Dental Associate Contracts: What to Know Before Signing
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Dentists
Compensation
Contracts
Landing your first associate position is a huge milestone in your dental career. You’ve spent years in school, passed your boards, and now you’re finally stepping into the professional world. But before you sign on the dotted line, there’s something you need to know, your contract could be hiding details that cost you thousands of dollars and limit your career options without you even realizing it.
Many individuals rush to sign their first contract, excited to start earning and practicing. But a bad contract can trap you in an unfair deal, one that slashes your pay, restricts where you can work next, and sticks you with unexpected expenses. These aren’t just minor inconveniences; they can add up to tens of thousands of dollars in lost income or career roadblocks that are hard to undo.
If you want to protect your financial future and career flexibility, it’s crucial to know what to look for, what to question, and what to negotiate before signing.
Understanding Term and Termination Clauses
One of the most overlooked sections in a dental associate contract is the term and termination language. In simple terms, this is the chapter that spells out how long your job will last and how either side can hit the eject button.
Pay attention to whether your agreement is for a fixed time (like a year), or “at-will,” which can be far less stable. A good contract will also lay out exactly how you or the practice can walk away — whether that’s “for cause” (think fraud or repeated no-shows), or “without cause” (when you just want to move on with proper notice, usually 30 to 90 days).
Before signing, double-check that the agreement addresses:
- What happens if someone ends the contract—are you expected to wrap up all your scheduled patient care or immediately hand off all unfinished work?
- When do you get your final paycheck, and is everything you’ve earned (including bonuses) clearly accounted for?
- Who handles patient records and referrals for ongoing care?
A transparent, specific termination section doesn’t just protect the employer; it keeps your own exit route clear, tidy, and—most importantly—on your terms.
Defining Your Role: Scope of Employment
Before you even think about compensation, make sure you know exactly what you’re being hired to do. Your contract should spell out your responsibilities in no uncertain terms. What procedures are you expected to perform? Are you limited to general dentistry, or will you also be handling extractions, endo, or even supervising hygienists and assistants? Clarify what’s in and outside your job description.
It’s also important to get specific about your work schedule. Nail down the number of days and hours you’re expected to work each week, and whether you’ll be expected to cover evenings or weekends. If production targets or other performance benchmarks are part of the deal, those should be in writing, too — vague language is where misunderstandings (and disappointments) begin.
The Compensation Trap: Why Your Paycheck Might Be Smaller Than You Expect
Compensation is the first thing most dentists focus on when reviewing a contract, but it’s also where many associates get blindsided. You might see an offer that says “35% of production” or “30% of collections,” but what does that mean for your paycheck?
Let’s say you produce $80,000 for one month and your contract promises 35% of production. You might expect to take home $28,000 before taxes. But if the practice accepts insurance, a big chunk of that production gets written off due to PPO adjustments and negotiated rates. If 30% of your production gets slashed by insurance adjustments, your actual collections could be closer to $56,000, which means your paycheck suddenly drops to $19,600 instead of $28,000. That’s a $100,000+ difference over a year.
The same issue arises if your contract is based on collections. You might perform the work, but if the practice has slow billing, insurance denials, or patients who don’t pay on time, your paycheck gets delayed or reduced.
How to Protect Yourself:
- Ask whether your percentage is based on gross production, adjusted production, or net collections.
- Negotiate a minimum base salary so you have financial stability.
- Clarify who’s responsible for unpaid patient bills. If a patient doesn’t pay, does that come out of your earnings?
If a contract isn’t clear on these details, assume the worst, or better yet, ask for clarification in writing.
The Non-Compete Clause: Could You Be Forced to Move?
One of the biggest surprises for many dentists is realizing that a non-compete clause could force them to relocate after leaving a job. Non-competes are common in associate contracts and are meant to protect the practice’s patient base, but some are so restrictive they can box you out of your entire city or state. A fair non-compete typically lasts 1-2 years and applies to a 5–10-mile radius in urban areas or 15-25 miles in rural areas.
But some contracts go too far, banning you from working anywhere within an entire metro area, county, or even state. This could mean that if you leave, your only option is to move or completely switch how you practice, like transitioning to tele dentistry.
Some contracts also have non-solicitation clauses, which means you can’t notify your patients if you leave. Even if you build great patient relationships, you might not be able to tell them where you’re going.
And while the Federal Trade Commission proposed a nationwide ban on non-competes back in 2023, as of 2025, no federal rule has been enacted. That means non-competes are still legal and enforceable in many states, unless your state has passed its own ban or limits. States like California and North Dakota, for example, do not enforce non-compete agreements in employment contracts.
Before signing, ask yourself:
- If I leave, can I still work in this area, or will I be forced to relocate?
- Is geographic restriction reasonable for the type of community I’m in?
- Is there a buyout option that allows me to pay a fee to exit the non-compete early?
If the restrictions seem too aggressive, negotiate before signing. Non-competes can be adjusted, and some states like California and North Dakota ban them altogether for employment contracts.
Hidden Costs: Are You Paying More Than You Think?
Some of the most overlooked contract clauses are the ones that quietly shift costs onto the associate and can eat into your earnings quickly.
For example, lab fees are often buried in contracts, and if you’re responsible for 35% of lab costs, that could be thousands of dollars per month coming out of your paycheck. Malpractice insurance is another big one some practices cover it, while others make associates pay for it. If you’re responsible for tail coverage when you leave, that could mean a $2,000–$5,000 bill you weren’t expecting.
Before signing, find out:
- Who pays for lab fees? If it’s you, is there a cap on how much can be deducted?
- Who covers malpractice insurance? If you leave, do you have to pay for tail coverage?
- Are CE costs reimbursed? Some contracts offer a stipend for continuing education, while others leave it entirely up to the associate.
The Partnership Promise: Is It Real or Just a Selling Point?
Many dental practices dangle the idea of future ownership to make an associate position seem more attractive. But unless the partnership path is clearly outlined in writing, there’s no guarantee it will ever happen.
Some associates work 5+ years expecting a partnership opportunity, only to realize the owner never planned to sell equity. Others find out that the buy-in price is inflated beyond what’s reasonable, making it impossible to afford.
If a practice is offering a partnership track, ask for specifics:
- When will discussions about partnership begin?
- How will the buy-in price be calculated?
- Does partnership mean actual ownership, or just profit-sharing?
Without these details, the promise of ownership is just a vague idea, not a real opportunity.
Read the Fine Print
Your associate contract is more than just a job offer; it shapes your income, career mobility, and future opportunities. While salary is important, the real financial impact often lies in the fine print. Before signing, clarify how you’ll be paid, who covers expenses, and what happens if you leave. The right contract spells out your pay structure, responsibilities, and exit terms, giving both you and the practice owner peace of mind.
Seek Expert Advice
If you’re unsure about any language in your contract or want to be certain your interests are protected, don’t hesitate to seek expert advice. A dental attorney or a professional familiar with dental business law can help you spot hidden pitfalls, ensure your agreement aligns with industry standards, and even suggest improvements that might save you thousands in the long run.
