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