A dental associate contract should clearly address how the dentist is paid, whether compensation is based on production or collections, lab fee deductions, scheduling and work locations, malpractice and tail insurance, termination rights, restrictive covenants, post-termination compensation, unfinished treatment, and any promised path to ownership. Dentists should pay particular attention to terms that affect what happens after the relationship ends, including non-competes, bonus repayment obligations, tail coverage, and whether the associate receives collections after leaving. Because employment and restrictive-covenant laws vary by state, dentists should also determine whether important provisions are enforceable under the law governing their agreement.
A dental associate agreement can have a significant impact on a dentist’s compensation, career flexibility, and future opportunities. Yet many dentists sign their first associate agreement without fully understanding provisions governing compensation, restrictive covenants, termination, malpractice insurance, ownership opportunities, and what happens when the relationship ends.
Practice owners face the other side of the equation. A poorly drafted associate agreement can create disputes over compensation, patient relationships, confidential information, restrictive covenants, and termination.
Whether you are a dentist considering an associate position or a dental practice hiring an associate, the agreement should clearly establish the expectations of both parties before the relationship begins.
Below are 15 of the most important issues dentists should consider when reviewing a dental associate agreement.
What Is a Dental Associate Agreement?
A dental associate agreement is a contract between a dentist and the dental practice where the dentist will work. Depending on the relationship, it may be structured as an employment agreement or independent contractor agreement. It typically addresses compensation, scheduling, professional responsibilities, malpractice insurance, termination, restrictive covenants and other terms governing the relationship. For many dentists, the agreement also determines important post-employment issues, including where the dentist may practice after leaving and whether compensation continues for previously performed treatment.
What Should a Dentist Look for in an Associate Agreement?
A dentist reviewing an associate agreement should look beyond the stated salary or percentage compensation. Important provisions include how compensation is calculated, whether the dentist is paid on production or collections, which expenses are deducted, benefits, scheduling expectations, malpractice insurance, termination rights, restrictive covenants, patient records, treatment responsibilities after termination, and any potential path to practice ownership.
The agreement should also clearly explain what happens when the relationship ends. A contract that looks attractive while the dentist is employed may become significantly less attractive if it restricts where the dentist can work, requires repayment of bonuses, or creates unexpected insurance or patient-care obligations after departure.
How Are Dental Associates Typically Paid?
Dental associate compensation structures vary considerably. An associate may receive a fixed salary, daily guarantee, percentage of production, percentage of adjusted production, percentage of collections, or some combination of these methods.
The percentage alone does not tell you whether the compensation arrangement is favorable.
For example, an agreement paying 30% of collections may produce a very different result from one paying 30% of production. The contract should define exactly what counts toward compensation and when it is credited to the associate.
Dentists should also determine whether compensation calculations exclude or deduct items such as:
- Lab expenses;
- Refunds;
- Discounts and write-offs;
- Insurance adjustments;
- Uncollected accounts;
- Remakes or retreatment;
- Hygiene services; and
- Procedures performed jointly with another provider.
If compensation is based on collections, the agreement should also address what happens to money collected after the associate leaves the practice for services the associate performed while employed.
Production vs. Collections: What’s the Difference?
Production generally measures the value of dental services performed by the associate, while collections measure the money the practice actually receives for those services.
That distinction matters.
Suppose an associate produces $100,000 of dentistry during a particular period but the practice collects only $85,000. An associate earning 30% of production may have $30,000 of compensation attributable to that work, while an associate earning 30% of collections may have only $25,500.
Neither model is inherently right or wrong. What matters is understanding which number controls, how it is calculated, and which adjustments the practice may make before applying the associate’s percentage.
What Is Adjusted Production in a Dental Associate Agreement?
“Adjusted production” generally means the value of the dental services an associate performs after certain reductions or adjustments are made. The important issue is that there is no single universal definition of adjusted production—the agreement should explain exactly how it is calculated.
Example: An associate produces $100,000 during a month and receives 30% of adjusted production. If the practice makes $15,000 in permitted adjustments (write-offs, refunds, etc) before calculating compensation, the associate’s compensation is based on $85,000, not $100,000.
Dentists should therefore look beyond the percentage stated in the agreement and ask: 30% of what? The contract should clearly define which adjustments may be made, when they are made, and whether the practice has discretion to change the calculation. A seemingly attractive compensation percentage can be significantly less valuable if “adjusted production” is broadly or vaguely defined.
Should a Dental Associate Receive a Daily Guarantee?
Many associate agreements provide a guaranteed daily rate, particularly when an associate is joining a new practice or building a patient schedule.
