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  1. #1
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    Oct 2015
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    Default Do You Have to Pay Back Your Draw if You Resign

    My question involves labor and employment law for the state of: FL

    I am a recently graduated dentist and have been working in a private office as an associate dentist. Due to recent events I no longer trust the practice I work for an am planning to resign. I get paid on a draw and am worried I might have to pay the money back to them because I am still in the negative. Please take a look at some excerpts from my contract regarding my title, base pay, draw, and termination.

    Thank you

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    How do I post pictures from my phone on here?

  2. #2
    Join Date
    Mar 2013
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    Default Re: Dentist Resignation. Will I Have to Pay Back Draw

    Quote Quoting Rs1370
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    My question involves labor and employment law for the state of: FL

    I am a recently graduated dentist and have been working in a private office as an associate dentist. Due to recent events I no longer trust the practice I work for an am planning to resign. I get paid on a draw and am worried I might have to pay the money back to them because I am still in the negative. Please take a look at some excerpts from my contract regarding my title, base pay, draw, and termination.
    Quote the draw and termination provisions to start.

    Quote Quoting Rs1370
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    How do I post pictures from my phone on here?
    You'll have to use something like photobucket as I don't see an option here to upload direct. You might have to put the photos on your computer to use photobucket. I'm just guessing. You'll have to figure it out.

  3. #3
    Join Date
    Oct 2015
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    7

    Default Re: Dentist Resignation. Will I Have to Pay Back Draw

    Associate is an Employee dentist

    Production goals: Associate is expected to reach a minimum gross monthly production of $25,000 by the end of Associates first three months. Further it is expected that associate should be at a minimum of $46,000 gross monthly production by the end of Associates first 6 months at the practice. Should it become apparent that associate is not on track to meet these minimum requirements, or in fact misses these requirements, it is likely that the relationship will be considered non-viable.

    Introductory base pay:
    For the purpose of providing time to build the necessary patient base to warrant the need for associate's ongoing services, the practice agrees to gurantee Associate a minimum of $500 for each 8 hour work day of the initial six months of employment, payable in place of commission when Associate's commission compensation does not exceed this amount.

    Draw:
    The practice agree to pay associate a draw of $500 for each day worked paid as described above. The draw shall be considered an advance against future commissions. Advances shall be repaid by deduction from Associates earned commissions whenever such commissions exceed the draw amount in each pay compensation, advances and repayments made to associate and provide access to a report of such accounting to Associate upon request.

    Termination:
    Employment of associate is at will and may be terminated at any time by either party with or without notice or reason, the parties agree that associates employment may be terminated immediately upon the occurrence of the following...(goes on to list some scenarios)

    Adjusted compensation upon termination:
    Adjust production model: During the course of employment, the practice shall deduct $250 per month from the commissions due associate until such sums total $2000, thereby creating a retainer for adjustments in the event of termination. The retainer will be used soley for the purpose of reimbursement to the practice for any remakes, do-overs, insurance adjustments or refunds attributable to associate and which occur within 60 days, the retainer, less the foregoing adjustments will be paid to associate last known address on file.

    Right to set-off:
    If associate becomes obligated or liable to pay any sum of money to the practice, whether pursuant to this agreement or otherwise, then that sum may, at the election of the practice, and without limiting or waiving any right or remedy available to the practice, be set-off against and shall apply to any sum of money owed by the practice to associate, whether by way of holdback or otherwise, until such amount has been set-off in full.

  4. #4
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    Default Re: Dentist Resignation. Will I Have to Pay Back Draw

    Not at all surprisingly, you agreed to repay the draw to the extent that it exceeds your earnings.

  5. #5
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    Oct 2015
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    Default Re: Dentist Resignation. Will I Have to Pay Back Draw

    Quote Quoting Mr. Knowitall
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    Not at all surprisingly, you agreed to repay the draw to the extent that it exceeds your earnings.
    so are you saying I will have to repay if I have to resign?

  6. #6
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    Default Re: Dentist Resignation. Will I Have to Pay Back Draw

    If you believe that you can quit and pocket money that you have not yet earned, you are free to try it and see what happens.

