Signing a travel nursing contract can feel both exciting and overwhelming. While the promise of a new adventure in a different location can be thrilling, the fine print in your contract can make or break your experience. Trust me, not all contracts are created equal, and missing out on important details can leave you frustrated and/or financially strapped.
As someone who’s signed their fair share of contracts, I’ve learned that knowing what to look for can save you from major headaches down the road. Some contracts are more lengthy, and some include only the need-to-know components – and not necessarily all of them. So, here’s a breakdown of the key things to watch out for when reviewing your travel nursing contract to help you avoid common pitfalls and ensure you’re getting the best deal possible.
- Pay Rate Breakdown
Don’t just look at the weekly or hourly pay number—dig into the details. Travel nurse pay often consists of various components like:
- Hourly rate
- Overtime rate
- Shift differentials
- Stipends (for housing, meals, and incidentals)
- Bonuses (sign-on, completion, or referral)
Make sure the contract clearly states how your total pay is calculated. Sometimes recruiters will highlight the attractive weekly gross pay, but that number may not reflect the actual taxable income, leaving you with less than expected.
- Guaranteed Hours
One of the most important things to look for is a guarantee on your hours. You might be offered a 36- or 40-hour workweek, but what happens if your shifts get canceled? If your contract doesn’t guarantee a certain number of paid hours per week, you could be left without pay when the facility cuts back your hours due to low census. Look for a “Guaranteed Hours” clause to protect your income, or negotiate one if it’s missing.
- Overtime and On-Call Pay
Overtime can be a huge bonus if you’re planning to work more than your scheduled hours. However, the rate for overtime pay can vary, and it’s essential to confirm what that rate is upfront. The typical overtime rate is 1.5 times your base hourly rate, but sometimes contracts offer more or less. Similarly, if the position requires you to be on call, make sure the on-call pay is clearly outlined. Don’t just assume it’s part of the job without compensation.
- Housing Stipend and Options
Housing is one of the trickiest aspects of travel nursing. You’ll typically be offered two options:
- Company-provided housing
- Housing stipend
Both have their pros and cons. Company housing is convenient, but you often don’t have control over where you stay, and it may not suit your preferences. To be honest, while I know it exists, I have never had a contract that gave me the choice. Most of my contracts have included the housing stipend, leaving me to find housing on my own. The only contracts I have had with hospital-provided housing have been in remote locations where finding your own housing is not an option. If your contract includes the housing stipend, make sure the amount is realistic for the cost of living in the area where you’re working. Also, make sure you know the expectations if your contract gets canceled early. Will you have to cover any housing costs?
- Tax-Free Stipends
Speaking of stipends, it’s crucial to understand how your tax-free stipends are structured. The IRS requires that you maintain a tax home (your permanent residence) to qualify for tax-free stipends. If you’re a full-time traveler without a tax home, you could be on the hook for back taxes. Check with a tax professional to make sure you’re staying compliant.
- Cancellation Clauses
Contract cancellations can go both ways. Hospitals can cancel assignments due to low census, budget changes, or other reasons. However, if your contract doesn’t address what happens in the event of a cancellation, you could be left scrambling for a new assignment—and without pay. Look for a Cancellation Clause that protects you by providing at least a 2-week notice or offering compensation if your contract is cut short.
- Licensing and Credentialing
Most travel nursing agencies will handle your licensing and credentialing, but it’s always smart to ensure the contract covers this process. Look for details on:
- Who pays for licensure in non-compact states?
- Will you be reimbursed for certifications like BLS or ACLS if they’re required for the assignment?
- What happens if credentialing is delayed, causing you to miss the start of your assignment?
Licensing and credentialing has generally not been written into my contract, but I have been fortunate to work with consistent recruiters who I know and trust. However, having answers to these questions clearly spelled out in your contract will avoid any confusion later on. Whether it’s in your contract or not, be sure that you know your agency’s policies with regard to licensing and credentialing.
- Assignment Location and Floating
While you may be contracted to work in a specific department, there’s often a clause allowing the facility to float you to other units. If you’re comfortable floating, this may not be an issue, but it’s essential to know in advance how often and where you might be floated. Some nurses are okay floating within their specialty, while others prefer to avoid it altogether.
- Completion and Sign-On Bonuses
Bonuses are a nice perk, but always read the fine print. For completion bonuses, find out how long you need to stay on assignment to qualify and whether you can still receive it if the hospital cancels the contract. For sign-on bonuses, understand the repayment terms if you don’t complete the assignment. Some agencies will require you to return the bonus if you leave early, even if the reasons are out of your control.
Final Thoughts
Travel nursing contracts can be long and full of legal jargon, but taking the time to read and understand each detail can save you from unexpected frustrations. If anything in the contract is unclear or doesn’t feel right, ask your recruiter for clarification or negotiate terms that better suit your needs. You likely won’t be able to get exactly what you want in every contract; prioritize the things that are most important to you, and negotiate. Remember, your contract is the key to ensuring your next assignment is a smooth and successful one.
What have you learned from reading travel nursing contracts? Share your experiences in the comments!