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Chelle Law
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        • Can a Dental Associate Break Their Contract?
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        • Occurrence Based Insurance for a Dental Associate Explained | Different From Claims Made for Dentists
        • Dental Claims Made or Occurrence Insurance? (Professional Liability)
        • What is Tail Insurance for a Dentist? |  Malpractice Insurance for Dentists
      • Dental Non Compete Clause
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        • Dental Non Compete Mile Radius Explained | Non Compete for a Dentist
        • Dental Non Compete (How Long is ENFORCEABLE?)
        • Dentist Non Compete Restricted Offices Explained | Restrictive Covenants in Dental Practice
        • Is a Non-Compete Enforceable Against a Dentist? | Dentist Non Competition Enforceability
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        • Should a Dentist be Reimbursed for Moving Expenses? | Dental Expenses
        • What Expenses Should a Dental Practice Pay For a Dentist?: Dentistry Office Expense Costs for the Dentist to Be Reimbursed
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        • Dentist Independent Contractor vs Employee | Dental Employees vs Independent Contractors
        • Is a W2 or 1099 Better for a Dental Associate?
        • What Is a 1099 Dentist?
    • Nurse Practitioner Contract Attorney
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        • Can a Nurse Practitioner Break Their Contract?
        • How a Nurse Practitioner Should Negotiate a Contract
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        • What is the Most Common Nurse Practitioner Compensation Model?
        • What Needs to go in a Nurse Practitioner Termination Letter?
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        • Claims Made Insurance for a Nurse Practitioner Explained
        • How Much Does Tail Insurance Cost for a Nurse Practitioner?
        • Occurrence Based Insurance for a Nurse Practitioner Explained
        • Should a Nurse Practitioner Choose Claims Made or Occurrence?
        • Tail Insurance for a Nurse Practitioner Explained
      • Nurse Practitioner Non Compete Clauses
        • How Many Locations Should a Nurse Practitioner Non Compete Apply To?
        • Nurse Practitioner Non-Competes (ENFORCEABLE?)
        • Is a 2 Year Non Compete for a Nurse Practitioner Reasonable? | NP Non Compete
        • Nurse Practitioner Non-Compete (Is it ENFORCEABLE?)
        • Nurse Practitioner Non Compete vs Non Solicit
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        • Does a Nurse Practitioner Repay a Bonus if the Contract is Terminated?
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        • Nurse Practitioner Relocation (How MUCH Is Enough?)
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        • What is a 1099 Nurse Practitioner?
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          • ECFMG Certification Requirements | Certification Requirement
        • How Long Should a Physician Contract Be?
        • Should a Physician Accept an Arbitration Clause? | Medical Agreements
        • What is the Best Without Cause Termination Length in a Physician Contract? | Physician Dismissal
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        • 3 Ways a Physician Can Get Out of Paying for Tail Insurance | Medical Liability
      • Non-Compete Agreements
        • Is 10 Miles a Reasonable Restriction in a Physician Non-Compete?
        • Is a 2-Year Physician Non-Compete Too Long?
        • How Many Locations Should a Physician Non-Compete Apply to?
        • Is a Non-Compete Enforceable Against a Physician? | Physician Non-Compete
      • Medical Professional Contract Benefits
        • How Much Should an Employer Give a Physician for CME Expenses?
        • What Physician Business Expenses Should an Employer Pay For?
        • How Much Vacation Time Do Doctors Get?
        • Physician Relocation (How MUCH Reimbursement Should You Get?)
        • Hospital Sign on Bonus Pay Back | Repay a Bonus When Doctor Leaves?
        • Does A Physician Have to Repay Relocation Assistance If They Leave?
