5 Things Every Dentist Should Know About their Associate Employment Agreement
Jordan Uditsky • April 30, 2021
Many factors play a role in a dentist’s career trajectory. Their skill and professional demeanor, the quality of the patient experience, and effectively distinguishing themselves in a crowded marketplace are certainly among those elements.
But dentists, whether they are seeking their initial placement or moving between practices, need to pay close attention to the document that will profoundly impact their professional future: their associate employment agreement.
Dentists joining an existing practice are almost always asked to sign an employment agreement. This document contains many provisions that will govern a dentist’s career while employed by the practice and in the years that follow. If you hold in your hands a proposed associate agreement, it is critical that you understand its terms and consequences - and that you meet with an attorney who has experience with dental employment contracts
– before signing on the dotted line.
While the entire document requires careful review, here are five key elements of a dental associate agreement that you should pay particular attention to:
1. Compensation Formulas
“How much does it pay?” Very few people, in any profession or occupation, will accept a position or sign an employment agreement without knowing the answer to that question. But in many associate agreements, the answer may be much more complicated – and confusing – than a straight annual salary.
A dentist’s total compensation package may consist of several different elements, each of which will impact how much a dentist actually earns. In addition to a base salary, these formulas often include commissions. Commission is a compensation arrangement under which the amount of compensation is based on the employee-dentist’s production. For an associate dentist, the amount of commissions could be calculated using:
- a flat percentage of the revenue generated, or the number of patients treated or procedures performed, by the dentist;
- the total amount billed for the work that the dentist performs in a pay period; and
- the gross amount collected from the dentist’s patients for work they performed in a pay period.
2. Non-Competition Agreement/Restrictive Covenants
If the day comes when a dental associate leaves their current employment, their associate agreement may limit (or at least attempt to limit) their ability to practice elsewhere. Typically, a non-competition agreement, sometimes referred to as a restrictive covenant, will purport to restrict an employee’s ability to engage in their current occupation within a specified geographic area for a set period of time. For dentists, this can mean that they pledge not to treat any patients in the identified area until the end of that period.
Similarly, non-solicitation agreements restrict an employee’s ability to actively seek the business of, or treat, the employer’s current patients/customers/clients/customers for a given period, though they are free to set up shop and do business.
Often, these covenants are so broad that courts will not enforce them. A court will consider the two primary factors when evaluating a non-competition agreement: its reasonableness and whether it is supported by sufficient consideration (such as a promise of continued employment). Specifically, for a non-compete to be enforceable in Illinois:
- Its geographic and temporal limitations must be no greater than needed to protect a legitimate business interest;
- Its restrictions must not impose an undue hardship on the employee; and
- Its restrictions must not be detrimental to the public.
While the specific non-compete in a proposed agreement may ultimately be unenforceable, associate dentists should attempt to address the nature and scope of such provisions at the outset rather than in contentious litigation after they leave the practice.
3. Term of Employment/Termination Provision
In Illinois, an employer can fire an employee for any cause at any time, other than for legally prohibited reasons such as race, gender, religion, and disability. The other exception to the rule of “at-will” employment is where the employer and employee enter into a contract that sets forth the term of employment, the reasons that could justify termination, and the notice required if the employer or employee decides to end the relationship.
Needless to say, an associate dentist and their attorney should ensure that they are fine with the proposed duration of employment, whether the parties can extend it, and why it could end.
4. Liquidated Damages
A “Liquidated Damages” provision in a contract defines or specifies the amount of damages that a party must pay if they breach the terms of their agreement without the non-breaching party needing to prove the actual damages they incurred, if any.
Courts will generally enforce contractual liquidated damages provisions where the damages due to a violation of the agreement are difficult to calculate and the liquidated damages specified bear a reasonable relationship to the foreseeable loss due to a breach. Given their potential liability under such a provision, associate dentists should carefully consider any liquidated damages clause in their agreement.
5. Malpractice Insurance
In a dental employment agreement, a section regarding “insurance” typically concerns dental professional liability insurance (malpractice insurance), and specifies which party is responsible for securing insurance coverage for the employee. Some agreements may require the employee-dentist to purchase his or her own insurance. In others, the employer will provide the insurance (sometimes through a group policy that will cover the employee-dentist). If the employee is responsible for procuring the insurance, this provision will also likely dictate the type and amount of the policy that the employee is responsible for procuring.
Malpractice insurance premiums can be substantial, so knowing who will be writing those checks will impact the financial benefits of any proposed compensation package.
We Focus on You So You Can Focus on Your Patients
As noted, no associate dentist should sign an employment agreement without reviewing the document with experienced counsel. At Grogan Hesse & Uditsky, P.C., we focus a substantial part of our practice on providing exceptional legal services for dentists and dental practices, as well as orthodontists, periodontists, endodontists, pediatric dentists, and oral surgeons. We bring unique insights and deep commitment to protecting the interests of dental professionals and their practices and welcome the opportunity to work with you.