The agreement should specify whether the guarantee is a true minimum or merely an advance against future production-based compensation.
For example, “$800 per day or 30% of adjusted production, whichever is greater” operates differently from an $800 daily draw that is later reconciled against production.
Associates should also look for provisions allowing the practice to eliminate the guarantee after a certain period. If the dentist is relying on guaranteed compensation while developing a patient base, the duration and mechanics of that guarantee can be just as important as the amount.
4. Who Pays Dental Lab Fees?
Dental lab fees are a common source of confusion in associate compensation.
Some practices pay all laboratory expenses. Others deduct some or all lab expenses attributable to the associate before calculating compensation. Still others require the associate to bear a percentage of certain lab expenses.
There is no substitute for precise drafting here.
If lab expenses affect compensation, the agreement should explain which expenses qualify, how they are allocated, and whether they are deducted before or after the associate’s compensation percentage is applied.
This can be especially significant for dentists performing substantial restorative, implant, prosthodontic, or cosmetic work.
5. Should a Dental Associate Be an Employee or Independent Contractor?
Calling a dentist an “independent contractor” in an agreement does not necessarily make the dentist an independent contractor.
Worker classification generally depends on the actual relationship between the dentist and the practice, including the degree of control exercised by the practice and other applicable federal and state-law factors.
Classification matters because it can affect payroll taxes, benefits, insurance, employment protections, and other obligations.
Practice owners should therefore avoid choosing independent-contractor status simply because it appears less expensive or administratively easier.
Related: Masters Law Group’s guide to Independent Contractor vs. Employee in a Dental Practice: What Dentists Get Wrong.
6. What Should the Agreement Say About Working Hours and Scheduling?
An associate agreement should establish the dentist’s expected schedule while preserving enough flexibility for the realities of operating a dental practice.
Important questions include:
- Which days is the associate expected to work?
- Are minimum hours or days required?
- Can the practice change the schedule?
- Is the associate required to work evenings or weekends?
- Is there a minimum production expectation?
- Can the associate work at multiple practice locations?
- Can the associate maintain another dental position?
These provisions become particularly important when an associate is paid primarily on production. A generous compensation formula means considerably less if the practice does not provide sufficient patient volume or chair time for the associate to generate production.
7. Who Pays for Malpractice Insurance?
The agreement should identify who is responsible for obtaining and paying for professional liability insurance and what coverage limits are required.
Dentists should also determine whether the policy is occurrence-based or claims-made.
With claims-made coverage, additional coverage may be necessary after the relationship ends for claims arising from services performed during employment. This is commonly referred to as tail coverage.
The associate agreement should clearly state who is responsible for purchasing any required tail coverage. Depending on the policy and the dentist’s circumstances, this can represent a meaningful expense at the end of employment.
8. What Happens to Unfinished Dental Work When an Associate Leaves?
This is one of the provisions dental practices sometimes overlook.
When an associate leaves, there may be patients in the middle of crowns, implants, orthodontic treatment, dentures, aligners, or other multi-stage treatment.
The agreement should address how those patients and related compensation will be handled.
It may also need to address responsibility for remakes, retreatment, refunds, or corrective work involving treatment originally performed by the departing associate.
Clear rules established at the beginning of the relationship can prevent significant disagreement when the relationship ends.
9. Can a Dental Associate Be Required to Sign a Non-Compete?
Restrictive covenant law varies substantially by state and continues to evolve. Some states permit appropriately limited non-compete agreements, some impose significant restrictions, and others prohibit or severely limit them in certain employment relationships or professions.
Accordingly, dentists should not assume a non-compete is enforceable merely because it appears in a signed agreement.
Where permitted, dentists should pay particular attention to:
- The geographic radius;
- The duration;
- Which practice locations trigger the restriction;
- Whether the restriction applies to all dentistry or particular services;
- What happens if the practice terminates the associate without cause; and
- Whether the restriction applies if the practice breaches the agreement.
For dentists working at multiple locations, the way the geographic restriction is measured can be particularly important.
What Is a Dental Associate Non-Solicitation Provision?
A non-solicitation provision is different from a traditional non-compete.
Rather than prohibiting the associate from practicing dentistry within a geographic area, it may restrict the associate from soliciting the practice’s patients or employees after leaving.
The agreement should define what constitutes prohibited “solicitation.”
For example, there may be an important distinction between actively contacting patients and a former patient independently locating the dentist’s new practice.
Dentists should also review provisions concerning patient lists, contact information, confidential information, marketing, social media, and announcements regarding the dentist’s departure.
Applicable state law and professional obligations should always be considered.
How Can a Dental Associate Agreement Be Terminated?
