Author: Alissa Allen

Business legal services in Silicon Valley

Commercial Leases – Good Reasons to be Reviewed by an Experienced Attorney

A commercial lease is a legally binding contract between a tenant (business or organization) and a landlord. The specific terms of the lease matter. They will govern the relationship between the commercial landlord and the commercial tenant. A lawyer should always review a commercial lease. Your attorney will ensure that the terms of the lease are clear, fair, and reasonably aligned with your business’s long-term needs. Here, our Fremont business attorney explains why it is so important to have your commercial lease reviewed by an attorney.

Commercial Leases are Lightly Regulated in California

In California, commercial leases are not subject to the same regulations as residential leases. Commercial tenants have less protection under landlord-tenant law. They are largely protected by contract law. Indeed, commercial leases are largely dictated by the terms agreed upon by both parties, and courts will generally enforce them as written. Without legal review, a business may unknowingly commit to burdensome terms, hidden fees, or one-sided obligations that could hinder the operations of your company and undermine its financial well-being.

Note: On January 1st, 2025, Senate Bill 1103 (SB 1103) took effect in California. The law provides some additional legal protections for “qualified commercial tenants.” These tenants are generally very small businesses, particularly in the restaurant industry.

Important Provisions to Be Aware of in a Commercial Lease

With a commercial lease, the basics always matter. You need to know about things like the monthly rate, the duration of the agreement, and any restrictions on the use of the property. Beyond that, commercial leases in California also often include additional (important) provisions, such as:

CAM/net charges: Common area maintenance (CAM) and net charges often include costs for property upkeep, but a key issue is whether major asset replacements or property improvements can be passed directly to the tenant. Without clear lease terms, tenants may be responsible for significant costs, such as roof repairs or an HVAC replacement.
CAM/NNN (included/excluded costs): Commercial tenants should carefully review what expenses are included in CAM and NNN charges. In some cases, landlords may attempt to shift excessive costs onto tenants. Some leases allow landlords to pass through expenses such as administrative fees, capital improvements, or largely unrelated operational costs.
Duty to repair and replace: A lease should clearly define which party is responsible for repairs and replacements, particularly for critical systems like plumbing, HVAC, and structural elements. Some agreements make the tenant responsible for maintaining all or part of systems even if they were at the end of their lifespan when the lease began.
Renewal (options to extend a lease): You need to understand your right to renew. An option to extend a lease is not always an automatic renewal. Rather, it may be a right that must be properly exercised under specific conditions. Tenants should carefully review the terms, including rent adjustments, deadlines for exercising the option, and any additional requirements that may limit their ability to renew.

Contact A California Commercial Lease Review Attorney Today

Lynnette Ariathurai is a California business attorney with extensive experience drafting, negotiating, and reviewing commercial lease agreements. If you have any questions about a commercial lease, we are here to help. Contact us today for a fully confidential, no obligation initial consultation. With an office in Fremont, we handle commercial lease reviews throughout the Bay Area.

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What is Private Mediation and How Does it Work to Resolve a Dispute?

Is your business locked in any type of dispute? If so, you are undoubtedly looking for the best option to resolve the problem in a favorable manner. Litigation has a lot of downsides—it can be time-consuming and expensive. Mediation is a form of non-adversarial alternative dispute resolution (ADR). Lynnette Ariathurai is a California lawyer with extensive experience handling business mediation. Here, our Fremont business attorney explains what private mediation is and discusses how it works to move a commercial dispute towards a resolution.

What is Private Business Mediation in California?

In California, private mediation is a voluntary, non-adversarial process that is an alternative to litigation. As explained by the California Department of Consumer Affairs, mediation is when “a neutral person(s) facilitates communication between the disputants to assist them in reaching a reconciliation, settlement, or other understanding” in a structured environment where parties to a dispute—including a commercial dispute—can attempt to work out a settlement.

