Episode 179: From Contractors to Employees — What Therapists Need to Know

Episode Summary Thinking about switching your group practice from 1099 contractors to W-2 employees? You’re not alone—and you’re not crazy for feeling overwhelmed by it. In this episode, Julie talks with group practice owner and consultant Amy Dover about her real-life journey making this transition. Amy shares what triggered the change, the surprises along the way, and what she wishes she knew from the start. Labor laws, compensation shifts, team dynamics, and aligning your business model with your values...it's all in this episode! Here’s why this episode is a must listen: You’ll learn what to expect (including some hard truths) when you make the W-2 switch You’ll understand how misalignment between your business model and operations can shrink your profit margin You’ll get honest insight into what happens after the dust settles—and why Amy has no regrets Episode Highlights 00:45 – Why this is one of the most requested topics among therapists 02:00 – Amy’s rapid growth—and early red flags 03:40 – The legal wake-up call: “This is a W-2 setup in disguise” 05:50 – Choosing alignment: why Amy shifted to employees 07:15 – Rolling it out: legal prep, communication, and transparency 08:30 – When kindness isn’t enough to avoid legal risk 10:00 – The emotional weight of leadership and unexpected team changes 11:50 – Over half the team left—what Amy learned through attrition 16:00 – Julie: “We can’t invest in growth if the numbers don’t work” 18:20 – “No one keeps their full fee”—a reality check for therapists 20:00 – Life after the storm: alignment, faith, and steady referrals 22:00 – Transition timelines: why 12+ months is realistic 23:00 – Julie and Amy: the sooner you decide, the smoother it goes Resources Wise Practice Consulting – Amy Dover's Bio & Services Money for Therapists Practice Startup - https://www.greenoakaccounting.com/startup GreenOak Accounting - www.GreenOakAccounting.com Therapy For Your Money Podcast - www.TherapyForYourMoney.com Profit First for Therapists - www.ProfitFirstForTherapists.com Profit First Academy - www.ProfitFirstForTherapists.com/Academy Podcast Production and Show Notes by Course Creation Studio