      • Independent Contractor Agreements
        • Can a Physician Be an Independent Contractor?
        • Physician Independent Contractor vs Employee
        • Is a W2 or 1099 Better for a Physician? | Physicians Contract
        • What is a 1099 Physician?
        • What Percentage of Physicians are Self-Employed?
    • Physician Assistant Contract Attorney
      • Physician Assistant Employment Contracts
        • Can a Physician Assistant Break Their Contract?
        • How To Negotiate a PA Contract (Better Salary TIPS)
        • Red Flags in a Physician Assistant Employment Contract?
        • How Are PAs Compensated? (2 BEST Ways To Get PAID)
        • What Should Go Into a Physician Assistant Termination Letter?
      • Physician Assistant Malpractice Insurance
        • How Much Does Tail Insurance Cost for a Physician Assistant? | Malpractice Insurance
        • Physician Assistant Malpractice Insurance (Do You NEED Claims Made?)
        • Tail Insurance for a Physician Assistant Explained
        • What is Claims Made Insurance for a Physician Assistant?
        • Occurrence Based Insurance for a PA (Malpractice Basics)
      • Physician Assistant Non Compete Clauses
        • How Many Locations Should a Physician Assistant Non Compete Apply To?
        • Is 10 Miles a Reasonable Non Compete for a Physician Assistant?
        • Is a 2 Year Non Compete for a Physician Assistant Reasonable?
        • Is a Non Compete Enforceable Against a Physician Assistant?
        • Physician Assistant Non Compete vs Non Solicit | Compete vs Solicitation
      • Physician Assistant Contract Benefits
        • Physician Assistant Sign-On Bonus (Will You Have to Give it BACK?)
        • How Much Paid Time Off Should a Physician Assistant Get?
        • Should a Physician Assistant be Reimbursed for Moving Expenses?
        • What Benefits Should Go In a Physician Assistant Offer Letter?
        • What Physician Assistant Expenses Should an Employer Pay For?
      • Physician Assistant Independent Contractor Agreements
        • Can a Physician Assistant be Self Employed?
        • Is a W2 or 1099 Better for a Physician Assistant?
        • Physician Assistant Independent Contractor Tax Deductions
        • Physician Assistant Independent Contractor vs Employee
        • What is a 1099 Physician Assistant?
    • Veterinarian Contract Attorney
      • Veterinary Associate Employment Contracts
        • Can You Break a Veterinary Associate Contract?
        • Veterinary Production Based Salary (Compensation Calculator)
        • How to Negotiate a Veterinary Associate Contract?
        • Red Flags in a Veterinary Associate Contract
        • What Should be in a Veterinary Associate Termination Letter?
      • Veterinary Malpractice Insurance
        • What is AVMA Excess Limit Coverage?
        • What is AVMA Veterinary License Defense Insurance?
        • What is Occurrence Insurance for a Veterinarian?
        • What is the AVMA PLIT?
        • Veterinary Malpractice Insurance (Do Vets NEED Tail Coverage?)
      • Veterinary Non Compete Agreements
        • How Many Locations Should a Veterinary Non Compete Apply To?
        • Is a Non Compete Enforceable Against a Veterinarian (ETHICAL?)
        • Veterinarian Non Solicit vs Non Compete
        • Veterinary Non Compete Mile Radius Explained
        • Veterinary Non Compete Time Limits Explained
      • Veterinary Professional Contract Benefits
        • How Much PTO Should a Veterinary Associate Get?
        • Veterinary Continuing Education (Is $2000 TOO Much?)
        • Veterinarian Sign-On Bonus (Must You Pay It BACK?)
        • Should a Veterinarian be Reimbursed for Moving Expenses?
        • What Veterinarian Business Expenses Should an Employer Pay For?
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        • Pros and Cons of Employment at a Corporate Veterinary Office
        • Should a Veterinarian be a W2 or a 1099?
        • Veterinarian Independent Contractor Tax Deductions
        • Veterinary Independent Contractor vs Employee
        • What is a 1099 Veterinarian?
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Physician Assistant Sign-On Bonus (Will You Have to Give it BACK?)

