GPR016 - Legal Reality Check for Therapists with Employment Lawyer Lori Goldstein - Group Practice (R)evolution
“We're all people. We're human beings. Life happens; have some flexibility, understand work-life balance and follow the laws.” ~Lori Goldstein
Lori Goldstein explains how employment law intersects with group practice operations, including therapist classification, workplace policies, compensation structures, hiring dynamics, and the growing tension between relational leadership and legal compliance.
These are weird times. The laws that society has operated under for so long are shifting, including those that govern work. This realignment impacts you whether you’re a group practice owner OR a therapist staffer.
If you take only one lesson away from my conversation with Lori Goldstein, award-winning employment lawyer, let it be this: If you’re not sure, then ask a lawyer.
Simple, sage advice from a pro. Lori has spent four decades advising clients on employment matters, including discrimination, harassment, retaliation, wage and overtime issues, employment agreements, and independent contractor classification. She handles claims before the Equal Employment Opportunity Commission (EEOC) and the Department of Labor. She also conducts workplace training and audits.
Common group practice legal issues include:
Misclassification: 1099 vs W-2 Therapists
Non-Competes & Non-Solicits in Work Agreements
Workplace Compliance & HR Discrimination Risk
Generational Workplace Expectations
Unethical Private Equity Practices
Therapist vs Business Owner Role Confusion
Communication Failures Leading to Legal Disputes
Lori and I discussed the distinct ways therapists and lawyers approach office procedures and hierarchies. Those differences can inform the creation of equitable workplaces. “Mental health practice owners, for the most part, are also therapists,” she observes. I agree! It’s in our nature to nurture first, then do the biz part second (or last).
Practice ownership requires empathy. It also calls for strategic thinking and an ability to identify and then pay for all the tasks that aren’t naturally in our wheelhouse. “You don't have to know how to do everything,” offers Lori. “Get an HR person, get a bookkeeper, have an employment lawyer and a business lawyer.”
Then there are the generational dynamics at play in today’s work environment. Bad vibes and misunderstandings can land both sides in court. “I represent a lot of mental health practices, and I've heard that the younger generation has a different work ethic or work/life balance expectations. I applaud them,” says Lori. “And I’ve seen a lot of practice owners work intentionally to make it a team.”
Still, bad exits happen. “Non-competes and non-solicits have their place in certain industries. It's rare that a practice owner even wants to enforce or have a non-compete,” says Lori. “But, patients have the ultimate right to choose their healthcare provider, so there's only so much you can do.”
Opportunities abound for new ways of working together. Just make sure you consult a lawyer first.
RECOMMENDED EPISODES
Group Practice (R)evolution: The Ideals of Therapy vs the Limitations of Capitalism with Jeff Levy
MENTIONED IN THIS EPISODE
U.S. Equal Employment Opportunity Commission
Illinois Department of Financial & Professional Regulation
GUEST CONTACT & BIO
Website
Lori Goldstein is an employment lawyer who has represented employers and employees since 1984. She advises clients on employment matters including discrimination, harassment, retaliation, wage and overtime issues, employment agreements, and independent contractor classification. Lori handles claims before the Equal Employment Opportunity Commission and Department of Labor, conducts workplace trainings and investigations, and regularly presents on employment law.
Group Practice (R)evolution is a podcast series offering insights from owners, employees, and experts, and resources to support this wildly ambitious vision for the future. Become a part of the (R)evolution in our Authentic Leaders Group.
Next Authentic Leaders Group cohort starts May 1, 2026.
This is a journey of self-discovery and leadership mastery, where you'll not only enhance your leadership skills but also forge meaningful connections with fellow therapists who are committed to their own growth and the betterment of the therapy field. Apply now!
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