How Mediation Works to Resolve a Dispute in California

Mediation can be a highly effective tool for resolving disputes in California—especially in cases where parties have at least some common ground, are interested in preserving a relationship, and/or want to avoid the time and cost of litigation. Here is an overview of how private mediation works:

The parties must agree to mediate: Private commercial mediation is voluntary in California. The process does not start until the parties to a dispute agree to mediate. For mediation to be effective, all parties must have a good faith intent to resolve the matter.
A neutral mediator is selected: The mediator is a trained professional who helps to facilitate communication and negotiation. The parties to a business dispute must select an agreed-upon mediator. It is best to look for a mediator with relevant experience.
You need to prepare for mediation: Proper preparation is key to mediation—not just to get the best outcome, but also to help move the case towards dispute resolution. You should gather and prepare all relevant evidence.
The mediator helps to facilitate resolution: The role of the mediator is to help facilitate the resolution of a dispute. To be clear, the mediator is not empowered to make any final decisions. It is their role to clarify key issues and facilitate a resolution.
Agreement is voluntary—parties can withdraw: In California, business mediation is fundamentally voluntary. The parties are not required to agree to a settlement. They retain the right to withdraw from mediation without an agreement if one cannot be reached.

Business mediation is complicated. To get the most out of the process, it is crucial that you and your company are properly prepared and that you know what to expect. A top-tier California business mediation lawyer can help you navigate all aspects of the process.

Contact Our California Business Mediation Attorney Today

Lynnette Ariathurai is a California business mediation lawyer who is committed to helping companies find the best solution. If you have any questions about the mediation process for dispute resolution, please do not hesitate to contact us for a fully confidential, no obligation consultation. From our Fremont office, we provide business mediation services throughout the Bay Area.

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Veterinarian Malpractice (Holding Vets Accountable for Professional Negligence)

As licensed professionals in California, veterinarians can be held liable for malpractice. It is a risk that needs to be considered along with the range of different considerations that need to be addressed—from the compensation structure to an office lease to making preparations for defending the business when something might go wrong. Within this article, our Bay Area business attorney for veterinarians highlights key points business owners should know about professional malpractice claims—and your options to protect your practice—in California.

What is Veterinary Malpractice?

Veterinary malpractice occurs when a veterinary professional fails to provide the standard of care expected in the treatment of an animal, leading to injury, worsening of a medical condition, or even death. Some of the most common examples of veterinary malpractice include misdiagnosis, incorrect treatment, rough handling of a pet, and negligence in surgical procedures.

All Veterinary Practices in California Need Adequate Insurance Coverage

The reality is that malpractice is a risk that business owners operating veterinary practices need to be prepared for. Even the best and most thorough of veterinarians cannot completely eliminate the risk of facing a malpractice claim. All veterinary practices in California should secure adequate insurance coverage to protect against malpractice claims and other risks. As explained by Veterinary Practice News, “veterinarians commonly purchase professional liability (malpractice) insurance to guard against the expense of defending against such claims.”

Steps to Take When Handling a Professional Liability Claim

Is your veterinary practice facing a professional malpractice claim in California? A proactive approach is a must. You do not want to run into problems—from a business perspective and/or a legal perspective. Here are four steps to take when facing a malpractice allegation:

Notify Your insurer: As soon as a potential veterinary malpractice claim arises, promptly notify your insurance provider to activate your professional liability coverage. Prompt notification is often required by a malpractice policy.
Gather information: The next step is to collect all relevant documentation related to the case, including medical records, treatment notes, and any correspondence with the pet owner. Detailed, organized information will help to build a defense.
Watch for complaint: Beyond any malpractice claim, a veterinarian may face a complaint before the California Veterinary Medical Board. Be sure to watch for complaints and to respond to any allegations proactively.
Develop a plan of action: Finally, veterinary practice owners should work closely with insurers and consult legal counsel to develop a strategic plan of action tailored to the malpractice claim.