One of the most important provisions in any associate agreement is the termination provision.
Many agreements allow either party to terminate the relationship without cause by providing advance written notice, often within a specified notice period.
The agreement may also permit immediate or accelerated termination “for cause” following specified events.
Dentists should understand:
- How much notice is required;
- Whether both parties have equal termination rights;
- What constitutes “cause”;
- Whether certain breaches have a cure period;
- Whether compensation continues during the notice period;
- Whether the practice can remove the dentist from the schedule immediately; and
- What obligations survive termination.
A contract’s termination provisions often matter far more than its stated initial term.
What Happens to Compensation After the Associate Leaves?
An associate may have performed significant dentistry shortly before leaving the practice for which payment has not yet been received.
If compensation is based on collections, the agreement should explain whether the associate continues receiving compensation from collections received after termination.
It should also establish how final compensation is calculated and when it must be paid.
Other issues may include outstanding bonuses, refunds, chargebacks, lab expenses, treatment adjustments, and amounts the practice claims the associate owes.
These provisions deserve particular attention because once the relationship ends, the parties’ interests may no longer be aligned.
Who Owns the Patient Records?
Generally, the dental practice—not the individual associate—maintains the practice’s patient records, subject to applicable law and professional requirements.
The associate agreement should address patient information, confidentiality, record access, and the dentist’s obligations following termination.
However, ownership of records does not eliminate a dentist’s professional obligations concerning patient care or access to information that may be required to respond to a malpractice claim, licensing-board inquiry, or other proceeding.
The agreement should therefore balance the practice’s legitimate ownership and confidentiality interests with the associate’s legitimate need for appropriate access where legally necessary.
Should a Dental Associate Agreement Include a Future Buy-In?
If the practice owner and associate anticipate that the associate may eventually become an owner, the agreement should address that expectation carefully.
A vague statement that the associate “may have an opportunity to buy in” generally does not establish meaningful economic terms.
Potential issues include:
- When the associate becomes eligible;
- How the purchase price will be determined;
- What percentage may be purchased;
- Whether real estate is included;
- How goodwill is valued;
- Whether financing will be available;
- How management rights will work; and
- What happens if the parties cannot agree on a valuation.
Not every associate agreement needs a complete buy-in formula. But if future ownership is a major reason the associate is accepting the position, the agreement should not create expectations that are materially different from the parties’ actual understanding.
Should a Dentist Have a Lawyer Review an Associate Agreement?
For many dentists, yes.
A dental associate agreement is more than an employment contract. It can determine how the dentist gets paid, where the dentist can practice afterward, who bears malpractice insurance costs, what happens to compensation after departure, and whether a promised path to ownership actually exists.
An attorney familiar with dental transactions can also identify provisions that may look ordinary in a general employment agreement but operate differently in a dental practice.
Ideally, an associate agreement should be reviewed before it is signed, while the dentist still has the ability to clarify or negotiate important terms.
Dental Associate Agreement Checklist
Before signing a dental associate agreement, a dentist should be able to answer each of these questions:
- Am I an employee or independent contractor?
- How exactly is my compensation calculated?
- Am I paid on production or collections?
- Are lab fees or other expenses deducted?
- Is there a daily or monthly guarantee?
- What schedule am I required to work?
- Who pays for malpractice insurance?
- Could I be responsible for tail coverage?
- Is there a non-compete?
- Is there a patient or employee non-solicitation provision?
- How much notice must I give before leaving?
- Can the practice terminate me immediately?
- Do I receive collections after I leave?
- What happens to unfinished cases and remakes?
- Is any promised ownership or buy-in opportunity actually documented?
If you cannot confidently answer those questions after reading the agreement, there are probably provisions worth clarifying before you sign.
Dental Associate Agreements Are Negotiable
Dentists sometimes assume an associate agreement is a standard form that cannot be changed. That is not necessarily the case.
The amount of negotiating leverage available to either party will depend on the circumstances, but compensation is not the only provision worth discussing. Restrictive covenants, termination rights, malpractice insurance, scheduling, outside employment, post-termination collections, lab fees, and future ownership opportunities can sometimes be just as important.
The goal is not necessarily to negotiate every provision.
The goal is to understand the agreement well enough to identify the provisions that could materially affect the dentist or the practice—and address those issues before they become disputes.
Dental Associate Agreement FAQs
What should I look for in a dental associate contract?
A dental associate contract should clearly explain how you will be paid, what you are expected to do, and what happens when the relationship ends. Key provisions include compensation and how production or collections are calculated, lab fee deductions, work schedule and locations, benefits, malpractice and tail insurance, termination rights, restrictive covenants, signing bonus repayment, post-termination compensation, and responsibility for unfinished treatment. Dentists should also carefully review any language regarding future ownership or a practice buy-in. The compensation percentage matters, but the provisions surrounding it can have an equally significant financial and professional impact.
