By Michael Dinsio, MBA & Paula Quinn, BSDH

In a recent episode of Dental Unscripted, hosts Mike Dinsio and Paula Quinn sat down with Jill Hasselman, Chief Growth Officer at HR for Health. They ripped the bandage off one of the most uncomfortable topics in the industry: HR Compliance for Dental Practices

The stark reality is many dentists feel “held hostage.” Meaning they fear that one wrong move, one difficult conversation, or god forbid firing someone could lead to a lawsuit that destroys their reputation and drains their bank account. But as Jill explained, the solution isn’t to avoid conflict, it’s to run toward it and build a fortress of documentation with a proactive approach.

Dental practice management is dealing with employees and managing them. So as a business owner and leader you can reclaim control of your business. We break down how HR software is the best way to manage these challenging situations.

Mitigating Dental Startup Liability: The Legal Risks of “Borrowed” Employee Handbooks

For example if you’re in the chaotic phase of starting a dental practice, HR often feels like an afterthought. You’re focused on construction, equipment, and marketing. So, when it comes time to create an employee handbook, what do most doctors do?

According to Jill, the number one source of employee handbooks is “borrowing” one from a colleague.

Although it seems like the easiest and quickest solution, this is a liability time-bomb. First of all, a handbook written for a practice in Texas does not apply to a practice in California. Or more commonly a policy written five years ago does not account for today’s labor laws. By copying a handbook, you are essentially signing a predetermined contract with your employees. This handbook is the “ground rules” for employees. Just adopting these rules without giving much thought sets you up for failure. You’re leaving yourself open to legal risk.

If you are currently in the process of starting a dental practice, DO NOT cut corners here. HR Compliance for Dental Practices is easier to implement from the start! This is the best time to set up solid HR policies and best practices. Your handbook is the foundation of a practice’s culture. If it’s generic, your culture will reflect that “generic” clock in clock out mentality. If it is specific and legally sound, it protects you and your employees from day one.

Consistency: The Secret to Dental Team Organization & Optimized Communication

The hardest part of dental practice leadership isn’t creating the rules; it is enforcing them. We all have that “favorite” employee, the dental assistant who has been with you for ten years! They know your clinical flow perfectly, but they are chronically 10 minutes late everyday.

You let it slide because they are productive! But then, you hire a new front desk admin who starts showing up late. So now when you try to correct the new hire, you have a problem. You have established a precedent that tardiness is acceptable.

Jill emphasizes that consistency is the only way to sleep at night. You must hold your “rockstar” employees to the same standards as your new hires. If you don’t, you’re opening yourself up to discrimination claims.

This is where full practice management consulting becomes vital. It’s difficult to step back and see blind spots when you are in the operatory all day. An outside perspective can help you implement the systems. There are tools and resources, like automated time clocks and “pop-up” notifications for tardiness. There are best practices and verbiage that helps remove emotional responses from practice management. These types of systems ensure HR compliance for dental practices.

Strategic Documentation Protocols: Protecting Dental Practices Against Wrongful Termination Claims

“If it isn’t written, it didn’t happen.” Everyone knows this rule for clinical notes, yet so many dentists fail to apply it to their business operations.

If a disgruntled employee sues a practice, they rarely sue because they were fired for being late. They typically find a lawyer who will find “wrongful termination” or “discrimination”. The only defense you have against these massive lawsuits is documented patterns of disruption and a paper trail.

Objective documentation is your best friend. This doesn’t mean writing an emotional diary entry about how an employee annoyed you. It means logging specific facts:

• Date: Monday, Oct 4th.
• Event: Employee clocked in at 8:15 AM (Shift starts at 8:00 AM).
• Action: Verbal warning given regarding attendance policy.

If you have a method for documenting a history of performance issues, a lawyer will have a much harder time building a discrimination case against you. If you have nothing in writing, it is simply your word against theirs. 

Dental Unemployment Claims: Avoid a High-Stakes Wage and Hour Lawsuit

One of the more shocking pieces of advice from Jill Hasselmann on the podcast: Unemployment, Do not fight it!

This goes against every instinct a business owner has. You feel wronged. You feel the employee didn’t do their job, so why should they continue to get paid?

Here is the reality of the situation. Fighting an unemployment claim is the quickest way to escalate a quiet exit into a boldened lawsuit. When you aim to deny unemployment, you are taking a jab at the ex-employee. They get angry, then they go to a labor attorney. That attorney won’t just look at the unemployment claim; they will dig into the entire offices meal break records, your overtime calculations, and your handbook policies.

Suddenly, a $400 unemployment dispute turns into a $50,000 wage and hour lawsuit. As Jill noted, it is an “ego trap.” Let the unemployment go. It is a very small price to pay to avoid a forensic audit of your entire HR history.

HR Due Diligence for Dental Practice Acquisitions: Transitioning Teams and Aligning Benefits

HR challenges are not unique to startups. If you are in the market for buying a dental practice, you are not just buying patient files… you’re inheriting a team and a culture.

You might be acquiring a practice where the office manager has five weeks of vacation and is paid significantly above market rate. This may have been the past owner’s oversight, or just a longstanding relationship. But maybe that employee isn’t carrying their weight anymore. Can you change this?

The answer is yes, but you must do it carefully. You can change policies at any point going forward, provided that your handbook allows for it. You also must follow local and state laws regarding “earned” benefits like vacation time in certain states (e.g., California).

The acquisition transition period is critical. New ownership is a good time to just reset expectations by implementing new compliance systems. However, stripping away benefits without a strategy will lead to mass turnover. This is why having dental consulting support during an acquisition is non-negotiable. You need an experienced and professional strategy to blend the old culture with your new vision without causing a mutiny.

Understanding EPLI Coverage Gaps: Addressing Wage and Hour Compliance in Dental Offices

Many dentists believe they are safe because they have Employment Practices Liability Insurance (EPLI). While EPLI is essential, Jill warned of a massive gap: Most EPLI policies do not cover wage and hour claims.

Wage and hour claims (unpaid overtime, missed lunch breaks, off-the-clock work) are among the most common lawsuits in dentistry. If your team is working through lunch or clocking out but staying to clean ops, you are still liable. And your insurance likely won’t save you.

The only protection against wage and hour claims is rigid adherence to the local state laws and utilizing an accurate and precise time-tracking software. For example HR for Health is an excellent solution in managing your

Sleep at Night Knowing HR Compliance in Your Dental Practice is Covered

HR does not have to be a nightmare. It is simply a system, just like a sterilization center or a scheduling protocol. Just creating that system moves the practice away from an emotional, gut feeling, reactive dental practice management backsliding. A strong system moves toward consistent, documented leadership, you stop being a hostage in your own office.

As Mike Dinsio and Paula Quinn often say, ownership is a journey. Whether you need help training your front office to handle these administrative tasks or you need a comprehensive plan to restructure your team, NEXT LEVEL CONSULTANTS tackles all this and more when working with doctors on their practice.

---

For more no-nonsense advice on running a successful practice, subscribe to the Dental Unscripted podcast or contact Next Level Consultants today to schedule your free consultation.