Passed — Now What? · 6 min read · April 15, 2026
Your FNP employment contract is one of the most consequential documents you will ever sign. It defines your compensation, your scope of practice, your work schedule, your benefits, your non-compete obligations, and the terms under which either party can end the employment relationship. Most new FNP graduates sign their first contract without fully understanding what it says — and many regret it.
The most important thing you can do before signing an FNP employment contract is to have it reviewed by a healthcare attorney. The cost of a contract review — typically $300 to $600 — is a small investment relative to the multi-year commitment you are making.
The non-compete clause is the most consequential and most commonly problematic provision in FNP employment contracts. A non-compete clause restricts your ability to practice within a defined geographic area for a defined period after leaving the employer. Overly broad non-compete clauses — those covering a large geographic area for a long period — can significantly limit your career options if the employment relationship ends.
Before signing, understand exactly what the non-compete clause covers, whether it is enforceable under your state's law (some states do not enforce non-compete clauses for healthcare providers), and whether it can be negotiated to a more reasonable scope.
"The non-compete clause is the provision that most often comes back to haunt FNPs who did not read their contracts carefully. Understand it before you sign."
Understand exactly what malpractice insurance the employer provides: the coverage limits, whether it is occurrence-based or claims-made, and — critically — whether tail coverage is included. Claims-made policies cover only claims made while the policy is active; if you leave the employer and a claim is filed after your departure, you are not covered unless you have tail coverage. Tail coverage can cost $10,000 to $30,000 or more.