Stated Salary - Physician Contract Glossary

Stated Salary

Definition

A fixed amount paid to you, typically on a monthly or biweekly schedule.

Examples in Context

“Physician shall receive an annual salary of $200,000, payable in 24 installments.”

“The stated salary shall be paid in accordance with Employer's standard payroll schedule.”

Implications for Physicians

• Provides predictable and stable income.
• May not accurately reflect productivity if you exceed or fall below expected workloads.
• Fixed salary can limit your earnings unless paired with performance incentives.

Negotiation Tips

• Request a guaranteed cost-of-living adjustment (COLA) clause.
• Negotiate a salary review after your first year to account for performance improvements.
• Compare your offer with industry benchmarks such as MGMA data.

Red Flags and Pitfalls

• A locked-in salary with no performance-based incentives may limit your earning potential.
• Contracts without clear language on raises or periodic salary reviews can hurt long-term financial growth.
• Vague payment timelines may delay your income; ensure payment dates are clearly stated.

Related Terms

• Formula Compensation
• Bonus Structure
• Repayment Provisions

FAQs

• “Is my stated salary negotiable?”
  • Yes. Employers often have flexibility, especially for physicians with strong credentials or in high-demand specialties.
• “Does my stated salary include overtime?”
  • Typically no. Salaried physicians are generally exempt from overtime pay, but ensure your contract clarifies if additional duties are compensated separately.
• “How can I ensure my salary keeps up with inflation?”
  • Request a cost-of-living adjustment clause or periodic performance reviews tied to salary increases.

Legal Disclaimer

The information provided in this glossary is for educational and informational purposes only and should not be construed as legal advice. While we strive to provide accurate and up-to-date information, this content is intended to help physicians better understand common contract terms and does not replace professional legal guidance.

For personalized advice regarding your employment contract or other legal concerns, we strongly recommend consulting with a qualified attorney who specializes in physician employment contracts.

You can find experienced legal professionals through our Physician Contract Lawyer Directory.