The State of Veterinary Contracts: 2025 Year in Review

As a veterinary contract attorney, my team and I spent 2025 on the front lines of associate employment negotiations. Over the course of the year, we reviewed close to 1,000 veterinary employment contracts for both general practitioners and specialists across the United States.

The takeaway from 2025 is clear: the veterinary job market remains strong, and negotiation is still very much alive. Employers are willing to negotiate, but how that negotiation works, especially with corporate groups, continues to evolve.

Below are the most important veterinary contract trends we saw in 2025, and what they mean for associate veterinarians heading into 2026.

Compensation & Production: A More Nuanced Model

Production-based compensation remains the foundation of most veterinary employment agreements. However, in 2025 we saw production calculations become more sophisticated:

• Separation of services vs. products Most contracts now distinguish between professional services (exams, procedures) and products (medications, food), allowing practices to more accurately track revenue and incentive alignment.

• Exclusions from production calculations A growing trend is excluding routine pharmacy refills and preventive medications from production. While this can slightly reduce gross production, it reflects a shift toward incentivizing higher-value clinical services.

• Urgent care and emergency practices lead GP compensation Among general practitioners, urgent care and emergency-focused practices continue to set the top of the salary market.

  
  

Signing Bonuses: Diverging Trends for GPs vs. Specialists

Signing bonuses remained a key negotiation point in 2025, but trends varied significantly by role.

General Practitioners

• Bonuses softened slightly compared to 2024

• Repayment (clawback) provisions of 1–2 years remain common

• These are frequently negotiable to pro-rated repayment structures

Specialists

• Signing bonuses are stronger than ever

• Negotiation flexibility is high

• Bonus amounts reflect continued demand for specialty care

In both cases, repayment terms are often where meaningful improvements can be made.

Restrictive Covenants: Still Here, Still Negotiable

Despite popular legal speculation, non-compete provisions remain very much present in veterinary contracts. That said, they are often highly negotiable:

• Distance and duration Typical ranges remain 1 to 2 years, with meaningful flexibility on geographic radius.

• Scope of practice limitations Employers are increasingly open to narrowing restrictions to only directly competitive services — allowing room for relief work, shelter medicine, or non-overlapping roles.

Non-Solicitation vs. Non-Service

One concerning trend is the rise of non-service provisions, which prohibit an associate from treating former clients regardless of who initiates contact. Our negotiations focus on restoring true non-solicitation language, preserving client choice.

Exclusivity Provisions on the Rise

We saw a significant increase in clauses restricting outside work, including relief shifts, emergency coverage, and at-home euthanasia. The good news: most employers will allow reasonable carve-outs when negotiated.

Work-Life Balance: A Clear Shift

One of the most positive developments in 2025 was the shift toward sustainable schedules:

• 32–36 hours increasingly defined as full-time

• Rare to see contracts defining full-time as over 40 hours

• Very few mandatory emergency or on-call requirements

  
  

The Corporate Practice Reality

The majority of negotiations we handled involved private equity-backed corporate groups, and the negotiation dynamic has changed:

• Negotiations now involve more back-and-forth

• Corporate recruiters often expect veterinarians not to negotiate

• Initial “no” responses are common

• Persistence is key, those who continue negotiating often achieve far better terms

  
  

Special Corporate Situations

Negotiations During Practice Acquisition

We assisted with dozens of negotiations where a practice was being acquired by a corporate group. These are high-pressure environments, and associates must ensure that every negotiated term is reflected in writing.

Joint Ventures & Partnerships

We saw a sharp increase in corporate joint ventures and partnership arrangements, both start-ups and acquisitions. These agreements involve complex structures, including:

• Debt obligations

• Operating agreements

• Buy-sell provisions

• Strong restrictive covenants

This is one area where experienced counsel is essential. A poorly reviewed agreement can limit career flexibility for decades.

Contract Structure Trends

• At-will employment is increasing

• Contract length remains overwhelmingly one year

• Longer terms (2–3 years) are often negotiable down

• Negative accrual is fading, and often removable with negotiation

  
  

Benefits: Gains, Plateaus, and Declines

Trending Up

• PTO increases

  • GP new grads: 2-3 weeks

  • Experienced GPs: 2-3 weeks

  • Specialists: 3-4 weeks

• Paid CE leave and paid sick leave

• AVMA & state VMA dues

• VIN subscriptions

• AI-assisted scribing for medical records

Stable or Declining

• Health insurance contributions (rarely 100%)

• CE stipends ($2,000–$2,500 for GPs)

• HSAs less common

• Paid parental leave remains rare

• Student loan repayment declining due to CARES Act expiration and tax consequences

  
  

Final Takeaway

2025 confirmed that this remains a seller’s market for associate veterinarians — but leverage only matters if it’s used. Employers are negotiating. Corporate groups are flexible,

but often only after persistence.

For veterinarians entering new roles or renegotiating existing contracts, the message is simple: You have leverage. Informed, strategic negotiation still works.