Top 5 Contract Clauses That Can Cost New Dentists the Most Money

• •If you need more job offers, get them by making a free account and get found by employers. And if you want to know what questions to ask in the interview, go here.
• •Some of the biggest hits to your paycheck do not come from the salary line. They hide in a few short contract clauses.
• •Here are five to watch closely.

1. Lab fee deductions

What it means

• •The contract says you pay some or all lab fees, often “before” your percentage is calculated.

Why it can cost you

• •If labs are deducted first, your true rate on lab‑heavy work is lower than your contract percentage.

Simple example

• •Crown fee 1,200, lab fee 200, contract 30% “after lab fees.”
• •Pay base = 1,200 − 200 = 1,000.
• •30% of 1,000 = 300 instead of 360.
• •Do that 20 times a month and you lose 1,200/month, over 14,000/year.

What to ask before signing

• •“Who pays lab fees, and are they taken out before or after my percentage is calculated? Can you show me that in the contract and walk through one sample crown?”

2. Production vs collections wording

What it means

• •You might be paid on “production,” “adjusted production,” or “collections,” and small wording changes move real money.

Why it can cost you

• •Adjusted production subtracts write‑offs and discounts before your percentage.
• •Collections pay depends on how much actually gets collected and how fast. Simple example
• •You produce 700k in a year.
• •If 80% ends up collected after write‑offs (560k), 30% of collections pays 168k. If you thought 30% of 700k (210k), that gap is 42k.

What to ask before signing

• •“Is my percentage based on gross production, adjusted production, or collections? What typical percentage of production ends up collected here for associates?”

3. Non-compete limits

What it means

• •The non‑compete clause controls where and how soon you can work after you leave.

Why it can cost you

• •A broad non‑compete can block better offers nearby, force you to move, or push you into a long commute that eats time and money.

Simple example

• •“20‑mile radius from any location owned by the practice for two years.” If you want to switch jobs but stay in that city, you may not be able to see patients anywhere nearby.

What to ask before signing

• •“What exact address does the non‑compete apply to, what radius, and for how long? Can this be narrowed to one office, a smaller radius, and a shorter time?” Then have a dental attorney review it.

4. Termination and notice rules

What it means

• •The clauses that say how and when either side can end the agreement, and how much notice is required.

Why it can cost you

• •A long notice period or one‑sided termination rule can delay a better job and cost you months of income or force you to stay in a bad situation.

Simple example

• •Your contract requires 120 days’ notice to leave, but the new job you want needs you in 60 days. You might have to turn it down or go unpaid between jobs to honor the contract.

What to ask before signing

• •“What notice do I have to give, what notice do you have to give, and are there any penalties if I leave earlier than that?” Aim for a mutual, reasonable notice (often closer to 60 days), but still have an attorney weigh in.

5. Repayment clauses for bonuses, CE, or moving costs

What it means

• •Money the practice gives you up front (signing bonus, relocation help, CE) that you may have to pay back if you leave “too soon.”

Why it can cost you

• •The bonus feels like free money now, but the payback can be painful if the job is not a good fit and you need to leave early.

Simple example

• •You get a 20,000 signing bonus with a clause that says if you leave before two years, you owe all 20,000 back within 30 days. If the job is toxic at 9 months, that clause can trap you or force you to come up with cash fast.

What to ask before signing

• •“What bonuses, CE, or relocation costs do I have to repay if I leave, and is the payback prorated over time?” A prorated schedule (for example, 50% after one year, 0% after two) is usually more reasonable than an all‑or‑nothing payback.

How to handle money-heavy clauses

You do not have to decode every clause alone. But you should never sign without understanding the ones that directly move real dollars:

• •Lab fee deductions.
• •Production vs collections wording.
• •Non‑compete limits.
• •Termination and notice rules.
• •Repayment clauses.

Ask for clear, written answers, then have a dental attorney review the contract. After that, plug the pay formula, lab rules, and any payback terms into Bonded’s tools so you can see how much these clauses change the real value of the offer over the next couple of years before you sign.