Questions to ask before you sign

Lately, I’ve been receiving emails from optometry students inquiring about what makes a “good” employment contract.

Here, I discuss some of the more common questions to ask when reviewing an employment contract. (Caveat, I am not an attorney, so I recommend hiring a contract attorney. There is a lot of legal jargon and loopholes and state-specific items that a professional should review.)

With that said, let’s get into it:

DOES THE CONTRACT OFFER WHAT YOU’RE WORTH?

Make sure you are getting what you’re worth. The going rate for an optometrist, whether a new graduate, someone who is residency trained or someone who has 15 plus years of experience, varies by state, region and type of experience. That said, typically, an optometrist makes between 14% to 16% of a practice’s revenue. Established practices may offer slightly higher, while newer practices may go slightly lower. (See “Types of Payment, below.”)

DOES THE CONTRACT OFFER A BONUS

If you are being paid a straight percentage of what you bring into the practice, you likely will be offered some type of bonus or additional incentive.

TYPES OF PAYMENT

 Salary. A set annual pay.

 

 Daily rate. A flat amount given daily.

 

 Straight percentage. A payment based on commission.

 

 Independent contractor. A payment subject to self-employment tax.

 

Optometrists who are paid a daily rate or salary also may have additional incentive available to them based on optical sales alone, exam revenue or all revenue brought in by the patients they and they alone see. Bonuses also can be based off overall office growth or a percentage of a specific practice goal reached.

Further, additional pay can be wrapped into items, such as taking on human resource tasks, like tech training.

Other types of add-on compensation could be linked to marketing responsibilities or bringing in a new specialty.

DOES THE CONTRACT OFFER BENEFITS ABOVE PAY?

Don’t overlook the value of retirement plans, be they 401Ks, a simple IRA or something else. The former two typically include a practice-matching percentage — 3% is fairly common — and can be worth quite a bit.

Something else to consider: paid time off. I recommend making sure vacation time is spelled out either in hours or days as opposed to weeks to avoid ambiguity.

Finally, CE is often offered. Travel, cost of the course, accommodations and meals may be covered by the practice.

ARE STATE AND NATIONAL DUES INCLUDED?

I recommend membership to your state and national optometric associations, as they offer helpful resources. But, membership can be expensive and, thus, is an added compensation perk.

DOES THE CONTRACT OFFER INSURANCE?

Malpractice, health and disability insurance are all important. Malpractice insurance, in particular, can be pricey; if it is part of the contract, that’s helpful. As for disability insurance, you want to see whether it’s available long-term, short-term or both. You never know what may befall you.

NOT AN EXHAUSTIVE LIST

This is, by no means, a comprehensive list of questions to ask, but rather a look at some of the more common ones. Remember to look at employment contracts in their entirety to determine their value. Happy job hunting! OM

 

 

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DR. O’BRIEN is the owner and optometrist at Denver Eye Care & Eyewear Gallery in Denver, N.C. She is heavily involved with student programming through the private practice clubs and Vision Source NEXT program and works with iCare Advisors as a consultant to help others pursue their cold-start private practice dreams.