Get Help from Our Bay Area Business Lawyer for Veterinarians Today

Lynnette Ariathurai is a solutions-focused advocate for business owners. If you have any specific questions or concerns about veterinarian malpractice protection, we are here as a legal resource. Contact us today for a confidential initial consultation. With an office in Fremont, our firm provides business services to veterinary practices throughout the Bay Area.

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Legal Considerations When Closing a Veterinarian Practice

Are you preparing to close a veterinarian practice in California? It is crucial that you take a proactive, detailed, focused approach. You need to comply with all state regulations and wind down your professional practice in an orderly manner so that you can best protect your financial interests. In this article, our Bay Area business lawyer for veterinary practices provides an overview of the legal considerations for closing this type of business.

Consideration #1: Regulatory Compliance

In California, there are regulatory requirements in place for winding down a business. Typically, the law requires business owners—including veterinary practice owners—to file the proper dissolution documents with the California Secretary of State for corporate practice and to notify all implicated parties, including clients, vendors, suppliers, and creditors.

Note: Proper disposal or transfer of controlled substances—in accordance with federal and state regulations—is also essential to prevent legal issues and ensure public safety.

Consideration #2: Employment Law

Veterinary practices should address labor and employment issues when closing their business, including plant closure laws. Try to keep your staff in the loop. Among other things, you will need to provide timely notice, handle the final paychecks and, potentially, manage employee benefits. Proper handling of employment law matters can help to prevent claims from employees.

Consideration #3: Client Communication and Client Records

A veterinary practice’s clients must be notified about the business closing. The California Veterinary Medicine Practice Act imposes certain communication/record requirements for professional practices that are winding down. Specifically, these duties include:

Notification to clients: Veterinarians are required to notify clients in a timely manner about the practice’s closure. The notification allows your clients to make alternative arrangements for their animal’s care.
Transfer of records: The veterinarian must ensure that patient records are appropriately transferred to another practitioner or returned to the client, as per the client’s wishes. Be sure that records are handled properly.

Consideration #4: Contractual Obligations

Does your veterinarian practice have any existing contractual obligations? Be sure to identify and resolve them. For example, seemingly simple things such as an office lease for a veterinary practice or SBA loan, must be proactively addressed. You do not want to face a breach of contract claim following the closure of your business.

Consideration #5: Finances and Taxes

When closing a veterinary practice in California, it is crucial to thoroughly manage all outstanding financial obligations, including settling debts with suppliers, creditors, and any service contracts to avoid legal complications. Beyond that, the practice must file final tax returns and, in doing so, declare the closure of the business.

After all debts and obligations have been paid, you can distribute the remaining assets among the owners of the veterinary practice in accordance with the ownership structure and/or operating/partnership agreements.

Set Up a Consultation with Our California Business Lawyer for Veterinary Practices

Lynnette Ariathurai is a top-tier business law attorney for veterinary practices. If you have any questions or concerns about the legal considerations when closing a veterinary practice, please do not hesitate to contact us for a completely confidential initial consultation. From our Fremont law office, we provide business services to veterinarian practices across the Bay Area.

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Merging Veterinarian Practices – What to Expect

Do you own and operate a veterinary practice in the Bay Area of California? Are you considering merging with another practice? Doing so may be a great opportunity to create business synergies and to grow your practice. At the same time, you need to be properly prepared. Mergers are complicated—especially for professional practices. Here, our Bay Area business attorney for veterinary practices highlights key things to know about merging veterinarian practices in California.

The Foundation of a Merger: Comprehensive Due Diligence

A business merger is the combination of two or more companies into a single entity. In California, merging veterinary practices must begin with comprehensive due diligence. Among other things, the due diligence process typically involves:

A detailed assessment of financial records
A comprehensive review of client databases
An assessment of human capital, including any employee contracts and benefits
Evaluation of all existing legal obligations for each practice
An understanding of compensation structures within the veterinary practice

Notably, the core purpose of due diligence is to uncover all potential risks and liabilities. It will help veterinary practice owners to consider the feasibility—and desirability—of the merger. Due diligence also typically includes reviewing each practice’s equipment to assess compatibility, vendor and customer key contracts.

