For dentists entering the workforce as associates — or for practice owners who are hiring — the associate employment agreement is one of the most consequential documents they will sign. The terms of an associate agreement define compensation structure, working conditions, restrictive covenant provisions, ownership of patient relationships, and the conditions under which the arrangement can end. Entering an associate relationship without a clear understanding of what the agreement provides, and what it does not, can have significant professional and financial consequences that extend well beyond the initial employment period.
Mandelbaum Barrett PC attorney William Barrett, Esq. presented at the New York County Dental Society’s program on associate dental contracts, sharing guidance on the key provisions dentists and practice owners should understand before signing or offering an associate agreement. Barrett practices in the firm’s dental law practice group, advising dental professionals and practice owners on employment agreements, practice acquisitions, partnership arrangements, and other legal matters specific to the dental industry. The firm regularly presents at dental society programs to help dental professionals understand their legal rights and obligations.
Key Provisions in Associate Dental Agreements
Associate dental agreements vary widely in their terms, but several provisions deserve particularly careful attention. Compensation arrangements may involve a base salary, a production-based formula, or some combination of the two — and the specific definition of “production” in the agreement materially affects how compensation is calculated. Associates should understand not just the rate but the methodology before accepting any offer, since different definitions of gross billings, collections, or adjusted production can produce very different actual compensation outcomes.
Restrictive covenants — including non-compete and non-solicitation provisions — are a standard feature of most associate dental agreements, and their enforceability under New York and New Jersey law depends on whether their scope, duration, and geographic reach are reasonable under the circumstances. Having counsel review the restriction before signing is far preferable to challenging it after the relationship ends. Other key provisions that deserve careful review include:
- Ownership of patient records and patient contact information upon the associate’s departure
- Terms governing termination without cause and the applicable notice period
- Tail insurance obligations for malpractice coverage after the agreement ends
- Clarity on who owns goodwill generated during the associate’s tenure
Understanding these provisions before signing gives both the associate and the practice owner clarity about what each party is committing to and what protections apply if the relationship does not work out as expected.
According to the Bureau of Labor Statistics, employment in the dental profession continues to grow, with more dentists entering the workforce through associate arrangements before establishing or purchasing their own practices. The terms of the initial associate agreement can significantly shape a dentist’s professional and financial trajectory for years after that first arrangement ends.
Contact Mandelbaum Barrett PC for Dental Law Guidance
If you are a dental professional reviewing an associate agreement or a practice owner structuring an associate arrangement, the dental law team at Mandelbaum Barrett PC can help.
Reach out through our contact page to speak with our team. We are here to guide dental professionals through every stage of associate employment and practice ownership arrangements.