10 Key Facts About Restrictive Covenants for Dentists (Non-Compete Agreements)

Mid-America’s most trusted dental practice valuation and sales

If you’re considering signing with a dental practice in the St. Louis area, chances are you’ll be asked to sign a Restrictive Covenant (also called a non-compete agreement).

Over the years, we’ve worked with many dentists facing these agreements—either at the start of employment or when preparing to leave and open their own practice. Here are 10 key facts every dentist should know:

1. Will I have to sign one?

Almost always. Most private practices include a Restrictive Covenant in their Employment Contract. All DSOs require one.

2. Why do they exist?

Employers want to prevent an associate from leaving and opening nearby, drawing patients away.

3. What’s considered “normal”?

In Greater St. Louis: typically, 10 miles and 5 years.
In outstate or rural areas: 15–20 miles may be common.

4. Are they enforceable?

Yes—if the terms are considered reasonable.

5. What does “reasonable” mean?

It varies by state and location. The goal is to restrict you from practicing where your employer draws patients.

6. How are they enforced?

If you violate the agreement, your former employer can seek an injunction preventing you from practicing.

7. Can they be negotiated?

Sometimes. Even some DSOs will negotiate terms, depending on circumstances.

8. What if my employer has multiple offices?

You should only be restricted at the location where you primarily practice.

9. What happens if the practice is sold?

  • Illinois: Employment contracts are generally assignable, so your Restrictive Covenant likely applies to the new owner.

  • Missouri: Less clear – outcomes can vary.

10. What else should I know?

Every situation is different. For legal interpretation, consult your attorney. For practical insight, give us a call—we’re happy to share what we’ve seen work in real-world cases.

Bottom line: Restrictive Covenants are a major factor when deciding whether to purchase your own practice or sign on as an associate. Understanding your rights and limitations upfront can save you headaches later.

– Bill Otten & Kim Rey

Confident female dentist in white coat and blue gloves representing dental professionals supported by Otten-Rey Dental Sales.
What People Say

Client Testimonials

Kim with Otten-Rey Dental Sales truly made what I thought would be a stressful process extremely easy and painless. From our first meeting all the way until closing, Kim was always reliably there for me through out the process. I trusted her system and it was simple and seamless. I would definitely choose Kim again for my transition if l had to do it all over again.

review from happy client on homepage
Glenn R. Edwards DMD

When I decided to buy a dental practice, I quickly learned that practice brokers represent the seller. As a buyer, that posed some challenges. Of all the brokers I worked with in St. Louis, Kim was the only one who managed to make me feel that she was actively trying to find a practice for me to buy. Not only did she help me find a practice I loved, but she still represented her seller well and was fair throughout the entire process. Because of her, I am now the owner of a great dental practice that I love and I truly believe she made that happen for me. Thanks Kim.

Dr. Daugherty - happy client
Dr. Victoria Daugherty

Thank you both, Kim & Bill. This has been a great adventure. All is going great with the merger of Dr. Berger’s practice. Overall, I would say it is a great success. And I couldn’t have done it without both of you.

review from happy client
Dr. Christy Hager

I felt my practice purchase went smoothly and efficiently with the help of Otten-Rey Dental Sales. As a buyer, I felt comfortable with the fair appraisal that Otten-Rey put on the practice and both Kim and Bill were very accommodating getting any requested info to help me do my due diligence…Otten-Rey is known in the St. Louis Dental community for being easy to work with and I strongly recommend either buyers or sellers use them in the process of your dental transition. Having their expertise, experience and organization really made things a lot less stressful.

review from happy client Dr Jen Wheeler
Dr. Jennifer Wheeler Chesterfield, MO practice

Kim’s understanding of all aspects of a transition was invaluable. She has comprehensive knowledge of both the financial and clinical aspects of a dental office. She also provided the guidance and understanding of the legal aspects necessary to close the transaction. Thanks Kim!

review from happy client Dan Twillman
Dan Twillman DMD

Kim Rey was my broker in representing me when I sold my pediatric dentistry practice. From my standpoint, Kim brought a great amount of stability to the whole process. I appreciate her insight and her levelheaded guidance on what my expectations should be, what the normal accepted practice and standards are when dealing with a buyer. The process was longer than I anticipated, but Kim kept me focused and on the right track until the transaction was completed. Throughout the process, she always made me feel like I could rely on her and that in turn gave me a great deal of comfort. I would highly recommend Kim Rey to anyone looking to buy or sell a dental practice.

review from happy client Andrew Kim DMD, MS
Andrew M. Kim DMD

Several of my friends used Kim and Bill to sell their practices and had highly recommended them. I was pleased with the thorough process of valuation and the explanation of the report. They provided frequent updates and the guide for printing the necessary reports for the valuation. They found a buyer that fit our needs. I would recommend them to the other dental offices needing the same services.

Illustrated tooth graphic used in Otten-Rey Dental Sales branding
Gerald Dragich DMD