Key Takeaways
- Conduct a full HR and compliance audit before year-end.
- Update employment agreements, handbooks, and contractor arrangements to reflect evolving labor standards.
- Prepare for anticipated 2026 tax changes — evaluate structure, deductions, and retirement strategies.
- Tighten regulatory and data protection protocols to avoid costly compliance issues.
- Develop strategic growth plans that align with changing market conditions and technology advancements.
Human Resources and Employment Law Review
A strong employment foundation is essential to the success and stability of your dental practice. As workforce expectations evolve, so too do the laws that govern pay, workplace behavior, and employment structures.
Key Actions for 2026 Preparation:
- Review Employment Agreements:
Ensure all contracts — especially for associates and clinical staff — clearly define compensation, termination procedures, and restrictive covenants. Update language to reflect current legal standards and enforceability trends.
- Refresh Employee Handbooks:
Policies around workplace conduct, leave entitlements, and remote or hybrid arrangements should be updated annually. Include clear anti-harassment, anti-discrimination, and data privacy sections.
- Reassess Independent Contractor Status:
Misclassifying associates or hygienists can expose practices to significant back-pay and benefits liabilities. Review all contractor relationships and confirm that they meet the correct legal and functional criteria.
- Wage and Hour Compliance:
Audit payroll systems and ensure overtime and bonuses are properly categorized. Review incentive and commission structures for compliance and transparency.
A consistent, well-documented HR framework not only reduces legal exposure but also builds trust and retention among your team.
Regulatory and Compliance Matters
Regulatory oversight in the dental industry continues to expand. Ensuring full compliance with healthcare, privacy, and advertising regulations is critical to maintaining a positive reputation and avoiding penalties.
Key Actions for 2026 Preparation:
- Privacy and Data Security:
Review data storage, encryption, and patient communication systems. Conduct an annual privacy and security risk assessment to identify gaps in compliance.
- Patient Care and Recordkeeping:
Confirm that clinical documentation, consent forms, and sterilization protocols meet current professional standards. Keep policies well-documented and consistently implemented.
- Marketing and Advertising:
Regularly review promotional materials — including websites and social media — for accuracy and compliance with professional advertising rules. Avoid unverified claims or misleading testimonials.
- Licensing and Continuing Education:
Track all professional licenses, facility permits, and training certifications to ensure timely renewal. Implement a centralized system for compliance monitoring.
Compliance should not be viewed as a once-a-year task — it’s a continuous process that protects both your patients and your practice.
Tax Planning and Structural Considerations
The financial and tax environment for dental practices is expected to shift significantly in 2026. Proactive planning can help practices maintain profitability and minimize risk.
Key Actions for 2026 Preparation:
Assess whether your practice’s business structure still supports your financial and operational goals. Evaluate potential restructuring options to optimize tax efficiency.
- Maximize Deductions and Investments:
Consider timing for large purchases such as new equipment or technology upgrades. Strategic investments before the end of 2025 may offer better deduction opportunities.
- Retirement and Succession Planning:
Strengthen or establish retirement plans that maximize contributions and tax benefits. Begin long-term succession planning — including ownership transition strategies — well before retirement discussions become urgent.
- Coordinate with Advisors:
Align your legal, tax, and accounting advisors to ensure consistent strategies across all areas of your business.
Being tax-efficient is not just about minimizing liabilities; it’s about creating a structure that supports sustainable growth.
Growth and Strategic Planning
As the dental marketplace becomes more competitive, practices that plan strategically will thrive. Growth in 2026 and beyond will be defined by innovation, adaptability, and foresight.
Key Actions for 2026 Preparation:
- Evaluate Market Opportunities:
Consider expanding your service offerings, adding specialty care, or exploring partnerships and acquisitions to strengthen your market position.
Digital workflows, cloud-based management tools, and AI-assisted diagnostics are transforming dentistry. Before implementation, assess data protection, vendor terms, and integration risks.
- Review Facilities and Lease Agreements:
Revisit lease terms, renewal options, and space utilization. Strategic negotiations can reduce long-term costs and create operational flexibility.
- Update Governance Documents:
Review and update partnership or ownership agreements to reflect current business realities, including buy-sell provisions, voting rights, and succession triggers.
Strategic growth requires balancing opportunity with due diligence. Legal and financial planning should go hand in hand with your operational goals.
Looking Ahead
?
2026 is shaping up to be a pivotal year for dental practices. Shifts in regulation, workforce dynamics, and financial policy will create both challenges and opportunities.
By investing time now in HR compliance, regulatory diligence, tax strategy, and growth planning, your practice can enter the new year stronger, more efficient, and better prepared for the future.
Oberman Law Firm’s Dental Group provides comprehensive counsel on employment, regulatory, tax, and corporate matters.
Call us today and be prepared for 2026.