Avoid Stressful Mooning Over Moonlighting Contracts

Many of our physician clients moonlight or want to moonlight in addition to working in their full-time positions. The most common questions they ask us are: 1) How do I protect myself when entering into a contract to provide moonlighting services? and 2) Do I need to disclose to my employer that I am going to moonlight? We provide some tips below.

Agreements for moonlighting services should be in a written contract that should clearly state at least the following points:

• Whether the moonlighting provider is an employee or an independent contractor
• The Term of the contract
• How the contract can be terminated with and without cause
• The minimum and maximum number of hours to be worked
• Requirements relative to the completion of records
• The compensation amount, method of payment and timing of payments
• That malpractice insurance, including tail insurance, is covered solely by the company (and not the provider)
• The limits of malpractice insurance coverage
• That the contract is not exclusive

Preferably moonlighting contracts should NOT contain restrictive covenants (noncompete agreements). This is ultimately a business decision for the provider, but we caution against it whenever possible. On balance, the risk of the noncompete usually outweighs the value of the contract.

With regard to whether a provider needs to disclose moonlighting to his or her full-time employer, the answer is most often “yes.” Employment Agreements between employers and employed physicians frequently contain a requirement that the relationship is exclusive unless the employer specifically consents otherwise. This is to ensure that the employed physician does not compete with the employer and that the physician can devote sufficient time to the full-time position. If you know prior to signing a full-time Employment Agreement that you are going to moonlight (often the case in specialties such as hospitalists and emergency physicians), this can be disclosed prior to signing and addressed in the Employment Agreement.

As always, we recommend that any contract be reviewed by legal counsel before signing. See more articles regarding contracts.

For further information contact us.