Contract Advice

[crs527]

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Hi everyone,
Interviewing for my first job in the NYC area. There are two practices I am currently interested in. One is owned by Suveto and the other Alliance (if anyone is familiar with those companies). Just got this offer! The practice had 4 doctors and 4 techs when I visited, and seems to be well run and busy. My first thought was to negotiate the student loan contribution/ sign on bonus to be included in my salary, and find out what would happen if I fail to meet the expected production. Would love advice on other aspects of this contract I should try to negotiate or clarify!

Salary: Initial annual base salary will be $125,000. Base salary assumes a personal annual production of $625,000. After 6 months, eligible to earn monthly production bonuses of 20% on all treatments, services and surgery revenues collected to the extent that production exceeds your base salary, as more fully explained in the Employment Agreement.

Term: 2 years, with annual renewals. Proposed Schedule: Full-time, 4 days per week within business needs to include Saturday shift rotations.

Signing Bonus: $20,000 to be paid immediately following 90 days of employment. Required to commit to the initial term of employment in exchange for this one-time signing bonus, and your failure to fulfill that obligation will result in you being required to reimburse the Company for all or part of the bonus. This signing bonus payment is subject to normal payroll deductions and withholdings as required by law.

DVM Student Loan Contribution: $3,500 student loan contribution upon each anniversary of start date.

Memberships and Dues: Will reimburse for payments made towards AVMA & NYVMA professional membership dues and all state license fees. Hospital specific liability/malpractice insurance, including license defense will also be provided. The Company will also pay for DEA license renewal and VIN membership.

Continuing Education: Eligible for a CE allowance of $2,000 awarded annually + 3 paid days off to use for CE.

Insurance: Eligible to participate in medical, dental, vision and life insurances, subject to the terms and conditions of applicable plans. The Company reserves the right to implement, modify, amend, or discontinue any and all such benefits and/or the Company’s relative contributions to the premiums for any such benefits in its sole discretion. If enrolling in either Silver or Gold level healthcare benefits, company will pay for employee only premiums via increase to base salary.

PTO: Eligible to participate in plan that includes paid vacation, sick leave, and holidays, as those plans may be implemented, modified, amended, or discontinued from time to time in the Company’s sole discretion. Initially eligible for a total of 15 days of PTO, to include personal, vacation or sick days. Continuing Education days offered above are in addition to PTO. Parental Leave: 2 weeks of paid parental leave.

401(k) Plan and Match: eligible to enroll and contribute to the Company’s 401(k) plan on the first day of the month following 30 days of employment. After 12 months of employment, eligible to participate in a company match and receive a 100% match of up to 3% of your base pay & a 50% match of the next 2% of your base pay.

Alliance Academy Mentors: Eligible to participate in the Company’s 12-month mentorship and onboarding program; to support your success. Enrollment in our proprietary mentorship program will provide you ongoing support and training with a network of both peers and mentor experienced DVMs. The program offers virtual and interactive hands-on learning to help you grow and confidently transition into your new position. The practice will commit $5,000 to sponsor you joining the interactive 5-day Alliance Academy Mentors session which includes a Dental Wet Lab, Surgery Exposure and Mock Exam & Client Interaction Training (no out of pocket costs for you & date TBD).

 

[pp9]

I'd join the 'Debt-Free Vets' FB page - a lot of contract discussion and opinions there.

My initial thoughts:
1. That PTO is terrible.
2. How good do you feel about sticking something out for two years? That is a good sign on bonus, but it can become 'golden handcuffs' quickly if you end up disliking the practice. If you do take this offer, I'd stash that bonus in a high-yield account and not touch it until you hit two years. If they are willing to make it part of your first year salary, that could be a good solution. I would not make the student loan contribution part of your salary as it would be taxed - I haven't looked into this for a while, but there is a way to avoid taxation on that if the employer cuts the check directly to your loan servicer I believe. I think there was an expiration on that loophole, however, so I'd look into it.
3. I've not been on production myself so I don't have a ton to add in there, other than it's normal for new grads to not hit their production marks in the first year or even few years. You'd have to ask your potential future employer what the consequences of underproducing are (is there negative accrual?). Basically you have to produce ~$13k/week to 'earn' your base salary. I imagine NYC costs are higher so that might be less daunting than it seems. Otherwise, a base of 125k with 20% production seems pretty standard to me.
4. 4 techs to 4 doctors in a 'busy' practice doesn't seem like it is set up for success imo. Ideally 2-3 techs per doctor. Do they plan to hire a tech for you?

 

[JaynaAli]

I haven’t worked in GP so take this with a grain of salt, but I don’t get why there’s a six month waiting period on production? I mean it’s probably unlikely you’ll make production right away, but if you DO get above that benchmark before six months I don’t understand why they wouldn’t pay production? Unless this is one of those ER training thingies. Definitely talk to them about what happens if you don’t meet production…sometimes they’re sneaky in how they phrase negative accrual because they know vets hate it. Also they say 20% on treatment, services, and surgery but what about meds and stuff? Those can add up, though it’s not uncommon for them to be excluded or at lower rates.

I don’t see anything in here about a noncompete? Hopefully that means there isn’t one, but I’d ask if that hasn’t been discussed.

A two year contract is long for a first job. I think statistically speaking most people leave their first job fairly quickly as they figure out what they want in a job. I agree with pp about saving the signon bonus if you can just in case you want to cut and run early.

Also, even if they provide you with liability through the hospital, it’s a good idea to budget the money to pay for your own policy. A hospital policy looks out for the hospital and hopefully you too, but I’d want to have my own to look out for my interests. It’s under $1,000/yr for a personal policy like avma plit.

I’d also get a schedule in writing about how often you’re working saturdays or what those expectations are. Don’t let them give you all the crappy shifts.

The CE allowance seems low, especially if you’re wanting more hands on stuff like dental ultrasound labs. Conference registration is often 500-700 and the hotels and meals add up…2000 is better than 0 but 3-4k is better. 3 days is on the short side day-wise too, especially if you’ll be traveling. It takes 3 pretty full conference days for me to meet my 20hr/yr requirements, not including flight or other travel time.