No Severance Agreements - Dental Practice Owners - Beware

Termination risk does not end when an employee leaves a dental practice. Post-termination actions—including severance agreements, final pay, and communication—can create additional liability if not handled properly. Federal laws such as the Older Workers Benefit Protection Act impose strict requirements for valid waivers of claims, particularly for employees over 40.

In dental practices, severance agreements are often used informally or without proper legal review. However, failure to include required disclosures, consideration periods, and revocation rights can render these agreements unenforceable. This means that an employee who signs a severance agreement may still have the ability to pursue legal claims against the practice.

Additionally, inconsistent post-termination communication—such as negative references or conflicting explanations—can create further risk. Dental practices must ensure that all aspects of the termination process are handled consistently and professionally.

Conclusion

Post-termination risk is a critical but often overlooked aspect of employment management in dental practices. Properly structured severance agreements and consistent communication practices are essential to minimizing ongoing liability. Practices that fail to address this phase effectively may remain exposed long after the employee has left.

Call to Action for Dental Practice Owners

• Use legally compliant severance agreements for all terminations
• Ensure compliance with OWBPA requirements for employees over 40
• Standardize post-termination communication protocols
• Review all termination packages with legal counsel
• Maintain consistency in references and final pay practices