When to Call a Lawyer: Employment Contract Issues That Could Derail Your Medical Career

Your employment contract is one of the most important legal documents you’ll ever sign. It not only determines your salary and benefits but also impacts your mobility, risk exposure, and career options down the road.

Yet every day, physicians sign new or renewed employment agreements without taking the time to read the details. Boilerplate language is blindly accepted as “standard,” and recruiters and medical directors are trusted to “always have your best interest in mind.”

This is a huge mistake. Restrictive covenants, nonsensical compensation formulas, or unreasonable termination clauses might not seem like a big deal when you’re excited to start a new position, renegotiating for more pay, or resigning while in the heat of a moment, but they could haunt you later.

So, when should you get a lawyer involved before signing (or renegotiating or exiting) a physician employment contract? Here are eight key points to consider.

#1: When the Pay Is Too Good to Be True (or Too Vague to Be Understood)

The compensation section of an employment contract can often be the most complex and consequential. Pay structures in healthcare are notoriously dense, with most contracts containing a mix of salary, productivity-based incentives (RVUs, collections, etc. ), and potential bonus opportunities.

But there are some common pitfalls to avoid in any formula:

• Ambiguous RVU thresholds or bonus benchmarks
• Payment based on collections is subject to outside factors (billing department efficiency, etc.)
• Changes to the pay structure mid-contract without mutual agreement
• Lack of transparency for how compensation is calculated or adjusted year-over-year

If your salary, bonus formulas, and any potential changes aren’t clearly defined in your contract, you can lose significant negotiating leverage—and risk unpredictable income streams over time. A knowledgeable healthcare contract lawyer can help ensure that those details are not only ironclad but also linked to measurable outcomes.

#2: When Non-Compete Clauses Trap You

In Georgia, non-compete clauses in physician contracts are legal and enforceable under O.C.G.A. § 13-8-56 so long as they’re “reasonable” in duration, geographic scope, and subject matter. And while some physicians welcome the clear-cut protection of not having to worry about rivals stealing patients, many contracts go well beyond “reasonable.”

A few questions to ask:

• Would I have to leave town to continue in my field if I resign or get terminated?
• Does this restriction apply even if I’m terminated without cause or laid off?
• Could this non-compete effectively prevent me from practicing anywhere I know how to work?

A non-compete clause in your employment contract that violates the statutory reasonableness standard or seems overly broad for your specialty is one you should ask an attorney to review, modify, and/or walk you through.

#3: When You’re Being Asked to Take On Unfair Liability

Malpractice liability, billing compliance, and regulatory investigations are just a few of the areas where physician contracts should allocate responsibility. Yet far too many doctors unwittingly sign contracts that leave them exposed by shifting legal or financial liability to them personally.

That being the case, you should avoid clauses that:

• Require you to indemnify (cover) the employer for malpractice or other claims related to your work
• Hold you responsible for billing errors or collections outside of your control
• Make you liable for regulatory issues beyond your scope of practice
• Don’t explicitly state the terms of tail malpractice coverage or limits in the event of termination

If it’s not clear who’s liable for what, your practice risks and your assets could be at stake. A healthcare attorney can help protect you so that your employer—not you—remains liable for systems, staff, and organizational errors.

#4: When the Termination Clauses Are Lopsided

Employment agreements, like any contract, can only be terminated “for cause” (if certain events occur) or “without cause” (at will by either party). Most include both termination for cause and without cause, but the terms can often be vague, one-sided, or include unbalanced notice periods.

Questions to consider for termination clauses:

• How much notice must you give before resigning (or accepting a new job) vs. how much notice they have to give you?
• Are “for cause” termination reasons explicitly defined, or at the subjective discretion of the employer?
• Is there a right to cure a perceived deficiency or correct a performance gap before being fired?
• Do any benefits (bonuses, tail insurance, etc.) “vest” and remain in place if employment is terminated?

An attorney can help protect you by ensuring termination terms aren’t lopsided and that you’re not subject to abrupt dismissal without warning—or post-termination financial hits.

#5: When You’re Being Recruited by a Hospital or Private Equity–Backed Group

Hospital contracts tend to be boilerplate, and employment attorneys for large groups or private equity-backed physician organizations are not looking out for your interests. When offered a contract by a big institution, the power dynamic is often weighed against you.

The bigger the employer, the more aggressive the clauses, which may include:

• Unreasonably short “without cause” termination windows (sometimes as little as 30 days)
• Aggressive productivity quotas or RVU requirements
• Non-competes covering more than one city, county, or state
• Bonus clawbacks or repayment obligations if you leave early
• A lack of protections, transparency, or job security in the event of organizational changes

Accordingly, before signing an agreement with an employer of this size, you need to know who you are really working for and what autonomy you really have over your career if the institution makes a major pivot in direction.

#6: When You’re Thinking of Leaving—or Have Already Left

It’s common for physicians to be afraid to call a lawyer once they’ve resigned and handed in their keys. You may be thinking, “Won’t that make me look suspicious or like I’m backing out of the deal?” But in fact, the opposite is true.

Your resignation letter should include contractual language regarding notice obligations and timelines. You should know where you stand regarding final compensation, unused PTO, non-solicitation rules (contacting former patients and staff), post-employment tail insurance and liability coverage, and any required cooperation with audits, subpoenas, credentialing verifications, etc.

Having a lawyer review your employment contract before resigning can help you leave on the best terms and preserve your right to practice medicine elsewhere without burning bridges or assuming legal risk.

#7: When the Contract Doesn’t Match Verbal Promises

It’s a classic mistake: you’ve had a good call or visit with the recruiter, medical director, or hospital director. They made promises about schedule flexibility, ancillary support staff, clinical autonomy, a startup package, and future partnership opportunities.

The contract comes, you read it, and it’s all…not there.

If it’s not in writing and part of the signed agreement, it doesn’t exist. Period. The courts won’t enforce side conversations and handshake deals if your employer reneges. An attorney can review the contract, help you spot verbal promises that weren’t documented, and get them added before you sign.

#8: When You Want Leverage in the Negotiation Process

If everything in the contract seems reasonable, your lawyer will just negotiate to the middle, right? Wrong.

It’s critical to get a healthcare attorney involved as soon as you receive an offer—or even before (if they’ll review a proposed offer in advance). That’s your best chance to vet the terms for real risks and ask for revisions before the other side is even aware they’re an issue.

Remember: physician employers typically plan to negotiate on the front end of the contracting process. They’ll respond to language suggestions or revisions from your attorney the same way they do with internal legal counsel or their recruiting team. It’s a perfectly normal part of the process, and in fact, it makes for the smoothest start to the relationship, with the least surprises for both parties down the line.

Bonus Considerations: When You Need Help…Before a Problem Arises

Signing an employment contract is one of the biggest—and most impactful—legal decisions you’ll make as a physician. As important as a malpractice or tail insurance policy is your contract. It should be the one document you don’t leave home without when you start or change positions.

Therefore, the right time to consult a healthcare contract lawyer is before you sign an employment agreement, before negotiating your next deal, or before resigning to join a competitor. A good attorney can help you avoid significant liability, protect your mobility and autonomy as a physician, and help you focus on what matters: patient care.

If you’re a Georgia physician with questions about when to call a healthcare attorney for your contract, reach out to Little Health Law. We know the lingo, the pitfalls, and what’s at stake—and will give you the knowledge and leverage you need to move forward with confidence. Contact our office today to learn more about your rights and legal options.