Reviewing Employment Agreements
2026
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Quick Tips for the Dental Office
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Reviewing Employment Agreements
It is extremely important to read any contract before signing. A contract is a legally binding agreement and you are responsible for the terms of the agreement, regardless of whether or not you read it. Employment agreements outline your rights and responsibilities under the law. If you are considering signing an employment contract, here is a basic outline of terms you may find within the agreement.
General Items to Note in Associate / Employment Agreements:
• Employment Status: Will you be classified as an employee( W2) or an independent contractor( 1099)? The two are very different; independent contractors are responsible for their own benefits and insurance, and will need to pay self-employment taxes.
What are the work hours( days per week, hours per day), work locations( will you be expected to provide muti-site coverage), are there any on-call expectations?
• Compensation: Will be you be paid a salary, a percentage of collections or production, or a hybrid?
What is the total compensation package? Health insurance, retirement options, paid time off, continuing education expenses, licensure renewal fees, and DEA fees can all be included as a part of the compensation package.
• Terms of Contract: Does your agreement stipulate how long you will be employed by the practice, or include start and end dates? Is it subject to renewal or extension?
Look for a termination clause, which will outline the circumstances under which either party can terminate the agreement. In addition, what are the notice requirements or how many days’ notice is required by either party before the agreement can be terminated.
• Restricted Covenants: Restricted Covenants( non-competes) are enforceable in Pennsylvania if the terms are reasonable. That is not to say a restricted covenant will not be enforced if it is considered“ unreasonable” but it is more heavily scrutinized by the courts.
Restricted Covenants prevent employees from engaging in the same or similar business, whether independently, or with another employer at the end of the employment relationship. Pay attention to limits on time periods, and geographic area.
2026