Is a Termination of Contract Penalty standard

[VentAlarm]

Lolz

[SerrateAndDominate]

A non-compete is penalty enough. Scratch it or bail

[Yowza]

Sounds like forum has spoken

This is the way

[pulmdoc]

Hello,

I am actively searching for primary care jobs and came across an offer that seemingly had a large (>>100k) penalty for leaving before the end of the contract. This is in addition to prorating and repaying the sign on bonus. Is this typical? Thanks for insight and suggestions!

Absolutely not typical. Run. There are too many jobs in primary care to settle.

[jfoxcpacfp]

I have reviewed many different physician contracts (not-a-lawyer by any means, but familiar with many commonalities and can advise from this perspective, along with related to tax treatment). I have never seen this. It’s typically a repayment of the sign-on bonus, sometimes with interest, and a repayment of all or part of student loan subsidies ( both if applicable, and usually on a sliding scale), along with a non-compete for a couple of yrs. Struggling to come up with any other penalty treatment, but can’t come up with anything else at this time.

[White.Beard.Doc]

If you otherwise like the job, ask to speak to other physicians who have joined in the last couple of years to get more information from the horses mouth. And then tell the administrator that a condition of you taking the job is you will not agree to any departure penalty whatsoever. Simply cross that out of the contract before signing.

[Dusn]

There are primary care jobs everywhere and the wait for a new patient to get into a primary care office is >3 months even in major cities. Don’t accept stuff like that in your contract.

[billy]

In case you need one more opinion- RUN!

[Tangler]

The fact that they have that in the contract is telling enough. Walk.

Run!

[ENT Doc]

The fact that they have that in the contract is telling enough. Walk.

[childay]

Sounds like forum has spoken

[White.Beard.Doc]

90 to 120 days notice prior to departure is fairly standard in physician contracts. Paying back a signing bonus or retention bonus is also fairly common, typically with a declining amount owed with the passage of time.

But a straight up 6 figure penalty for departure is very unusual. Is this a straight penalty, or is it payback of a signing bonus or retention bonus?

[CordMcNally]

It's nice that they tell you the job sucks without actually having to say it out loud.

[AR]

Obviously it depends on the market and what others are offering. Somehow I doubt all the other employers are making similar offers to docs.

I've had a non-compete with a nearly 7 figure option to have the non-compete removed. Obviously I never had the slightest inclination exercise that option. And I suppose having such an option is technically better than not having it at all.

[MWprimarycare]

I appreciate everyone’s input. I thought it seemed aggressive, and I am glad i wasn’t alone