Many dental employment agreements include a non-compete clause. Also known as a restrictive covenant, this mechanism purportedly prevents an employee from engaging in similar business, whether independently or for another employer, after leaving the current employer.

In order to be valid, a non-compete clause is almost certainly limited to:

• A certain period of time
• A certain geographic area

The employer wants to protect the practice from an employee-dentist who utilizes the contacts and experience gained through the employment to establish a competing practice. The justification for requiring the post-employment restriction is that the employer has invested energy, time, and money in building the practice and therefore needs the restriction to preserve its business and avoid helping “create” a competitor through the employment.

Depending on the duration, the geographic scope, and the reason for termination of the employment relationship (which may be at the whim of the employer), a non-compete can pose a substantial constraint on a dentist’s future career options — and even limit where you might live. See What Went Wrong: My Restrictive Covenant Was Too Restrictive for more details and two scenarios.

Considerations for a dental non-compete agreement

If you are presented with a contract with a non-compete clause, be sure to examine every element. Remember that you can negotiate these terms.

Substance
What is the substance of the prohibition? (i.e., what exactly does the...

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