Employment Contract Considerations with Gary Blume, J.D., MBA
Depending on your experience level and industry, your next job offer may come with a lengthy employment contract that you’re asked to sign. While your prospective employer might pass it off as a formality, you never want to just skim and sign anything without thoroughly considering the fine details. Some employment contracts can include detailed terms and conditions that could impact your career and personal life for years to come.
This week we interviewed employment contract specialist and attorney Gary Blume, J.D, President of Blume Law Firm, P.C.. For over 20 years, Gary has worked with individuals to advise on various business structures and strategic development plans. In addition to these specialties, he offers corporate council for medical professionals to assist with practice compliance, employment contracts, and litigation representation.
Watch the full interview below!
Importance of Reviewing an Employment Contract
- All law is contract law: verbal or written
- Contracts have long-lasting implications
- The nature of contracts can affect compensation and more importantly: mental well being
- You’ve invested so much time and effort into years of training, why cut yourself short now?
Overview of Employment Contracts
- Obligations – Rules & Regulations
- Who are the parties to the agreement?
- Who do you work with and who do you report to?
- Will you be expected to work on weekends or holidays?
- Compensation – Details of your salary
- Do you receive bonuses?
- Are there buy-in options?
- Be aware of the metrics used to determine your pay
Tips for Reviewing Employment Contracts
- Ask questions about everything: terms, clauses, and concepts
- You don’t have to be the expert, but you should be aware of the specifications and seek out additional council to explain the nuances
- Attorneys and other advisors are there to help you succeed
- Use them to your advantage!
- Their council provides additional credibility to question your employer on a clause you are concerned with
- After sharing your thoughts/concerns with your potential employer, consider these questions:
- Did they listen to you?
- Do they care about you?
- Were they reasonable in their responses?
Insurance & Other Important Items to Consider
- Insurance is integral to provide protection to you and your practice.
- Tail coverage: extends coverage for incidents that happened during the time you had your policy, but a claim was not filed until after your policy expired or was canceled
- Make sure it is paid before the premium is due
- Important to be understood to have continuity of coverage for the practice when moving or taking a new job
- Non-compete Clauses: state contract law and refers to situations where one party to the contract agrees to not enter into or start a similar profession or offer the same or similar services in competition against another party
- Intellectual Property Clauses
- Does the employment agreement include anything related to patents, intellectual property, or inventions?
- If so, is it valid?
- Does this bind an invention that was conceived prior to the agreement?
- Duration of Contract
- Know the conditions allowing either party to terminate the agreement
Common Contract Mistakes
- Primarily money and family driven
- Client moves out of state and was not aware of transportability on coverage
- Client did not pay the remainder of debt owed to the practice
- General violations to the agreement/contract as a result of misunderstanding the stipulations or simply not being aware
- Unfortunately, these situations often end up in litigation
Welcome to the Fight
- This is your new world of working with insurance companies, government agencies, and lawyers
- Be prepared, evaluate contracts, and make sure you have your team of advisors on board to help you
Lastly, take a deep breath. You’ve come so far. Let’s make sure you reap the rewards you deserve.
Watch the full interview with Gary Blume:
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Securities and advisory services offered through Cetera Advisors LLC, Member FINRA/SIPC, a broker/dealer and a Registered Investment Advisor. Cetera is under separate ownership from any other named entity.