Develop a Plan for Veterinary Practice Integration

Developing a strategic integration plan is crucial for merging veterinary practices successfully in California. The plan should outline how to combine operations, staff, and services in a phased approach to minimize disruption. Key elements often include aligning veterinarian medical protocols, unifying software systems, consolidating suppliers, and determining staff roles and responsibilities.

Be Prepared to Identify and Take Advantage of Operational Synergies

Successful mergers capitalize on operational synergies that will enhance efficiency and reduce costs. For veterinary practices in California, this might involve consolidating purchases to leverage better pricing, merging client lists to expand the customer base, and integrating technological resources to improve service offerings. In some cases, a merged veterinary practice may be able to share an office lease. Ultimately, the goal is a more efficient single veterinary practice.

Proactively Communicate with Clients (Transparency is Key)

A veterinary practice in California is only as strong as its relationships with its clients. Client acquisition can be expensive. It is crucial that the merging practices can continue providing high quality service to existing clients. Among other things, this means putting an emphasis on proactive communication. Transparency helps maintain trust and manage client expectations. You will need to obtain clients’ informed consent about the upcoming changes and make sure that they understand how they will benefit from improved facilities, expanded services, and/or better availability. If clients do raise concerns, be sure that they are addressed promptly.

Understand and Comply With all California Regulations

Navigating regulatory compliance is essential for veterinary practice mergers in California. This includes following all requirements of the California Veterinary Medicine Practice Act, local business licensing requirements, and relevant labor/employment laws. Compliance with these regulations is an absolute must when merging veterinary practices. A business lawyer with experience working with veterinarian practices in California can help.

Contact Our Fremont, CA Business Lawyer for Veterinary Practices Today

Lynnette Ariathurai is a business attorney with extensive experience working with veterinary practices. If you have any questions or concerns about merging a veterinarian business, we are here to help. Contact us today for a confidential initial consultation. From our Fremont law office, we provide business services to veterinary practices across the Bay Area.

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Legal Considerations When Entering Partnership in a Construction Company

Construction is a booming industry in California. There are many opportunities for businesses. You may be considering expanding your efforts in the industry by purchasing a construction company or entering a partnership. Before you enter partnership in a construction company in California, there are key things that you should know. In this article, our Fremont business lawyer for construction companies highlights the most important legal considerations to keep in mind.

Determine the Specific Legal Entity for Your Business

Any entrepreneur who is forming a business in construction in California must ensure that they have the right legal structure (entity) in place for their specific situation. Notably, general partnerships (GPs) in California can be established without formal state registration. A written agreement is strongly recommended for general partnerships. However, GPs do not offer liability protection and may not be the best option for a construction business. A construction company in California may also be set up as a limited liability company (LLC), S-corporation, or c-corporation.

Essential Considerations for Your Construction Partnership

Are you preparing to form a construction partnership in California? A proactive approach is essential as there are several legal considerations that need to be addressed for partnership businesses in the construction industry, including:

Partnership agreement/joint venture agreement: A well-crafted partnership or joint venture agreement sets clear expectations for all parties involved in the business or business project.
Contributions/equity: Each partner’s contribution to the partnership, whether in the form of capital, resources, or expertise, must be clearly documented and agreed upon.
Roles/responsibilities: Defining roles and responsibilities is vital to ensure that all aspects of every project are covered. It is crucial that each partner knows their duties.
Legal and regulatory compliance: Partners must be aware of and comply with all local, state, and federal rules, including obtaining required licenses and any necessary permits. Notably, you need a CSLB Contractor’s License to start a construction company in California.
Insurance coverage: Securing comprehensive insurance coverage is crucial for mitigating risks associated with construction.
Dispute resolution: Construction partnerships can run into issues. Establishing a method for dispute resolution can save partners a lot of time, money, and headaches.

