Employee Contract Sample

The following is an example of a few sections out of the Employee Contract - Professional Staff. Below that are the same sections from the contract, but this time from the "annotated" version. The text in italics (blue) is the "annotation." The annotations are instructions and information to you regarding the preceding paragraph.

6. Standards of Practice and Compliance with Laws. In carrying out the duties under this Agreement, Employee, at all times, shall comply with the standards of optometric practice in the community and with all applicable statutes, rules and regulations of any and all governmental authorities. Employee acknowledges that he / she is required to have obtained and to maintain all professional licenses necessary for him / her to carry out his / her duties under this Agreement. Employee shall notify Employer within twenty-four (24) hours of the commencement or conclusion of any action or proceeding to restrict, suspend or revoke his / her license to practice optometry in the State of _____________________.

7. Assignment of Fees. Employee shall be compensated by Employer for Employee's services pursuant to Section 3 of this Agreement. Employee hereby authorizes and requests that Employer bill patients and/or insurance companies and third party payers for the services rendered by Employee and Employee hereby assigns directly to Employer all fees earned for providing services to such patients. Said assignment shall include, but not be limited to, payments received from Workers' Compensation, private insurance and self-insured employers.

8. Medical Records. Employee acknowledges and agrees that all patient files and medical records created, compiled, supplemented or modified by Employee during the effective period of this Agreement with respect to patients of Employer (i.e. patients to whom Employee has rendered services to pursuant to this Agreement) are and will remain the sole property of Employer.

9. Non-Disclosure of Professional and Business Practices. Employee agrees to keep confidential and to not use or disclose the professional and business practices, trade secrets, or privileged information of Employer and to keep such knowledge confidential in Employee's dealings with any person or entity outside Employer's office and staff. Further, Employee agrees not to disclose to any person or use (except for the benefit of Employer) information obtained by him / her during the period of his/her relationship with Employer as to plans, medical records, business methods, names of patients or patient addresses, whether by list or individually, financial statements or any other trade secrets, confidential or proprietary information respecting Employer. In the event of a breach of this section, Employer shall be entitled to injunctive relief in addition to any other remedies to which Employer may be entitled at law or in equity. In furtherance of this section, Employee agrees to execute a non-disclosure agreement at any time, if requested by Employer.

10. Non-Solicitation of Personnel. Except for the benefit of Employer, Employee agrees that at no time during the time that this Agreement is in effect, and for a period of one (1) year after termination of the employment relationship between Employer and Employee, regardless of the reason for the termination of the employment relationship, will he / she either solicit or accept as a patient, employee, independent contractor, partner, co-venturer, co-shareholder, agent or otherwise, any person who is or has been a patient, employee, independent contractor or other agent of Employer, without first obtaining the express written consent of Employer. Notwithstanding the foregoing, Employee may solicit or accept as a patient, employee, independent contractor, agent or otherwise, any person who is or has been a patient, employee, independent contractor or other agent of Employer if such person was a patient, employee, independent contractor or other agent of Employee prior to the effective date of this Agreement.

Annotated Version:

6. Standards of Practice and Compliance with Laws. In carrying out the duties under this Agreement, Employee, at all times, shall comply with the standards of optometric practice in the community and with all applicable statutes, rules and regulations of any and all governmental authorities. Employee acknowledges that he / she is required to have obtained and to maintain all professional licenses necessary for him / her to carry out his / her duties under this Agreement. Employee shall notify Employer within twenty-four (24) hours of the commencement or conclusion of any action or proceeding to restrict, suspend or revoke his / her license to practice optometry in the State of __________________________.

Fill in your State here.

7. Assignment of Fees. Employee shall be compensated by Employer for Employee's services pursuant to Section 3 of this Agreement. Employee hereby authorizes and requests that Employer bill patients and/or insurance companies and third party payers for the services rendered by Employee and Employee hereby assigns directly to Employer all fees earned for providing services to such patients. Said assignment shall include, but not be limited to, payments received from Workers' Compensation, private insurance and self-insured employers.

This is very important in the event you have hired a dishonest or uncooperative employee. This clause has the effect of assigning to the employer all income derived from the employee's work, and gives you express permission to bill insurance in the name of the employee.

8. Medical Records. Employee acknowledges and agrees that all patient files and medical records created, compiled, supplemented or modified by Employee during the effective period of this Agreement with respect to patients of Employer (i.e. patients to whom Employee has rendered services to pursuant to this Agreement) are and will remain the sole property of Employer.

Many doctors, following an unfriendly termination, attempt to claim that records of patients they saw belong to them, as they are the patient's doctor. This claim is defeated by this clause.

9. Non-Disclosure of Professional and Business Practices. Employee agrees to keep confidential and to not use or disclose the professional and business practices, trade secrets, or privileged information of Employer and to keep such knowledge confidential in Employee's dealings with any person or entity outside Employer's office and staff. Further, Employee agrees not to disclose to any person or use (except for the benefit of Employer) information obtained by him / her during the period of his/her relationship with Employer as to plans, medical records, business methods, names of patients or patient addresses, whether by list or individually, financial statements or any other trade secrets, confidential or proprietary information respecting Employer. In the event of a breach of this section, Employer shall be entitled to injunctive relief in addition to any other remedies to which Employer may be entitled at law or in equity. In furtherance of this section, Employee agrees to execute a non-disclosure agreement at any time, if requested by Employer.

Another common problem following a termination is the theft and use of a patient list. A doctor can use the list to open his/her own practice, or, more likely, obtain new employment with the promise that he/she has a patient list and can bring in new business to the new employer. This clause provides specific relief to prevent such acts.

10. Non-Solicitation of Personnel. Except for the benefit of Employer, Employee agrees that at no time during the time that this Agreement is in effect, and for a period of one (1) year after termination of the employment relationship between Employer and Employee, regardless of the reason for the termination of the employment relationship, will he / she either solicit or accept as a patient, employee, independent contractor, partner, co-venturer, co-shareholder, agent or otherwise, any person who is or has been a patient, employee, independent contractor or other agent of Employer, without first obtaining the express written consent of Employer. Notwithstanding the foregoing, Employee may solicit or accept as a patient, employee, independent contractor, agent or otherwise, any person who is or has been a patient, employee, independent contractor or other agent of Employer if such person was a patient, employee, independent contractor or other agent of Employee prior to the effective date of this Agreement.

This essentially prevents the terminated employee from "raping" the office by taking staff and/or patients with him/her when he/she leaves employment. Often the employee doctor will have developed a good rapport with the office staff, and you may find that key staff will wish to leave with him/her. This prevents him/her from accepting the employment of any of your staff and also serves as a limited covenant not to compete.