Does a physician assistant have to pay back their bonus if they terminate their employment agreement early? The answer to this is it’s likely. Now, again, every employment agreement is different but from our experience and most employment agreements that we have reviewed over the years, normally when there’s some type of bonus. And when I mean bonus, I’m talking about a sign-on bonus, commencement bonus, any type where you get a bonus upon signing or upon starting your employment, there’s normally some type of payback provision or payback language or forgiveness of the amount language in your employment agreement. So, you always want to make sure you read your benefits carefully.

Two Ways of Bonus Repayment Structure

When you’re offered these big sums of money upfront, it’s very attractive, but you want to make sure that you read the whole employment agreement because there is normally some type of language in there which requires you to pay back either the full amount or prorated amount. Let’s talk about that. Normally, there are two ways that this is structured. The first way is, if you terminate your agreement within a specific period, it’s normally anywhere between one to three years, and it will say in your employment agreement if you terminate your employment before then for any reason, you’ll have to pay back the full amount. Now, what’s dangerous about this and what you should look out for is when they say the full amount, when you receive that bonus, it’s considered income and therefore taxes are taken off the top. Let’s just say the bonus is 10,000, you’re not going to receive the full 10,000.

You’ll receive the amount of money minus any taxes. And when you have the language in your employment agreement that says if you terminate it before this specific period, you have to pay back the full amount, they mean the full amount. So, you want to be careful there. Now, it’s always best if it’s prorated, which means for every month, it’s normally a month. We’ll just say that for every month that you’re employed, a fraction of that amount is forgiven. So, if you’re there for, let’s just say the forgiveness period is one year and you’re there for six months, well, therefore, you’d only have to pay back half of that bonus. That’s a little bit more reasonable and fairer. I would always try to either have it prorated or have that restricted period go down to one year. I’ve rarely seen an employer go down lower than one year. And the reason why this is is to keep you. It’s like a retention incentive. Other topics of interest include:

  • Should a Physician Assistant be Reimbursed for Moving Expenses?
  • What Benefits Should be included in a Physician Assistant Offer Letter?

Relocation Allowance Structured as Bonus Repayment

The other thing you want to keep in mind is relocation expenses or a relocation allowance if it’s structured like a bonus, typically there always is some type of payback language in there or a period until it’s forgiven. So, you want to double-check that as well. So, relocation allowance, relocation bonuses, commencement bonuses, signing bonuses, and sign-on bonuses, look for that language. If you’re getting one of those, I’m almost positive that there’s somewhere in there that says that you must pay it back if you terminate your employment early. And then lastly, probably a little bit rarer is if you get any type of bonus for student loan forgiveness, I have seen that they may give you a lump sum upfront to pay back your student loans. And if you leave within a period, you must pay that back.

Basically, anytime your employer wants to hand you a big sum of money, there’s normally going to be some type of requirement. And it’s normally that you stay employed with them for a certain period. Otherwise, you’ll have to pay that back or a portion of that. These things can get a little stressful, so it’s always good to advise an attorney.

Relocation Expenses

Should a physician assistant be reimbursed for relocation expenses? The answer is yes, you should be reimbursed. If you are moving to a new area, out of state, across the state, or across the country, you should absolutely be reimbursed for those relocation expenses. However, it can look unique in your employment agreement. There are lots of different ways to structure this and I’ll go through the most common ones that I have seen. I’ll start off. The first way is probably the most common; it’s considered a relocation bonus, or they’ll call it a relocation allowance. And what this looks like is you’re normally offered anywhere from 10 to 20,000 upfront, the company will just, or your employer will pay you directly that amount of money.

And then you take that, and you use that for your relocation expenses. This however, because it’s considered a bonus and it’s really structured like a bonus, it’s considered income. Therefore, it’s taxed as income. You need to realize that if this is sort of the structure within your employment agreement, you’re not likely to receive that full amount. Taxes will be taken off the top. And you’ll want to also look at your employment agreement, especially if it’s structured this way. There’s normally some type of language in your employment contracts that state if you terminate your employment early within a one to three-year range, you will have to pay back that amount either in full or prorated. So, you want to be careful and make sure that you know what you’re signing, and you know what you are required to pay back if you terminate your employment early.

Relocation Reimbursement

So, that’s the first way, a relocation allowance. The second way is relocation reimbursement. They’ll give you a max of 10,000 or 20,000, they will reimburse you. And so, you will hire your movers or whatever you need to relocate, then you’ll take those receipts and invoices, and you’ll hand those to your employer, and then they’ll reimburse you directly for those. This also can be considered a bonus sometimes. So, you want to be careful. And then also, even if it’s structured this way where they’re reimbursing you, there’s normally some type of language that states that you have to stay employed for one to three years. Otherwise, they’ll make you pay back either a prorated amount or the full amount. You want to be careful about that too.

And then also, when you must provide receipts, you want to make sure you read your employment agreement very carefully or get prior authorization because you don’t want to spend money on relocation expenses only to find out that that’s something that’s not covered under your employment agreement and your employer will not reimburse you for those. So, that’s the second way. And then the third way, I would say it’s probably the rarest, but it is common. Your employer will pay directly to the moving company or whoever the company that’s helping you relocate. You must get prior authorization and then your employer will pay them directly. Again, even with this sort of situation, how it’s structured in your employment agreement, there’s normally a max. Again, anywhere from 10 to 20,000, and then there’s always normally something in there where you’ll have to pay back those expenses that they’ve reimbursed if you terminate your employment early. Just some tips: it’s helpful to try to renegotiate that time down. 