  7. #7
    Join Date
    Oct 2015
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    Default Re: Dentist Resignation. Will I Have to Pay Back Draw

    why are you assuming I am trying to pocket money. I am quitting because I cannot produce anything at this job because they do not have enough pt base to sustain me. I don't have any money because I have spent it all paying back credit card debt since graduating from school. so if you can't give me some good advice based on the info I gave then don't comment on this thread

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    can anyone on this site recommend a good trustworthy employment lawyer in southwest florida

  8. #8
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    Mar 2013
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    Default Re: Dentist Resignation. Will I Have to Pay Back Draw

    Quote Quoting Rs1370
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    why are you assuming I am trying to pocket money. I am quitting because I cannot produce anything at this job because they do not have enough pt base to sustain me. I don't have any money because I have spent it all paying back credit card debt since graduating from school. so if you can't give me some good advice based on the info I gave then don't comment on this thread
    This is one of the rare occasions that I disagree with Mr K's comments.

    You have, of course, agreed that the draw is deducted from commissions during your employment but I don't see anything in that poorly worded contract that says you repay all of your unearned draw upon termination.

    Just the opposite, the contract appears to limit the employer's recovery to $2000 if what they owe you exceeds $2000 and if the employer has accumulated the $2000 in the $250 per month increments.

    If the employer has not accumulated the full $2000 then the employer is stuck with applying whatever amount has accumulated and is not entitled to any more money from you after termination because the contract doesn't specify that it is.

    In other words you won't have to come out of pocket when you leave.

    Other than perhaps having your final paycheck applied to the draw deficit that occurs through the termination date.

    Further, an ambiguous contract (and this certainly appears to be ambiguous) is customarily construed against the party that wrote it.

    Quote Quoting Rs1370
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    can anyone on this site recommend a good trustworthy employment lawyer in southwest florida
    No. We don't do that.

    But I don't see why you would need one until and unless your employer comes after you for money after you leave. Even then, if not presented with a lawsuit you are free to ignore any hot air coming from the employer.

  9. #9
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    Oct 2015
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    7

    Default Re: Dentist Resignation. Will I Have to Pay Back Draw

    Don't you think I should at least consult an attorney in case my employer does try to come after me for money?

    I am in a very weird situation; everyday more I show up to the practice that's $500 more in the hole I go into. I don't understand why they would hire me if they cannot sustain me, this is very bad business strategy.

  10. #10
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    Default Re: Dentist Resignation. Will I Have to Pay Back Draw

    Quote Quoting adjusterjack
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    You have, of course, agreed that the draw is deducted from commissions during your employment but I don't see anything in that poorly worded contract that says you repay all of your unearned draw upon termination.
    The contract certainly isn't the best in the world, but it's clear enough -- the money has not been earned. How do you come up with the notion that unearned compensation, explicitly described as a draw, can be kept if you quit before you earn it? Can you offer some authority for that position, from anywhere in the country?

    The draw does not fall into the itemization of "remakes, do-overs, insurance adjustments or refunds attributable to associate" -- that's a separate issue -- nor does the (eventual) reserve of $2,000 for such charges mean that there can be no liability beyond $2,000 for other debts and obligations.
    Quote Quoting Rs1370
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    Don't you think I should at least consult an attorney in case my employer does try to come after me for money?
    I think that you should. Also, a lawyer, upon review of the full situation along with any promises made when you entered the practice, may be able to come up with a more viable theory for keeping some of the money; or you may want to have your lawyer negotiate some form of exit agreement.
    Quote Quoting Rs1370
    I am in a very weird situation; everyday more I show up to the practice that's $500 more in the hole I go into. I don't understand why they would hire me if they cannot sustain me, this is very bad business strategy.
    You do have the option of declining the draw. The issue with that appears to be that your actual, earned wages would be quite low.

    Have you tried having an actual discussion with your employer about how it is that you're supposed to treat enough patients to pay off your draw, if they don't have the business necessary to support your employment?

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