Be Ready to Seek Professional Legal Guidance and Support

Setting up a construction company in California is not easy. It is normal to have a ton of questions about how your business should be formed and what steps must be taken to protect your financial interests and satisfy all legal requirements. A California business lawyer with experience working with companies in the construction industry can help you navigate complex legal considerations.

Get Help From a Fremont, CA Business Law Attorney for Construction Companies Today

Lynnette Ariathurai is an experienced California business lawyer with the skills and experience to represent companies in the construction industry. If you have any questions about the legal considerations when entering partnership in a construction business, please do not hesitate to contact Lynnette for a confidential consultation. She represents businesses across the Bay Area.

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Merging Veterinarian Practices – What to Expect

Are you a veterinarian in California who owns a practice and is preparing to expand or transform it? Building a group veterinary practice is complicated. You may be considering merging your professional practice with another existing business. Here, our Fremont business lawyer for veterinary practices highlights what you should expect if you are preparing to merge veterinary practices in California.

Background: Understanding What it Means to Merge Veterinary Practices

Broadly defined, a merger is the combination of two businesses into one. Merging veterinary practices involves integrating two (or more) existing clinics or veterinarians into one practice. It may be a complex business transaction. It is crucial for practice owners who are considering/preparing to merge their businesses to align goals, standardize care protocols, effectively communicate changes to both staff and clients, and ensure that their best financial interests are protected.

Know What to Expect: Consider Synergies, Logistics, and Risks

Merging veterinarian practices in California? You need to know what to expect—especially as it pertains to the synergies, logistics, and potential risks. Here is an overview of some key issues to keep in mind:

Ownership: You will need to determine the precise ownership structure of the newly created business. Among other things, this includes determining each partner’s equity stake and the compensation structures for the veterinary practice.
Office space needs: Evaluating the adequacy of current office spaces is essential. A merged practice may require additional space or restructuring of an ongoing commercial lease. Alternatively, you may be able to effectively share space and reduce costs.
Employees: Integrating employees from merging practices must be managed with clear communication and a transparent transition plan.
Branding: A unified branding strategy is critical post-merger to ensure consistency across all service points. How exactly you should merge your branding depends on several situation-specific factors.
Insurance coverage: Mergers necessitate a thorough review of existing insurance policies to consolidate coverage and eliminate any overlaps or gaps. Post-merger, you may be able to reduce your total insurance costs.
Existing contracts: All existing contracts—from commercial leases to vendor/supplier agreements—should be reviewed to ensure they remain beneficial.
Outstanding liens: It is imperative to resolve any outstanding liens on either practice before the merger. Once a merger is complete, the new business will generally be liable for all the outstanding debts, obligations, and liabilities of the previously existing veterinary practices.

A business merger can be complicated—especially so when you are dealing with veterinary practices. You do not have to figure out everything on your own. A California business lawyer can help you understand your rights, your options, and ensure a smooth transition.

Contact a Fremont, CA Business Lawyer for Veterinary Practices Today

Lynnette Ariathurai is a California business attorney with extensive experience representing veterinary practices. If you have any questions about what to expect when merging a veterinarian practice, she is here to help. Contact Lynnette today for a completely confidential initial consultation. From her Fremont law office, she works with veterinary practices throughout the Bay Area.

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Employees vs. Contractors in Construction – Labor Designation

Construction is a labor intensive business. All companies in the construction industry should have a well-designed structure in place for handling their workforce. Some work may be performed by contractors instead of employees and there are strict rules and regulations regarding worker classification. Improper labor designation could lead to big problems. Here, our Fremont employment law attorney explains the key things business owners and companies in the construction industry need to know about the employee vs. independent contractor labor designation in California.

Employees Must be Properly Classified

As a starting point, all construction company owners and operators must understand that their workers need to be properly classified – either as an employee or independent contractor. A company that improperly classifies workers in California can face serious sanctions and criminal charges. Here is an overview of California’s employee and contractor designations:

Employee: An employee is an individual who performs duties dictated or controlled by others and is paid a regular wage or salary. This would include all workers who do not have a CSLB license, or another qualified California professional license.
Contractor: A contractor is a CSLB licensed self-employed individual or worker from another company who provides services based on a written contractual agreement.