So, before you sign your employment agreement you can try to lower that time. I always try to negotiate for one year. I don’t like them to go for much more than one year. And then also, if they’re not willing to do that, then to prorate it. For each month that you stay employed, a fraction of that amount will be forgiven. That way, if you stay with the company almost up until that date, but God forbid something happens and you need to move, leave, or terminate your employment, you don’t have to pay back the whole amount. To me, that’s more reasonable. You want to try to negotiate down either the time that the amount is forgiven or ask for it to be prorated. You also need to take into consideration when you accept a relocation allowance or bonus, that it’s taxed as income, and most of your employment agreements will state that you have to pay back the entire amount or the entire amount is prorated, even though you didn’t receive the full amount.

Because again, remember that if it’s structured like that, taxes will be taken out of that amount. So, you’re not actually receiving the full bonus. Sometimes you can get it negotiated where it says minus any taxes incurred. But normally, your employer will not want to put that language in there. So, it’s better to just go for the shorter period of forgiveness or tap it prorated. 

When to Get Out Upon Termination of the Physician Employment Agreement

Can a physician assistant break their contract? The answer is yes, they can. However, if breaking their contract means that they’re breaching it, they’re not adhering to the terms that they agreed upon, they may have some legal or financial consequences that you will want to consider before making that decision. So, before you break the contract, there are normally lots of different ways that you can be led out of your contract. You always want to go to your employment agreement and read it very carefully. There are normally many clauses on termination. Your employer can terminate your agreement for cause if you have violated some policies, you’ve lost your license of practice, or you’re convicted of a crime. There’s normally enumerated the list there.

And if any of that happens, then your employer will terminate the agreement. Another way you can be let out of your employment agreement is a without cause termination. Most employment contracts and you want to read yours carefully, will have a clause in there that says you may terminate your employment without cause. It can be for any reason or no reason at all upon giving a certain amount of notice. The range can be anywhere from 60 to 90 days. Occasionally, if you’re in a rural area or a high-need area, sometimes it can go up to 120 days. If you want out of your contract, you need to give written notice and it needs to be given properly. Again, this can be a little unique to each situation, so you want to look at the employment agreement and it will state how you need to give proper notice.

It’s usually always in writing, it can be hand-delivered to certain personnel, sometimes it must go through certified mail, other times you’re able to email it to certain personnel as well. So, just make sure you give your notice properly and you give your notice at the appropriate time. Like we talked about, it’s normally 60 to 90 days and then you can be let out of your agreement, that’s the best way to do it. However, even if you do it this way, there still might be some financial consequences. If you received any type of sign-on bonus or relocation bonus or reimbursement, those types of bonuses when you’re given a lump sum upfront whenever you’re starting your employment, normally have some sort of requirement that you must complete a certain period with the company. This is normally anywhere from one to three years.

And if you terminate your employment for any reason within that time, you may have to pay back that entire bonus, or you may have to pay back the bonus at a prorated amount which means however many months you’ve been there, a portion of that amount is forgiven. You always want to be careful that you’re not just breaching the contract. Again, because even if you breach the agreement, there may be something in your contract called liquidated damages or something about damages. Meaning, if you break this agreement and you don’t give proper notice, you will have to pay your employer tens of thousands of dollars. So, this is something you always want to look out for. I do see this in about 50% of all the contracts that I review, so you want to be careful. Breaking a contract is serious. So, I always recommend consulting an attorney. That’s something we do here at our firm to make sure that you are terminating your contract properly.

When to Terminate the Medical Contract

What are some red flags in physician assistant contracts? Sometimes the red flags are the words on the page, but other times red flags are missing. I’m going to kind of go over the most common red flags that I see. The first one would probably be unreasonable non-compete clauses. Depending on your state, most states’ non-compete clauses for healthcare providers are enforceable, but you do want to check your state law. If they are enforceable, you want to check is it reasonable? What I mean by that is, normally, a non-compete clause will be anywhere from one to two years. I always try to advocate for at least one year only, not over a year.

