Quick Answer
The biggest travel nurse contract red flags are vague "guaranteed hours" language, missing cancellation clauses, housing stipends below your actual costs, and non-compete provisions. Always get your complete pay package breakdown in writing before signing — including base rate, overtime, and all stipends.
Review your assignment contract clause by clause. Identify red flags, negotiate better terms, and protect your position.
Sections Reviewed
0/15
Red Flags Found
0
Review Progress
0% Complete
Overall Contract Rating
Not Rated Yet
1
Guaranteed Hours
Does your contract guarantee a minimum number of hours? Low-census periods can leave you working far fewer hours than expected. A strong contract locks in scheduled hours and explains what happens if the facility can't meet those commitments.
Counter-Offer Script:
"Can we add a clause guaranteeing [X] hours/week? If census is low, I'd like a pay guarantee for [X]% of those hours, or the right to pick up additional shifts with clear premium pay."
2
Cancellation Policy (Facility-Initiated)
What happens if the staffing agency or facility cancels your assignment before it starts? A fair policy requires significant notice and protects your income. Many contracts allow cancellations with minimal notice and no financial compensation—this is a major red flag.
Counter-Offer Script:
"I need at least [3-4] weeks' notice for cancellation, and compensation of [2 weeks] pay if the facility cancels. I'm relocating for this role and need to plan accordingly."
3
Housing Stipend
Housing is often the biggest expense in travel nursing. Make sure the stipend is truly separate from your base hourly rate, that you have flexibility to find your own housing, and that the amount is realistic for the cost of living in your assignment location.
Counter-Offer Script:
"I'd like to negotiate the housing stipend to $[X]/week, which reflects current market rates in [city]. I also want the option to find my own housing and receive the full stipend rather than using agency housing."
4
Travel Reimbursement
Travel costs (flights, mileage, hotels during travel) add up quickly. Clarify who pays, what expenses are covered, whether reimbursement is upfront or after-the-fact, and if there are caps or restrictions.
Counter-Offer Script:
"I need the agency to pre-pay my travel costs. If that's not possible, I need reimbursement within 2 weeks of submitting receipts, with a per-night hotel limit of at least $[X] and full mileage reimbursement."
5
Overtime Rate
Understand when overtime kicks in and at what rate. Some contracts pay OT after 8 hours, others after 12 hours or 40 hours per week. Also confirm whether premium shifts (nights, weekends) are separate from OT rates.
Counter-Offer Script:
"I want to clarify that OT is paid at 1.5x my base rate after [8] hours in a shift or [40] hours in a week, whichever is more favorable. This should include any shift differentials I'm earning."
6
Holiday Pay
Holiday pay varies widely. Some contracts exclude holidays, others offer premium pay (1.5x or 2x). Know which holidays are included, what the premium is, and whether you must work the holiday to receive pay.
Counter-Offer Script:
"I'd like the contract to specify which holidays are paid at premium rates and confirm the rate (1.5x or 2x). I should receive holiday pay regardless of whether I'm scheduled to work, and I want [X] paid holidays per year included."
7
Floating Policy
Can the facility float you to different units or other facilities? Some facilities float extensively, which can mean you're working outside your specialty. Establish boundaries upfront about where and how often you can be floated.
Counter-Offer Script:
"I'm comfortable floating within [unit/specialty], but I want to limit floating to no more than [1-2] times per month. Floating to other facilities or out-of-specialty areas requires additional compensation and my approval."
8
Call-Off Penalties
What are the consequences if you need to call off from a shift? Some contracts have steep financial penalties, loss of bonuses, or even termination clauses. Understand the policy and ensure it's reasonable.
Counter-Offer Script:
"I want the contract to allow [2-3] emergency call-offs without penalty. Penalties for additional call-offs should be reasonable—not loss of pay or termination—and medical call-offs should be treated as separate from voluntary call-offs."
9
Extension Terms
Does the contract automatically extend, or is extension optional? If extended, do rates change? Some facilities lock you into rates for extensions without giving you the option to renegotiate or decline.
Counter-Offer Script:
"Extensions must be optional, and I need at least [2-3] weeks' notice with the extension terms before I'm expected to commit. Extension rates should match or exceed my current rate, with any changes clearly negotiated."
10
Licensure & Compliance Costs
Who pays for travel-related licensing, drug screens, background checks, certifications, and compliance costs? Many agencies pass these expenses to nurses, which can total $500-$1,500 per assignment.