A benefit of using contractors instead of employees is that employers are not responsible for certain costs, including things like workers’ compensation insurance, and other benefits that may be offered to an employee, ie: paid sick leave, etc.

Know the Law: California’s ABC Test for Worker Classification

Our state has some of the most comprehensive, employee-friendly worker classification standards in the country. As explained by the California Labor and Workforce Development Agency, the state uses the “ABC test.” It was codified into law in 2019 by Assembly Bill 5. Here are the three key points that would designate a worker as a contractor, given that all three are met:

The worker is free from the control and direction of the hiring entity (construction company) in connection to the performance of the work.
The worker performs work that is outside the usual course of the construction company’s primary course of business.
The worker must customarily engage in an independently established trade, occupation, or business of the same nature that they are doing for the construction company.

Most workers fail B. above.

Here is a simple example of how a construction company can hire an independent contractor. Imagine that your company needs a modest amount of plumbing work done for a project in the Bay Area. You hire a CSLB licensed self-employed plumber to complete that specific task with a written independent contractor agreement. In most cases, that plumber can be hired as an independent contractor. He or she does not have to become an employee of your business.

We Help Construction Companies Navigate Labor Designation Regulations

We are a law firm that represents businesses and business owners in California. In doing so, we are experienced in working with construction companies. Our team assists clients to:

Ensure compliance (prevent claims): We help your construction company remain compliant with labor laws—thereby reducing the risk of costly legal claims. Our attorney provides thorough audits of your current labor practices, ensuring that each worker’s classification aligns with California state laws. We take a proactive approach, helping our clients prevent claims through proper worker classification practices.
Independent Contractor Agreements. We draft Independent Contractor Agreements for our clients to use to hire licensed CSLB contractors from time-to-time.
Navigate complaints (defend claims): Should your company face claims of misclassification, our team is prepared to defend your practices. We offer expert legal defense that includes gathering necessary documentation, representing your interests in legal forums, and negotiating on your behalf. Our strategies are tailored to present a robust defense, demonstrating that your labor practices are compliant with current laws.

Contact Our California Business Law Attorney for Construction Companies

Lynnette Ariathurai is an experienced and solutions-focused advocate for employers, including companies in the construction industry navigating employee vs. contractor labor designation issues. Contact us today to arrange your confidential consultation. With an office in Fremont, we work with construction companies throughout the Bay Area.

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Considerations When Buying a Construction Company

The California Construction and Industrial Materials Association (CalCIMA) cites data showing the construction industry generates nearly $35 billion in revenue in our state each year. There are a lot of options for entrepreneurs in construction; you may be considering purchasing a construction company. Here, our Fremont attorney for buying a business highlights key considerations to keep in mind when buying a construction company in California.

Research the Market, Develop a Business Strategy

Before purchasing a construction company, thorough market research is essential. As a starting point, prospective buyers should be sure to understand the current market conditions—such as the demand for construction services, competition, and the economic trends in your target region. This knowledge will guide your decisions throughout the purchase process and help you identify the company that best aligns with your long-term objectives.

Know Your Options to Structure a Construction Business Purchase

How are you going to structure this business purchase? It is an important consideration. There are three general options available when buying a contractor business in California:

Stock purchase: In a stock purchase, the buyer acquires the selling company’s stock directly from the shareholders. In effect, the buyer obtains full ownership over the legal entity. Notably, this method includes assumption of all assets and liabilities.
Asset purchase: With an asset purchase, a buyer selects specific assets and liabilities they wish to acquire from a business, rather than taking over the entire entity. In some cases, this approach can minimize risk as the buyer can avoid inheriting unwanted liabilities.
Business Purchase. Provided you have a California State License Board (CSLB) licensed contractor, you may want to purchase the licensed business, which would include using the same tax ID and credit of the business, same license, but you take the business “as is” with all its assets and debts. There may be known and unknown risks in this approach, but you do not have to wait for a new entity license from CSLB.