One year, it should be, or less. It could be six months, that would be great. And then you want to look at the restricted area. Typically, it goes by miles and it kind of depends. You must take into consideration where you’re located and what your makeup looks like. Like, are you in a rural area? Are you in a city? And then you want to see, okay, is this mileage unreasonable? Really anything over 30 miles is going to be, in my opinion, unreasonable. And I would try to negotiate that down. So, we’ve talked about how long they’re for, and then how much is included in that restricted area from competing with your employer. The other thing you want to look for is how many locations does that restricted radius apply to? This is a little tricky and a lot of times employers try to slip this in there.

They may say or have language in there that states any location of the practice with the company, or they’ll say any location you provide services at. That means if you fill in for a provider that’s on vacation, you’re a non-compete clause now attached to that location. Let’s just say you have 10 miles from your primary location, but now you could have 10 miles attached to multiple other locations. This is dangerous especially if let’s say the company expands while you work for them. And it could knock out a huge chunk of the state. You may have to move if you decide to end your employment. So, overly restrictive non-compete is a red flag. The other thing you want to look for in a non-compete itself is what services are you restricted from? 

Consultation with Chelle Law Attorneys 

A contract attorney is extremely helpful at this stage of the process because he or she can make sure that everything that you have negotiated so hard for is truly added to your new contract. They will check the contract line-by-line to verify that your employer has met the terms that you believe they have. The negotiation process can be lengthy, and no one wants to give up the ground that they have fought so hard to win in the first place. Thus, it just makes sense to have an attorney look over everything when it is completed. 

Our bottom line is to help physician assistants get the salary and benefits that they deserve, and we will fight for that mission.

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Based on 174 reviews
Destinee Hamlet
Destinee Hamlet
2023-01-31
Everyone was very helpful and professional. Felicia answered all my questions and made the process super easy and stress free.
Gabriela Martinez
Gabriela Martinez
2023-01-29
Definitely recommend! I’m a nurse practitioner and was able to renegotiate my contract with the help of Chelle Law. The outcomes were above expectations.
Linda Price
Linda Price
2023-01-27
I placed my trust in Chelle Law to handle my issue with the State Board of Nursing and they did not disappoint. Service was professional and courteous. I could not have asked for a better outcome. I highly recommend this firm!
Anni R
Anni R
2023-01-25
I had a great experience with Chelle Law. I’m so glad I found them and hired their services. Their communication was on point 👌 they’re very professional, always kept me updated, always returned my calls and emails in a timely manner. They’re compassionate and understanding of every situation. I would 100% use them again and refer them to anyone.
Chin Kim
Chin Kim
2023-01-24
Great hep overall. Fast response and even it was an hour review, the attorney stayed on the phone longer to answer all my questions.
Amelia
Amelia
2023-01-20
Booking the consultation was easy and I got all my questions answered! Excellent customer service.
Steven Yang
Steven Yang
2023-01-18
I am a veterinarian about 3 years+ out from school changing jobs for the first time since graduating . The idea of needing to closely review a contract was foreign to me and I honestly had no idea what I would be signing . Luckily I found Chelle law and worked with Erin who put all my worries at ease . She took the time and even went over our scheduled time slot to review / translate every section of my contract and make valuable suggestions that I could bring up to my future employer. Throughout our discussion it was clear to me that Chelle law is very familiar with the intricacies of a veterinary contract and what it typically should entail. I was very pleased with my experience .
Tiffany Efantis
Tiffany Efantis
2023-01-11
I used Chelle law for a non-compete clause review. I was referred to them by a friend. They were helpful, quick, and affordable for what I needed. I will definitely use them again for any employment contract review in the future!
Nicholas Peracchio
Nicholas Peracchio
2022-12-13
Erin was so thorough with my contract I felt extremely confident in my negotiations and ended up getting everything I wanted and more! I can’t recommend her enough. She took her time and made sure I understood everything I was signing and did so with a kind and caring demeanor. Thanks so much Erin!!
Seth Bricel
Seth Bricel
2022-12-13
I needed a lawyer to review my partnership contract and Chelle Law provided a great experience at a fair price. My lawyer thoroughly explained the meaning of the contract in terms I could understand and provided valuable perspective as to which parts were normal and which parts were atypical or in need of modification. Thanks to their help, I've reached a contract that I and my partners are very happy with!

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