Can I negotiate my dental associate agreement?
Yes. Dental associate agreements are often negotiable, although the amount of leverage a dentist has will depend on the practice, market, experience level, and circumstances. Compensation is only one area to consider negotiating. Dentists may also want to address restrictive covenants, termination notice, work locations, scheduling, lab fee deductions, malpractice and tail coverage, signing bonus repayment, post-termination collections, and future ownership opportunities. The goal does not have to be changing every provision. Instead, focus on the terms that could materially affect your compensation, career flexibility, or obligations if the relationship ends.
Should a dentist have an attorney review an employment contract?
For many dentists, having an attorney review an associate agreement before signing is worthwhile. A dental employment contract can affect how much you are actually paid, where you can practice after leaving, whether you owe money back to the practice, who pays for tail insurance, and how easily you can terminate the relationship. An attorney familiar with dental agreements can also identify issues that may not be obvious from the compensation percentage alone. Ideally, the agreement should be reviewed before it is signed, while there is still an opportunity to clarify ambiguous terms or negotiate important provisions.
How much does dental associate contract review cost?
The cost of reviewing a dental associate agreement varies depending on the attorney, the length and complexity of the agreement, applicable state law, and whether the engagement includes only legal review or also redlining and negotiation with the employer. A straightforward contract review will generally cost less than an engagement involving multiple rounds of revisions or negotiations. When comparing legal fees, dentists should also determine what the quoted fee actually includes—for example, a consultation, written comments, a redline of the agreement, and assistance negotiating proposed changes.
How long does a dental contract review take?
The time required to review a dental associate contract depends on the agreement’s length and complexity, the attorney’s availability, and whether revisions or negotiations are required. A legal review may be completed relatively quickly, while negotiating changes with a practice can take longer. Dentists should therefore avoid waiting until the day before an agreement is due to request legal review. If a practice provides a signing deadline, consider having the agreement reviewed early enough to understand the terms, ask questions, propose changes if necessary, and make an informed decision before signing.
Are dental associate non-competes enforceable?
It depends on the state and the specific agreement. Non-compete law varies significantly by jurisdiction, and some states prohibit or substantially restrict employment non-competes while others may enforce appropriately limited restrictions. Where non-competes are permitted, enforceability may depend on factors such as duration, geographic scope, the interests being protected, and applicable state law. Dentists should pay particular attention to how the restricted area is calculated when they work at multiple offices. A provision appearing in a signed contract should not automatically be assumed enforceable—or unenforceable—without considering the law that applies to that particular agreement.
What happens if I want to leave my dental associate job?
Start with the termination provision in your associate agreement. Many dental contracts permit an associate to terminate without cause by providing a specified amount of advance written notice. The agreement may also establish how notice must be delivered and what obligations continue after termination. Before giving notice, dentists should review provisions concerning restrictive covenants, patient and employee solicitation, signing bonus repayment, tail insurance, post-termination collections, unfinished treatment, confidential information, and return of practice property. Leaving without providing contractually required notice could potentially constitute a breach, so it is important to understand the agreement before resigning.
Who pays for tail malpractice insurance when a dental associate leaves?
The answer depends on the malpractice policy and the associate agreement. Tail coverage is generally relevant when professional liability insurance is written on a claims-made basis and coverage is needed for certain claims made after the underlying policy ends. An associate agreement may require the practice to pay for tail coverage, require the dentist to pay for it, or allocate the cost depending on why the relationship ended. Because tail coverage can be a significant expense, dentists should understand this obligation before signing rather than discovering it when they leave the practice. An occurrence-based policy generally does not require traditional tail coverage in the same way.
Need a Dental Associate Agreement Reviewed?
Masters Law Group works with dentists and dental practices on transactional matters, including dental associate agreements, practice acquisitions and sales, partnership and buy-in arrangements, and other contracts affecting dental practices.
If you are considering an associate position, hiring a dentist, buying into a practice, or preparing for practice ownership, having the agreement reviewed before signing can help identify issues while there is still time to address them.
This article provides general information and is not legal advice. Employment, restrictive covenant, professional licensing, and other laws vary by jurisdiction. Dentists should consult qualified counsel regarding their particular agreement and applicable state law.
This post was written by Amber Masters, Esq. Amber is a business and transactional attorney who represents dentists and dental practices in associate agreements, practice acquisitions and sales, ownership transitions, and other business transactions.
Published September 2026 | Last reviewed September 2026