Whether a stock purchase, business purchase or asset purchase makes more sense when buying a construction company is highly case-specific. An attorney can help you weigh your options and provide legal assistance in minimizing the risks.

Ensure You can Obtain All Required Licenses

Licensing is a critical issue that must be addressed when buying a construction company or any type of contractor business in California. The state requires construction firms to hold valid licenses for the specific types of work they conduct. It should be noted that an individual contractor’s license is not transferable in California. However, an entity license may be transferred in two of the above options. As such, the new owner of a construction company may be required to either obtain their own license through the Contractors State License Board (CSLB) in an Asset Purchase, or possibly transfer the license with a Stock Purchase or Business Purchase. An Attorney can assist you with either the license application or change of an existing license as required by CSLB.

Perform Comprehensive Due Diligence

Conducting comprehensive due diligence is a must when purchasing a construction company in California. The process should encompass an assessment of all financial records, including debts, assets, revenue streams, and profitability. Beyond that, you should evaluate the company’s client base, project pipeline, and the status of ongoing contracts to understand the company’s operational health. Finally, legal due diligence is also important. You should check for any ongoing litigation, compliance with employment laws, and the validity and transferability of contracts. An attorney can help.

Contact Our California Attorney for Buying a Construction Company Today

Lynnette Ariathurai is a business lawyer with the experience to advise clients buying a construction company. Contact us now for a confidential initial appointment. From our Fremont office, we help entrepreneurs buy businesses throughout the San Francisco Bay Area.

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Compensation Structures in Veterinary Practices

Know the Legal Structure of Veterinary Practices in California

As with other types of businesses, veterinary practices must have the right legal foundation to thrive. Under the California Veterinary Medicine Practice Act, veterinarians cannot form their business as a partnership or a limited liability company (LLC). Instead, group veterinary practices should be set up as a professional corporation (PC). The PC structure offers some important legal advantages, including liability protection and the ability to be taxed as an S corporation.

The Most Common Ways to Structure Pay for Veterinary Professionals in Group Practices

Within a group practice that is established as a PC in California, there are a few different approaches for structured compensation packages for veterinarians, including:

Veterinary compensation based on individual collections: One common approach for compensation is to base it on individual collections. With this, veterinarians are paid as a percentage of the revenue that they personally generate.
Veterinary compensation based on group collections: Another prevalent method is compensation based on group collections. With group collections, revenues are pooled and distributed among veterinarians according to predefined criteria.
Hybrid model (compensation based on both): Of course, you do not have to choose between one compensation structure or the other. Many group veterinary practices in California use some form of a hybrid model—with both individual and group collections being used to determine compensation.

What to Know About Veterinarian Compensation and Professional Ethics

The Stark Law and California anti-kickback regulations strictly restrict certain compensation methods for physicians. With limited exceptions, doctors are barred from self-referrals and restricted from receiving “kickbacks” for recommending certain products and services. Veterinarians in California are not subject to the same laws. However, the California Veterinary Medical Board—which regulates professional ethics—could take adverse action against a group veterinary practice that has a compensation structure that violates state law.

Why Rely on a Bay Area Business Law Attorney?

Determining a compensation structure for your veterinary practice is complicated. Our founder and managing attorney Lynnette Ariathurai caters specifically to business owners. We are proactive. Along with other measures, our California business lawyer for veterinary practices will:

Hear what you have to say and answer your questions about compensation structure
Gather and prepare all financial documents, records, and supporting information
Help you determine the best compensation structure for your veterinary practice

Contact Our California Business Lawyer for Veterinarians Today

Lynnette Ariathurai is a business lawyer for veterinarians. If you have any questions about compensation structures for veterinary practices, our legal team can help. Contact us today to arrange your confidential initial appointment. From our Fremont office, we provide business services to veterinary practices across the Bay Area.

To set up a confidential, no obligation consultation with a top-tier California business attorney, please contact us today.

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