Early Career Insights: Understanding Your First Employment Contract

This article originally appeared in the Spring 2026 issue of EquiManagement. Sign up here for a FREE subscription to EquiManagement’s quarterly digital or print magazine and any special issues.

A contract is a written or spoken agreement intended to be enforceable by law. Employment contracts are important because they spell out expectations, prevent misunderstandings, and protect both practice owners and associates.

Some practices do not engage professionals to create these documents, causing them to be confusing, incomplete, or contradictory. Others have such complicated legal language that they’re difficult to comprehend. All employment agreements should be reviewed by an attorney or a business consultant to catch inconsistencies, omissions, or errors. Work with a professional to know what is standard in the equine industry, understand when the offer is incompatible with a satisfactory work experience, and have more confidence negotiating changes.

Elements of an Employment Agreement

The key elements of an employment agreement are the term, compensation, duties and schedule, emergency duty requirements, paid time off, benefits, noncompete clause and/or restrictive covenants, and termination. Legal language commonly makes it sound like the employer can dictate all aspects of your work, but the reality is rarely this way. For example, the contract might read, “The Employer shall determine the specific duties to be performed by the Employee. The Employer shall also determine the assignment of clients to the Employee, and the Employee must perform services for such clients assigned to her. The Employer shall determine the hours of employment.” Imagine how different this feels if it includes the words “within reasonable standards within the profession.”

Key Areas to Negotiate

Key areas to negotiate include compensation, benefits, and noncompete clauses or restrictive covenants. Surveys show that associate veterinarians prefer a base salary with the opportunity to earn a production bonus. How that bonus will be calculated is important and should be clearly stated, often with an example in an appendix. Most practices offer to pay for veterinary and DEA licenses, membership dues for AVMA and AAEP, professional liability and license defense insurance, and CE allowances.

Noncompete Clauses

Noncompete and restrictive covenants typically prevent veterinarians from practicing equine medicine within a 35-mile radius for two years or to serve clients of the practice they are leaving. These covenants are often accompanied by the statement, “The Employee acknowledges that the restrictions imposed are reasonable; that they are necessary to protect the legitimate business interests of the Employer; and that such restrictions do not and will not impose an undue hardship on the Employee.” This is rarely true, because often, a spouse has obtained a job locally, a house has been purchased, or the choice was made to settle near family.

When a particular position doesn’t work out, these agreements might force equine veterinarians to take jobs in companion animal practices, from which they rarely return. Think carefully about restrictive covenants before signing a contract. If they appear in an internship contract, question how that makes sense.

Signing Bonuses

Some practices-often those owned by large corporations-offer signing bonuses, which can be exciting. Read these carefully, because most require you to pay them back if you leave during a specified period, even if you are terminated. Best practice would be to deposit those funds in a high-yield savings account until the necessary time has elapsed.

Final Thoughts

Knowledge is power and increases your confidence to ask for what you need. Negotiating a contract requires knowing what equine practices typically offer associates, hiring a professional to ensure the contract is fair and reasonable, and being an advocate for yourself in collaborative discussions.

Related Reading

• Business Briefs: The Changing Landscape of Noncompetes
• Early Career Insights: How to Choose the Right Veterinary Internship Position
• Early Career Insights: How Equine Vets Can Develop Foundational Skills

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