Legal Drafting, Review, & Negotiation of Dental Associate Agreements

Unlike standard employment contracts, dental associate agreements must address the unique realities of dentistry: production-based compensation, patient assignment, and long-term career planning. These agreements are more complex than simple employment documents because they must consider both practice profitability and associate autonomy.

A poorly drafted agreement can lead to confusion over pay, disputes about patient care, or even litigation. A well-structured contract, on the other hand, sets clear expectations and helps both sides build a sustainable professional relationship.

One of the most critical elements of any associate agreement is how compensation will be calculated. In Los Angeles, compensation models for associates typically include:

• Base Salary: A guaranteed income that provides financial stability, often combined with performance incentives.
• Production-Based Pay: Associates earn a percentage of collections or production, rewarding efficiency and clinical output.
• Hybrid Models: A blend of salary and production pay that balances security with performance incentives.

The agreement should spell out how production is calculated, what adjustments are made for insurance write-offs, and how disputes about collections will be resolved. Clear terms help avoid misunderstandings and ensure both the associate and practice owner are on the same page.

Associate agreements should go beyond pay—they should clarify what is expected of the associate. This includes:

• Work Schedule: Number of days per week, hours per day, and on-call responsibilities if applicable.
• Clinical Duties: Types of procedures expected, limits on scope of practice, and supervisory roles.
• Patient Allocation: How patients are assigned (e.g., new patients, overflow from senior doctors, or referrals).
• Professional Development: Opportunities for continuing education and support for skill advancement.

Defining these expectations avoids tension between associates and owners while supporting patient satisfaction.

Dental practices are business enterprises, and associate productivity often drives profitability. For that reason, agreements often include production clauses that tie compensation to performance benchmarks.

However, these clauses must be drafted carefully. Key considerations include:

• Collections vs. Production: Will compensation be based on billed services or actual payments received?
• Adjustments: How insurance write-offs, lab fees, and refunds affect calculations.
• Reporting: How performance will be measured and communicated to the associate.

At Polished Legal, we work to ensure that production clauses are not only enforceable but also equitable, reflecting the realities of dental practice operations.

Many associate contracts include restrictive covenants such as non-compete or non-solicitation provisions. While California law generally prohibits non-compete clauses, non-solicitation and confidentiality agreements can still play a role in protecting patient relationships and practice goodwill.

For Los Angeles dentists, it is important that these provisions are narrowly tailored to comply with California law while still safeguarding legitimate business interests. Overly broad restrictions risk being unenforceable—or worse, leading to legal disputes.