FIVE FAQs REgARdINg EMPLOYMENT
CONTRACTS
By Barbara Hensleigh, Esq.
Signing a contract always takes careful consideration. This is
even more true when entering into a professional
employment relationship. Having reviewed more than 100
physician employment agreements, I know well the most
frequently asked questions. The top five questions are:
1. Do I need an outside review of the contract?
2. Can I be employed full-time at a medical group as
an independent contractor?
3. Who is responsible for paying insurance tail
coverage upon termination of the employment?
4. What are the differences between
non-competition clauses and non-solicitation
clauses?
5. Can you explain the interplay between the term of
the agreement and the no-cause termination
clause?
1. do I Need an Outside Review of My
Employment Contract?
Let’s face it: Many physicians sign contracts without reading
them, much less having outside counsel review the
agreement. You are just too busy. Moreover, the contracts
may be take it or leave it. The employer may be unwilling to
change the terms and lose uniformity in contractual language
among its employee physicians.
But there are plenty of reasons to spend the time and money
for an outside review. First, it is good to know your obligations
up front. For example, many employers incorporate into their
contracts their general policies and procedures and contracts
between the employer and managed care plans. By
incorporating these documents into the agreement, the
employer has made their terms — which you probably have
yet to see — legally binding on you. Knowing the policies and
procedures and managed care agreements are contractual
commitments by you may encourage you to read and
understand the policies and procedures and other agreements
so you know what is expected of you.
Second, many contracts contain illegal terms. These terms
would not be enforceable in a court of law and thus are not
legally binding on you regardless of your signature on the
contract. One common example is a term permitting your
emplo