Dental & Veterinary Contract Review in Alabama

Dentists and veterinarians sign many of the same agreements: an associate contract with a practice, a restrictive covenant, production-based compensation, and often a path to ownership that is described more loosely than it should be.

Under Alabama law the two professions do not sit in quite the same place, and that difference is understand before you sign.

Why are dentists and veterinarians treated differently?

Alabama Code Section 8-1-190(a) voids any contract by which someone is restrained from exercising a lawful profession, trade, or business, unless it fits one of six statutory exceptions. Alabama courts have long read profession to carry particular weight, and have held non-compete agreements generally unenforceable against professionals. The doctrine has been applied to physicians, veterinarians, accountants, and licensed physical therapists.

Veterinarians are on that list. A non-compete in a veterinary associate agreement faces a serious obstacle from the outset, though the analysis still depends on the role and the agreement.

Dentistry is a closer question. It is unambiguously a licensed profession, and the argument that the same doctrine applies is a strong one. But it is an argument rather than a decided point, and a dentist should treat the outcome as genuinely open rather than settled in either direction. That is not a reason to assume the covenant binds you. It is a reason not to assume anything without reading it properly.

Non-solicitation is a separate question

Section 8-1-190(b)(5) handles solicitation of current customers under its own exception, with its own presumption: 18 months, or as long as post-separation consideration is paid, whichever is greater, is presumed reasonable. Whether such a clause survives against a professional where a non-compete would not is something Alabama courts are still working out.

For an associate leaving a practice, this is often the clause that matters, because it governs contact with patients and clients rather than geography. Our guide to non-compete enforceability in Alabama covers both in more detail.

Are you paid on production or on collections?

Associate compensation is usually tied to production, collections, or some blend. The formula matters less than the definitions underneath it, and that is where associate agreements most often disappoint:

• Whether you are paid on production or on collections, and who bears the risk when a bill goes unpaid
• What is deducted before your percentage is applied, including lab fees, supplies, and staff costs
• How insurance write-offs and adjustments are treated
• Whether a guarantee or draw applies, and what happens if production falls short of it
• Whether unpaid production survives your departure or is forfeited
• Who controls scheduling, which in a production model directly controls your income

Is the buy-in language actually a commitment?

Many associate agreements gesture at future ownership. A path to partnership described as to be determined, or subject to further agreement, commits nobody to anything. If ownership is part of why you are taking the role, it is fair to ask for specifics before signing: the valuation method, the timeline, what triggers the offer, and what happens if it never comes.

This is also where business succession planning and contract work start to overlap, particularly for an owner on the other side of the table structuring how an associate eventually buys in.

The rest of the agreement

• Term and termination. Notice periods, what counts as cause, and how termination interacts with any repayment or restrictive covenant
• Insurance. Who carries malpractice cover, whether it is claims-made or occurrence, and who pays for tail coverage if it is claims-made
• Equipment and facilities. What the practice provides and what comes out of your percentage
• Assignment. Whether the agreement and its covenants can be transferred if the practice is sold, which matters in a market where group acquisitions are common
• Repayment clauses. Signing bonuses, relocation, and continuing education costs that claw back on early departure

What review costs

Associate agreements tend to sit at the shorter end, which usually keeps cost down. The figure still depends on stakes, whether negotiation is wanted, and how quickly it is needed, and it is agreed before any work begins. What drives contract review cost.

Frequently Asked Questions

Are non-compete agreements enforceable against veterinarians in Alabama?

Often they are not. Alabama Code Section 8-1-190(a) voids contracts restraining a lawful profession, and Alabama courts have expressly applied that doctrine to veterinarians alongside physicians, accountants, and licensed physical therapists. A restrictive covenant in a veterinary associate agreement therefore faces a real obstacle, though the analysis still depends on the specific role and agreement.

Are non-compete agreements enforceable against dentists in Alabama?

That is less settled than it is for veterinarians. Dentistry is unambiguously a licensed profession and the argument that the same doctrine applies is a strong one, but Alabama courts have not addressed dentistry the way they have physicians and veterinarians. A dentist should treat the outcome as genuinely open rather than assuming the covenant either binds them or does not.

Why are dentists and veterinarians treated differently under Alabama non-compete law?

Not by design. Section 8-1-190(a) voids restraints on a lawful profession without listing which occupations count, so the question of what qualifies as a profession has been worked out by the courts case by case. Veterinarians have been addressed directly. Dentistry has not, which leaves an argument by analogy rather than a decided point.

What should I check in a dental associate agreement?

The compensation definitions first. Whether you are paid on production or collections, what is deducted before your percentage applies, how insurance write-offs are handled, whether unpaid production survives your departure, and who controls scheduling. After that: the restrictive covenants, termination and notice, insurance and tail coverage, and any repayment clause on a signing bonus.

What is the difference between being paid on production and on collections?

Production counts the work you perform. Collections count the money the practice receives for it. Under a collections model you carry some of the risk when a bill goes unpaid or an insurer writes an amount down. Neither is inherently better, but the agreement should say clearly which applies and what is deducted before your percentage is calculated.

Should I have a veterinary employment contract reviewed before signing?

Before signing is when your leverage is highest and changes are cheapest. Review after signing is still useful, because it establishes what your notice obligations are, what the restrictive covenant restricts, and what your options look like before you take a step that affects your rights.

Is a non-solicitation clause enforceable against a dentist or veterinarian in Alabama?

It is a separate question from the non-compete, with its own statutory exception under Section 8-1-190(b)(5) and its own presumption of reasonableness at 18 months, or as long as post-separation consideration is paid, whichever is greater. Whether such a clause survives against a professional where a non-compete would not is an area Alabama courts are still working out.

What should I look for in buy-in or partnership language?

Whether it is defined. A path to ownership described as to be determined or subject to further agreement commits nobody. If ownership is part of why you are taking the role, ask for the valuation method, the timeline, what triggers the offer, and what happens if it never arrives. Those are fair questions before signing rather than after.

What happens to my agreement if the practice is acquired?

That depends on the assignment and change of control language. Some agreements allow the practice to transfer the contract, and the restrictive covenant with it, to a buyer. In a market where group acquisitions are common this is worth checking before you sign rather than discovering afterwards.

Do you review contracts for other licensed professionals?

Yes. We review employment, associate, and contractor agreements across licensed professions. The core questions are the same each time: what the restrictive covenants actually restrict, how compensation is calculated, what the termination and notice terms require, and what insurance or repayment obligations follow you out the door.

How much does dental or veterinary contract review cost in Alabama?

It depends, and we will tell you what it depends on rather than hiding the ball. Four things drive the number: the length of the document, what is at stake if it goes wrong, whether you want negotiation or just understanding, and how fast you need it. We explain the expected scope and cost at the consultation, before any work begins.

This article is general information about Alabama law, not legal advice about your agreement. Restrictive covenant questions are fact-specific, and how Alabama courts treat a particular profession can depend on the role and the agreement.