your license or failing to meet production goals. Make sure these are clearly defined and not overly broad.
Notice Requirements
Check:
How much notice you must give
Whether notice must be in writing
Example: One dentist’s contract required 180 days’ notice before leaving, making it nearly impossible to accept a better opportunity elsewhere.
3. Restrictive Covenants: Non-Competes, Non-Solicits, and Confidentiality
These are some of the most important (and often misunderstood) sections of a dental employment contract.
Non-Compete Clauses
These restrict where you can work after leaving. For example, a 10-mile radius for one year may sound fine, until you realize it covers your entire metro area.
Non-Solicitation Clauses
These prohibit you from taking patients or staff with you if you move practices.
Confidentiality Clauses
These protect the practice’s business information, but make sure they don’t limit your right to use your general skills or experience elsewhere.
Important: Non-compete laws vary widely by state. Some states (like California) prohibit them entirely, while others enforce them strictly. Even where allowed, they must usually be reasonable in time, distance, and scope.
4. Ownership Opportunities: Read the Fine Print
If your agreement mentions the possibility of future partnership or ownership, make sure those terms are realistic and clearly defined.
Ask:
When will partnership be offered?
How will the buy-in price be determined?
Will your performance during employment affect eligibility?
A vague “potential to buy in later” often means nothing is guaranteed, so get specifics in writing.
5. Malpractice Insurance and Liability
Confirm:
Who pays for malpractice insurance
Who covers tail coverage (insurance for claims made after you leave)
If the employer pays only for “claims-made” coverage and you’re responsible for the tail, that cost can easily run into the thousands when you depart.
6. Schedule, Duties, and Clinical Autonomy
Review your:
Work schedule (days/hours per week)
Weekend or multi-location requirements
Control over procedures and treatment decisions
If you’re being asked to meet high production quotas or if the agreement limits your autonomy on treatment decisions, those are red flags.
7. Dispute Resolution and Governing Law
Most contracts specify:
How disputes will be handled (e.g., arbitration or mediation)
Which state’s laws apply
If you’re signing with a multi-state dental group, make sure the governing law and venue are in your state, or at least not across the country.
Final Thoughts: Read It, Understand It, and Don’t Sign Blindly
Employment agreements are meant to protect both sides, but they’re drafted by employers, not by you. Before signing, take time to understand:
How you’ll be paid
What happens if you leave
What restrictions apply afterward
Even a short contract can carry long-term implications for your career mobility and earning potential.
Need Help Reviewing Your Dental Employment Agreement?
If you’re a dental student or recent graduate reviewing your first employment offer, get professional guidance before you sign. A short consultation can prevent costly mistakes later.
At Lisa Albrecht, P.A., we help dental professionals understand and negotiate employment agreements — so they can start their careers with clarity and confidence.
📞 Ready to review your contract? Contact us today to schedule a consultation.