Please call us at (630) 833-5533 or contact us
online to arrange for your free initial consultation.
Jordan Uditsky, an accomplished businessman and seasoned attorney, combines his experience as a legal counselor and successful entrepreneur to advise dentists and other business owners in the Chicago area. Jordan grew up in a dental family, with his father, grandfather, and sister each owning their own dental practices. This blend of legal, business, and personal experience provides Jordan with unique insight into his clients’ needs, concerns, and goals.
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We bring unique insights and deep commitment to protecting the interests of dental professionals and their practices and welcome the opportunity to work with you. Jordan Uditsky, an accomplished businessman and seasoned attorney, combines his experience as a legal counselor and successful entrepreneur to advise dentists and other business owners in the Chicago area. Jordan grew up in a dental family, with his father, grandfather, and sister each owning their own dental practices. This blend of legal, business, and personal experience provides Jordan with unique insight into his clients’ needs, concerns, and goals.
Why TODAY Is The Time To Prepare Your Practice – and Yourself - For an Uncertain Tomorrow
Bogus ADA Claims Regarding Dental Practice Websites Are Rampant. Your Lawyer Can Help You Tell the Difference Between a Real Problem and a Real Shakedown. Over 25 years have passed since the Americans with Disabilities Act (ADA) quite literally reshaped the landscape for people with disabilities. From building entrances to parking lots to restrooms to elevators, from hiring and employment opportunities to restaurants, stores, and websites, disabled Americans have far greater access to the same facilities, services, and opportunities as everyone else. Harassment at Best, Extortion at Worst For all the good it has accomplished, however, the ADA has also been abused by opportunistic individuals and attorneys who have used the law in bad faith to shake down small businesses, including dental practices, for alleged violations that have not actually caused any harm or infringed upon any rights afforded by the act. These self-appointed ADA compliance "testers" have filed thousands of nuisance ADA suits that have cost American businesses millions of dollars. According to one analysis, ADA lawsuits have increased by 320% since 2013, with over 4,000 suits filed in 2024 alone. Many plaintiff's law firms file hundreds of cookie-cutter ADA lawsuits each year. One person can visit multiple businesses or websites in a single day solely to identify even the slightest accessibility transgressions in order to generate claims. While these suits can focus on any number of alleged ADA shortcomings, those relating to website accessibility (discussed in detail in this earlier post ) filed by a handful of law firms and serial plaintiffs have earned the scorn of small businesses and practices across the country. That's because these "testers" and the lawyers who represent them specifically target small businesses, as they typically have limited means to defend themselves, may not be able to discern between legitimate and bogus claims, and often see a quick payoff as the path of least resistance. Here’s how the shakedown typically goes down: A plaintiff or their attorney sends the practice a demand letter in which they claim that the practice’s website is inaccessible to people with disabilities (e.g., missing image alt text, inaccessible forms, incompatible with screen readers). They cite a violation of Title III of the ADA. They make a demand for a cash settlement, often ranging from $2,500 to $25,000, alongside a request for accessibility fixes. The business/practice cuts a check in exchange for a release of any ADA claims by that plaintiff related to the website. The business/practice may then receive more demand letters, often from the same firm, on behalf of other plaintiffs who make the same claim, and the extortion continues. Don’t Act Impulsively – Do This Instead All this is not to say that dental practice owners should consider all such claims and demands to be frivolous or ignore their ADA obligations relating to their website. To be sure, a meritorious ADA lawsuit can indeed expose a practice to significant financial and reputational damage. Before reflexively giving in to an ADA demand letter and settling a supposed claim, practice owners should take the following steps: · Don't Panic, But Don't Ignore It. As noted, a demand letter with legalese and ominous language doesn’t mean that you’ve done anything wrong or actually violated the law. While your immediate reaction may include fear, confusion, or anger, don’t act impulsively. 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Understanding your site's actual accessibility helps inform whether settlement, remediation, or another approach makes sense and whether you need to take additional steps to avoid future claims. Keep in mind that this isn't just about legal compliance—it's good business. An accessible website serves all patients better and demonstrates your commitment to inclusivity. If you have questions about your business's ADA obligations and how to protect it from accessibility complaints, please call Grogan, Hesse & Uditsky at (630) 833-5533 or contact us online to arrange for your free initial consultation. At Grogan Hesse & Uditsky, P.C., we focus a substantial part of our practice on providing exceptional legal services for dentists and dental practices, as well as orthodontists, periodontists, endodontists, pediatric dentists, and oral surgeons. We bring unique insights and deep commitment to protecting the interests of dental professionals and their practices and welcome the opportunity to work with you. Jordan Uditsky, an accomplished businessman and seasoned attorney, combines his experience as a legal counselor and successful entrepreneur to advise dentists and other business owners in the Chicago area. Jordan grew up in a dental family, with his father, grandfather, and sister each owning their own dental practices. This blend of legal, business, and personal experience provides Jordan with unique insight into his clients’ needs, concerns, and goals.