Counter-Offer Script:
"The agency must cover all costs for licensure, drug screens, background checks, and certifications required for the assignment. I should not have to pay out-of-pocket for any compliance-related expenses."
11
Insurance Coverage
When does your health/dental/vision insurance start? Some assignments have waiting periods, leaving you uninsured for weeks. Clarify what's covered and whether you're covered from day one or after a waiting period.
Counter-Offer Script:
"I need health, dental, and vision insurance to be effective from my first day of work. Please provide details on plan options, premiums, deductibles, and confirm that malpractice insurance is included."
12
Non-Compete Clause
Non-competes restrict where you can work after the assignment ends. Some are reasonable (no work with that facility for 6 months within 50 miles). Others are extreme (no healthcare work anywhere for 1-2 years). Always negotiate limits on non-competes.
Counter-Offer Script:
"I want to negotiate the non-compete. A reasonable non-compete would be [6 months], [25-50 mile radius], specific to [facility name] only. I should also be allowed to convert to a permanent staff position without violating the clause."
13
Rapid Response / Crisis Rates
Crisis contracts (for emergency staffing, short notice, high urgency) should offer premium pay to compensate for the rush. Ensure your rate is locked in and doesn't decrease if the crisis extends or is declared over mid-assignment.
Counter-Offer Script:
"For a crisis assignment with short notice, I expect a locked-in premium rate of $[X]/hour. This rate remains in effect for the full assignment length, regardless of whether the crisis is declared over or the assignment extends."
14
Do Not Return (DNR) Clause
A DNR clause allows the facility to bar you from returning or working with that agency. Understand what triggers a DNR, whether it's permanent, and if you have a chance to dispute it. An overly broad DNR can damage your reputation and future earning potential.
Counter-Offer Script:
"DNRs should only apply for serious violations like theft, violence, or patient harm—not minor policy disagreements. I want the right to dispute a DNR and a clear process for appeal. A DNR should be facility-specific and shouldn't blacklist me agency-wide."
15
Stipend Clawback Clause
Some contracts allow agencies to reclaim housing or travel stipends if you leave early or break the contract. This can mean returning thousands of dollars. Understand clawback terms and negotiate limits or exemptions for circumstances beyond your control.
Counter-Offer Script:
"I'll accept a prorated clawback if I break the contract, but not a full refund of stipends. There should be no clawback if the facility terminates me or if I leave due to medical emergency, safety concerns, or breach of contract by the facility."
Frequently Asked Questions
+What makes a travel nursing contract "good"?
A good contract has guaranteed minimum hours, clear cancellation policies with compensation, separate housing stipend, pre-paid travel costs, transparent overtime rates, reasonable non-competes, and fair terms around extensions and clawbacks. The contract should prioritize your financial security and protect you from last-minute changes.
+Can I negotiate a travel nursing contract?
Absolutely. Contracts are negotiable—don't accept the first offer. Use this checklist to identify red flags, then use the counter-offer scripts to propose specific changes. Be professional, provide justification, and be willing to compromise. Agencies want to fill positions, so they're often flexible on terms that don't break their budget.
+What should I do if I find a major red flag?
First, contact your recruiter and ask for specific changes to address the red flag. If they won't budge on critical terms (guaranteed hours, cancellation policy, housing stipend), consider walking away. There are other assignments. Your financial security and reputation are too important to risk on a bad contract.
+How much time should I spend reviewing a contract?
At least 1-2 hours. Contracts can be dense and full of legal language. Use this checklist to break it into manageable sections, take notes on anything unclear, and ask your recruiter to explain terms you don't understand. A quick review can cost you thousands of dollars in unexpected deductions or unfavorable terms.
+What if the agency says the contract terms are non-negotiable?
Many agencies will say this, but it's rarely true. Some terms (like base hourly rate) may be fixed, but others (like cancellation notice period, clawback terms, non-compete) are often flexible. If an agency refuses to negotiate on any major red flag, that's a sign they prioritize their interests over yours. Consider working with a different agency.
+Should I get legal review of my contract?
For critical assignments, it's worth having a lawyer review the contract, especially if you spot major red flags. Legal fees ($200-$500) are small compared to the financial risk if you sign a contract with unfavorable clawback clauses or non-competes. Some nursing organizations also offer contract review resources to members.
JM
Jayson Minagawa, BSN, RN
Registered Nurse · 12+ Years Clinical Experience
Background in ICU/critical care, psych & behavioral health, correctional nursing, telehealth, and multi-state travel nursing. Everything on The Nursing Directory comes from real bedside experience — no sponsored content, no paywalls, no ads.