NEGOTIATING &

BREAKING
CONTRACTS
Presenters: Salena Barnes RN, BSN & Tonya Crager RN,
BSN

Objectives
Discuss a brief overview of the negotiation process.

Provide guidance for discussions during the contract process.

Define your personal goals and what is most important in the contract.

Offering leadership in the negotiation process.

Analyze contract for potential solutions that may present during the
negotiation process.

GRADUATION DAY IS ALMOST

HERE!!!
We have been trying to escape for the last two years. So I know everyone is excited about going
out and finding a job in our new profession.
!!

WORD OF CAUTION
Dont let the
excitement cloud
your judgement &
with one stroke of
the pen you sign
your
LIFE AWAY!!

ITS TO LATE ITS

A DONE DEAL

Lets start with the basics:

A contract is a written, as well
as spoken agreement, chiefly
one regarding employment,
sales, or tenancy, that is can
be enforced by the law.

Negotiating consists of
trying to reach an
agreement or compromise
by discussion with others.

Things to consider:
Be familiar with the scope of practice
in the state, licensure, and licensure
renewal. Do nurse practitioner have
autonomy or is collaboration with a
physician required? What are the
prescriptive authority parameters?
Be familiar with the type of practice
setting in the facility? Is it a specialty
area which may require additional
training? Is it a mix of clinicians? Role
of nurse practitioners? Location? Type
of insurance accepted?

 What are some things you are willing to compromise on?

What do you feel you must have in the contract?
How long do you want to be under contract?
What is the financial stability of facility? Is it in the red?
What happens to you if the facility is sold? Does your employment contract
terminate or remain in force?

Negotiation Strategies:
1. Create a win-win situation.
2. Allow the employer to make the first
offer and listen to their explanation
of the offer, which will allow you to
make an informed counter offer.
3. Know the minimum you will accept.
4. While negotiating your salary, keep
in mind the benefits offered and your
working hours.

Put on your thinking cap:

Dont fall for this is just basic
contract jargon, standard language,
and vague language.
Take your time, read carefully, and
dont be pressured.
If you do not understand something
in a contract, seek professional
help for clarification before signing.
Make sure its in WRITING!

Compensation:
What is your base pay? Are
you going to get paid hourly
or salary? Day? Per patient?
Is the bonus guaranteed or
discretionary? Who decides
if you have met the
conditions for a performance
based bonus? How objective
are the criteria?
Are the benefits guaranteed
or can the employer change
them at will?

Compensation:
How many hours a week are you required to work?
What will be your hours of work? Travel allowance?
Have you estimated your net worth? This leaves more negotiation for
compensation if the practice can afford what you are asking.
Will you be required to take call? If so, make sure compensation is
covered in the contract.

Usually a private practice will want to net a

profit margin rate between 15-20 %.

Cause of Termination
Check the contract
to see if the cause of
termination is well
defined. You do not
want an at-will
termination.

Job Description
If you are agreeing to sign a
contract for a period of years,
it is important to make sure
that it is what you think it is.
Make sure they have your
title, as well as your role, and
your expected duties detailed
in the contract.

Non-compete Clause
This clause takes effect once you terminate your
relationship with your employer and the employer
does not want the employee to compete against
the employer in a new setting.
Signing a contract with a non-compete clause can
have serious and long-term effects for ones career.
If youre locked in, employers can treat you unfairly
and pay you poorly. Why consider giving someone a
raise if you know they cant leave?
So consider: Is the non-compete statewide? Within
miles? Blocks?
How long does it last? Years? Months?
Under what circumstances? Voluntarily or
Termination?

Non-solicitation of employees and clients

Often placed in the contract to

prevent solicitation of employees
and clients. Patients may want to
follow you to a new practice or
you may want to hire an
employee you worked with.

Vacation Time
If vacation time is important to you,
make sure it is stated in the contract.
The average vacation time is usually
three to four weeks a year.

Maternity Leave
Maternity leave is a period of
temporary absence allotted from
employment granted to expectant or
new mothers during months prior and
after childbirth by the employer.
Consider:
Are you planning to start a family
soon? Are you prepared if get
unexpectedly pregnant?
Is it paid maternity leave? How
much? And the length of time?
Do I have short-term disability?

Sick Leave
Time allotted for illness of yourself
and/or your family members.

Sick leave usually allows one day per

month or two weeks per year.

Also consider obtaining long-term and

short-term disability.

Do you have paid sick leave?

Bereavement Leave
Losing someone or something
you love is painful and
everyone will experience at
some point in their lives.
What does your employer
define as an approved reason
for bereavement? Does it apply
to immediate family only? Pets?
How much time do you have for
bereavement? Is it paid time
off?

Retirement:

savings plan for future financial security

Adefined benefit plan, funded by the employer,

ensures you a monthly benefit at retirement. Such
as, X dollars per month at retirement. Or, it may
calculate through a formula that includes elements
such as your salary, your age, and the number of
years you worked at the facility.
Adefined contribution plan, doesnt promise a
specific benefit at retirement age. However, you
and/or you employer contribute money to your
individual account plan. You will generally be asked
to choose how these contributions are invested
and decide how much of these pretax deductions
are contributed from your paycheck. Ex:401(k)
Employers can choose whether to offer a
retirement plan to employees. The Federal law
does not require employers to offer or to continue
to offer a plan.

Additional Benefits to Discuss

o Continuing education and leave
o Malpractice insurance
o Membership in professional
organizations
o Office subscription to relevant
nurse practitioner journal

Breaking a Contract

HAVE AN EXIT PLAN!!

You should consider first, what
would you do if this job is not for
you. So make sure you have an
avenue out of the contract and its
one you can live with.
For example:
Do I have to give a 30 day
notice? Or 6 months?
DONT GET TRAPPED!!!
LOOK FOR AN EXIT IN
THE CONTRACT.

Questions

References

1. Business Negotiations, American Association of Nurse Practitioners. Retrieved from https://

www.aanp.org/practice/business-management/68-articles/579-np-tips-for-contracting
2. Contract Negotiations for Nurse Practitioners, American Association of Nurse Practitioners
(2003). Authored by: American Association of Nurse Practitioners Committee on Practice.
3. Dillon, D., & McLean Hoyson, P. (2014). Beginning Employment: A Guide for the New Nurse
Practitioner.Journal For Nurse Practitioners,10(1), 55-59 5p. doi:10.1016/j.nurpra.2013.09.009
4. Employment Negotiations, American Association of Nurse Practitioners. Retrieved from
https://www.aanp.org/component/content/article/68-articles/579-employment-negotiations
5. Kleinpell, R., & Perez, D. (2006). Acute care advisor. Negotiation strategies for ACNP
practice.Nurse Practitioner,31(5), 6-11 3p.
6. McMullen, P. (2010). Non-Compete Covenants in NP Employment Agreements. Journal for
Nurse Practitioners, 6(9), 685-690.