9
legal matters
Things to Know
About Your Dental Associate Contract
by Joseph L. McGregor
Your first dental associate contract can set your career on a positive trajectory. It can also result in disappointment, disadvantage, and in some circumstances, a lawsuit. This article is
intended to outline a few common issues in dental associate contracts that may not be apparent to first-time dentists.
1. Contracts are negotiable.
Nearly all dental employment contracts are negotiable. Most
likely, the contract presented to you is a stock contract that may
or may not have been prepared with you in mind. Accordingly,
there will be provisions that are neither relevant nor appropriate.
Your employer understands this, and nearly every employer will
entertain reasonable revisions. An employer unwilling to at least
listen to your concerns should be seen as a red flag.
2. Are you an employee or an independent contractor?
Whether you are an employee or independent contractor is not
nearly as important as understanding the difference between the
two. Both formats have their place, and each have their benefits.
Very generally, employment relationships are typically more protected under state laws, while independent contractors have the
potential to realize better tax efficiency. Legally, though, what’s
most important is that you have an employment agreement for
an employment relationship, and an independent contractor’s
agreement for a contract relationship. Mixing the two can lead
to expensive misunderstandings.
12 NORTH TEXAS DENTISTRY | www.northtexasdentistry.com
3. How are you compensated?
It’s common—and understandable—for job-seekers to fixate on
the percentage of the pay. It must be understood that not all percentages are created equal. Is your percentage based on gross
production, or is it based on gross collections? Are you penalized
for write-offs, or discounts awarded by the practice? Are you
compensated for hygiene or x-rays? Are supplies or lab fees
deducted? Will you be given an accounting of the practice’s collections or deductions?
4. How are you scheduled?
Most dental contracts do not promise any certain level of scheduling, which can significantly impact pay. This can render high
percentages illusory if the practice fails to generate patient traffic,
or suffers a dip in business. This is especially true in startup practices, but can also be relevant to practices where the owner operates a satellite office close enough for patients to travel back to
the owner, and in cases where another associate works in the
office alongside you. Few practices are willing to assume the risk
of promising patients to you, so read the contract in the context
of worst-case scenario.
5. Where are you working?
Many practices are trending towards sat []Hٙ