Dental Associate Agreement and Employment Contract: Is it In line With What I Should Expect, and Is it Reasonable?

This time of year is prime time for employment changes across the dental industry. May through August is always the busy time. Dentists are completing residency programs, dental students are graduating, and they are all going to be reviewing employment agreements now or very soon.

Here are a few things to consider:

1) What is the commitment? 1 year; 3 years; can you give reasonable notice if you are unhappy or dissatisfied in the practice a. Most are 1 year b. If you receive a sign-on bonus or relocation incentive expect to commit to 2+ years. Typically, if you leave before your commitment you will need to pay back any bonus money you receive c. Notice periods across the nation have grown beyond the normal 2 week courtesy.
2) Want to associate in your home town and eventually own a practice in your home town? Be cautious of non-competes and restrictive covenants that would cause significant headaches in the future. Especially if your hometown is a small town. Resource: You Can’t Compete With Me – The Legality of Non-Compete Agreements
3) Are you an Employee (W-2) or an Independent Contractor (1099)? Associate positions throughout the dental industry vary greatly. W-2 employment is most likely what you truly are. That means the employer takes your tax withholding and takes responsibility of the daily operations of the practice. 1099 contractors are simply paid for services rendered. If this is your status, you are required to fulfill the entire tax obligation of your income. Resource: IRS website: Employee versus Independent Contractor
4) Production versus collections-based compensation: You need to understand which way you are getting paid, when it is calculated, and what is included and not included a. Is it calculated daily, weekly, bi-weekly, monthly, and quarterly? Many dentist don’t know when I ask them Are x-rays or hygiene exams included? Many times there are not c. Lab Expenses: are you responsible for all, some, or none of the lab expense?

5) Base compensation questions: a. Is it permanent or does it sunset after x number of months? b. Is it a draw on future commission or is it a salary? Resources: Dentist Contract Negotiations – Compensation Considerations
Be Realistic! Associate offerings on the East Coast are vastly different than those on the West Coast. Make sure to understand the compensation trends and models that are common in your market. Don’t compare offers to your friends, especially if you’re only talking % versus %. That completely depends on the production potential based on a combination of what the practice can provide and the abilities of the associate dentist.· Resource: What Can An Associate Dentist Earn in Different Parts of the U.S.
Other articles to explore:· Associate Agreements · Dentists – What to Know Before You Accept an Associate Position

Posted by Carl Guthrie, Senior Dentist Recruitment Consultant with ETS Dental. To find out more, call Carl at (540) 491-9104 or email at cguthrie@etsdental.com.

News/Insights

Salary Negotiations for Dentists Offers/Contracts/Compensation

Salary Negotiations for Dentists

Aug 29, 2023

When going into salary negotiations for a new position, it’s natural to feel intimidated. Some simple preparation will help you negotiate with confidence and a sense of fair...

The Contract Series: Part 3 – Before You Sign Offers/Contracts/Compensation

The Contract Series: Part 3 – Before You Sign

May 13, 2021

You’ve interviewed. You’ve negotiated. You’re ready to sign. Almost. There are still a few details to confirm.  The first, and perhaps most obvious, step you should ta...

The Contract Series: Part 2 – Reviewing the Terms Offers/Contracts/Compensation

The Contract Series: Part 2 – Reviewing the Terms

Apr 20, 2021

You’ve been offered a contract. In many cases, the initial contract is a standard document with some wiggle room. Remember, you’ll have to live with the conditions of this...

The Contract Series: Part 1 – Preparing For Negotiations Offers/Contracts/Compensation

The Contract Series: Part 1 – Preparing For Negotiations

Apr 13, 2021

 You’re in discussions with an employer for a position that looks like a great fit, and it looks like you’ll be offered a contract. However, one of the most critical aspe...

How to Turn Down a Job Offer Professionally Interviewing

How to Turn Down a Job Offer Professionally

Sep 23, 2020

In 2020, landing a position with an independent dental practice can be a challenge, particularly in the wake of a worldwide pandemic. In recent months, however, we've seen a s...

Associate Contracts: What to Look For in Your Next Contract Offers/Contracts/Compensation

Associate Contracts: What to Look For in Your Next Contract

May 13, 2020

A manila envelope appears on your desk with your new contract. It’s all there in black and white—the terms, salary, perks, and expectations. While an employment contract ...

Base Salary vs Actual Compensation Offers/Contracts/Compensation

Base Salary vs Actual Compensation

Dec 11, 2019

Not all salaries are created equal. All too often, we find that job seekers will overlook a potentially rewarding opportunity solely because the base salary offered is lower t...

What to Do When an Associate Doesn’t Want to Renew Their Contract Offers/Contracts/Compensation

What to Do When an Associate Doesn’t Want to Renew Their Contract

Aug 20, 2019

Maybe the contract renewal has been with the associate for a while and you’re hearing radio silence. Maybe they’ve told you they have no interest in renewing. Either way, ...

Are You Ready to Be a Partner? Offers/Contracts/Compensation

Are You Ready to Be a Partner?

Jun 3, 2019

There comes a time at every practice when taking on an additional partner makes good business sense. Partners, unlike associates, are part owners of a practice. Practice owner...

Do’s, Don’ts and Red Flags of Contract Negotiations Offers/Contracts/Compensation

Do’s, Don’ts and Red Flags of Contract Negotiations

Mar 29, 2019

Spring is in the air, and we are approaching the season of contract negotiations. A pool of fresh-faced graduates means dental positions around the nation will soon be in flu...