As a resident or fellow preparing to step into your first attending role, the excitement of receiving a job offer is often matched by the stress of reviewing the contract. These documents are full of legal language that can hide risks affecting your compensation, schedule, and even your ability to change jobs in the future.
Before you sign, it’s essential to understand the warning signs. Here are seven red flags every new physician should watch for in an employment contract.
Vague Compensation Language
If the contract doesn’t clearly explain how you’ll be paid, that’s a problem. Words like “productivity” or “bonus” without clear formulas leave room for confusion. Make sure salary, incentives, and any RVU-based pay models are spelled out in writing.
Short-Term Sign-On Bonuses with Long Commitments
A signing bonus can look attractive, but many are tied to lengthy repayment obligations if you leave early. Read the fine print. Some contracts require repayment even if you are terminated without cause.
One-Sided Termination Clauses
Many contracts allow the employer to terminate without cause with 60 or 90 days’ notice, while restricting your ability to leave under the same terms. This imbalance can leave you trapped in an unfavorable situation.
Unclear Call Coverage Expectations
Call schedules have a huge impact on quality of life. If your contract doesn’t define how often you’ll take call, or if it leaves scheduling entirely to the employer, you could end up carrying more than your fair share.
Missing or Inadequate Malpractice Coverage
Malpractice insurance, especially tail coverage, is one of the most overlooked but critical parts of a contract. If coverage isn’t specified, you may face significant personal costs later.
Restrictive Non-Compete Clauses
Non-competes can limit your future options if you want to move practices or switch employers. Watch out for overly broad restrictions on geography or time that could block you from working near family or in your chosen specialty area.
Lack of Details on Duties and Responsibilities
Vague language around job duties can leave you with more administrative or clinical tasks than expected. If the contract doesn’t specify patient load, clinic hours, or additional duties, you may find your day-to-day work looks very different than you imagined.
Protecting Your Future
Your first job is a big step, but it doesn’t have to be a risky one. By learning to spot these red flags, you can avoid signing a contract that limits your career growth or creates unnecessary stress.
Use our Physician Contract Checklist to make sure you don’t overlook the details. If you’d like a deeper review, explore Contract Guard MD®, designed specifically for residents and fellows who need affordable, clear guidance before signing.
Frequently Asked Questions
Are non-compete clauses enforceable everywhere?
Not always. Some states restrict or ban them, but many still enforce them. It’s important to know your state’s laws before you sign.
What’s the biggest red flag in a physician contract?
Vague or missing details about compensation and malpractice coverage are among the most common red flags.
Can I negotiate my first contract as a resident?
Yes. Even residents and fellows have room to negotiate. A review will help identify which terms are worth pushing back on.
Do all employers provide tail coverage?
No. Many employers shift this cost to the physician. Tail coverage can cost tens of thousands of dollars, so always check who pays for it.
