Before accepting a new position, make sure you know what coverage you will need to prevent later headaches. A point of negotiation may be whether you or your employer will pay for the tail coverage—after all, surely your new employer would rather have you working than distracted by a costly malpractice claim.
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September 2022Outside work. It’s important to know how much control your employer has over your work for organizations other than the employer. Contracts may have a provision in them that prevents you from providing medical services for anyone else but your employer, and this could prevent moonlighting, speaking, or even volunteering. Employers may have a legitimate reason to prevent you from doing these things, but if it’s important that you be able to engage in your specialty outside of the employment contract, you’ll need to head to the negotiation table.
If you have a specific request, your employer may grant it, or the employer may allow you to participate in certain activities under the condition that you remit all earnings from those activities to the employer. This may seem unfair but could give you leverage in future discussions about compensation increases.
Restrictive covenants. Restrictive covenants, also known as noncompete clauses, are common in employment contracts. Generally, a restrictive covenant limits what an employee can do after they leave their current job. For example, a physician who leaves a practice may have a restrictive covenant that prevents them from practicing medicine within a 50-mile radius of the current practice for two years after they leave their current job. A restrictive covenant may also prevent a physician from recruiting employees or patients away from the current practice.
Whether, and to what extent, a restrictive covenant will be enforced varies from state to state. Regardless, it’s important to review your contract for what you may or may not be able to do after your employment ends. Try to imagine how difficult it would be to make a living if you left this position. If you think it could affect your life or career path, it may be time to negotiate a reduced restriction, such as a smaller noncompete radius or a shorter lifespan of the covenant. A lawyer can help determine how your state will enforce a noncompete, giving you leverage during negotiations.
Employee vs. independent contractor. Another important consideration when reviewing your employment contract is whether you will be considered an employee or an independent contractor. A section in the contract will explicitly describe your relationship to the employer. From tax obligations, to having control over your work, to the stability of your employment, your employment status determines a lot. Review the description of the arrangement from a practical standpoint to determine if any deal-breakers are present.