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10 Travel Nurse Contract Red Flags (And What to Do About Them)

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This article was created with AI assistance.
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Updated 2026  |  More nurse finance guides →

Most travel nurses sign 4-8 contracts per year. A bad contract can cost you thousands of dollars, damage your license, or leave you stuck at a facility that's unsafe to work in. Here's what to look for before you sign.

Red Flag #1: Guaranteed Hours Below 36/Week

Most travel contracts are for 36 hours per week. If your contract guarantees fewer hours — or has no hour guarantee at all — you're exposed to being sent home early without pay. Some facilities will guarantee hours but reserve the right to reassign you to another unit on short notice.

What to do: Get the guaranteed hours in writing. If they won't commit to 36 guaranteed hours per week, factor that risk into your hourly rate.

Red Flag #2: "All Floating" Language

Contracts that say you may be required to float to any unit at the facility are license risks if you're floated to a specialty you're not trained in. Most state BONs hold nurses to the same standard of care regardless of whether they objected to a float assignment.

What to do: Get a written list of the units you can be expected to float to, and refuse any assignment you're not competent to handle safely.

Red Flag #3: Vague Cancellation Policy

Contracts without a specific cancellation clause can be cancelled by the facility with minimal notice and no compensation. "Assignment may be cancelled if census drops" with no further detail is a problem.

What to do: Ask specifically: If the contract is cancelled early, what compensation do you receive? Negotiate for at least 2-4 weeks of pay on early termination.

Red Flag #4: Non-Compete Clauses

Some contracts include non-compete or non-solicitation clauses that prevent you from being hired directly by the facility after your contract ends. These are increasingly common and can block you from converting to permanent or per diem positions.

What to do: Read the non-compete language carefully. If you want the option to go permanent at that facility, negotiate this clause out before signing.

Red Flag #5: License Costs Not Covered

Compact license states have made this easier, but if you're working in a non-compact state, you need an additional state license. Some agencies won't cover the cost ($100-400 per state). In a multi-state contract sequence, these costs add up.

What to do: Ask upfront who pays for state licenses. Reputable agencies cover these costs.

Red Flag #6: Above-GSA Stipends Without Explanation

If your housing or meals stipend is significantly above the GSA per diem rate for your assignment location, find out why before accepting. Above-GSA stipends may be taxable, and some agencies use inflated stipends to mask a lower taxable wage (which affects your Social Security contribution and loan qualification).

What to do: Know the GSA rate for your location before your recruiter calls you with the "great package."

Red Flag #7: Overtime Isn't Defined

Some travel contracts define overtime at 48 hours instead of 40, meaning you only get overtime pay if you work more than 12 hours per day or more than 48 per week. In a state with strict overtime laws (California, for example), this can be an illegal clause — but agencies still try it.

What to do: Know your state's overtime law. California nurses should verify compliance aggressively.

Red Flag #8: Skills Testing Required Before Start Date

Skills testing on the first day of an assignment is normal. But some facilities are now requiring online testing, background checks, or competency assessments weeks before your contract starts — with no compensation. If these take more than a few hours, you should be paid.

What to do: Ask what pre-assignment requirements exist and how long they take. Anything over 2-3 hours of your time should be compensated.

Red Flag #9: No Direct Agency Support Contact

If your recruiter is unreachable after 5 PM and you have a crisis at the facility at 2 AM, you're on your own. Large agencies have 24/7 support lines. Smaller ones often don't.

What to do: Test your recruiter's responsiveness before accepting a contract. Call them at 7 PM with a question. Their response tells you everything.

Red Flag #10: "Traveler-Friendly" Claims Without Specifics

Any facility that advertises itself as "traveler-friendly" without explaining specifically why is just doing marketing. Traveler-friendly means: adequate orientation, competent charge nurses, manageable ratios, and a culture where travelers are treated like equal members of the team.

What to do: Ask for the unit's traveler attrition rate. Ask your recruiter if other travelers have been cancelled from this facility before. Ask in traveler Facebook groups about the specific hospital by name.

The Single Best Protection

Talk to nurses who've worked that facility before you sign. Travel nurse Facebook groups (Travel Nurse Network, ICU/CICU Nurses, your specialty groups) have real, candid reviews that no recruiter-sourced reference will ever match.

Calculating your next move?

Use the Travel Nurse Contract Calculator to compare assignments by take-home pay — stipends included.

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