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Navigating Travel Nurse Contracts: What to Look For

7 min read · Published July 1, 2025

Travel nursing contracts look simple on the surface — a flat weekly rate and an assignment start date. In practice they contain several moving parts that can dramatically change your take-home pay, tax liability, and exposure if an assignment gets cancelled. Here's what to evaluate before signing.

Understand the pay package breakdown

Your total compensation is split into two buckets: taxable base pay and non-taxable stipends (housing, meals, and incidentals). The split matters enormously for your tax bill. A legally compliant pay package must pay you at least your home state's minimum wage as taxable income — everything above that can be structured as tax-free stipends, provided you maintain a "tax home" (a permanent address in another state where you pay living expenses).

  • Taxable hourly rate: typically $20–$35/hr depending on specialty and market
  • Housing stipend: $1,200–$2,500/month, tax-free if you qualify
  • Meals & incidentals: $250–$450/month, tax-free if you qualify
  • Total gross weekly: compare this number across agencies, not hourly rate alone
Red flag: An agency advertising an unusually low taxable base (under $15/hr) paired with a very high stipend is structuring pay aggressively. If the IRS audits and finds you don't legitimately maintain a tax home, you could owe back taxes on all that stipend income.

Assignment length and extension clauses

Standard assignments run 13 weeks. Read whether the contract auto-extends or requires a new negotiation. Some contracts lock you into a rate for extensions — others let you renegotiate. In a hot market, renegotiation rights are worth fighting for.

Cancellation clauses — the most important clause in the contract

Hospitals can and do cancel travel assignments, sometimes with very little notice. What does the contract say about this?

  • Guaranteed hours: does the facility guarantee a minimum weekly hour count, or can they cut your schedule without penalty?
  • Cancellation notice: how many days notice must the facility give before cancelling the assignment?
  • Early termination by the nurse: what are your penalties if you leave early? Some contracts require repayment of housing stipends or relocation fees.
  • Force majeure: does the contract exclude pandemic-style cancellations from the guarantee? COVID exposed this gap widely.

Housing: agency-provided vs. stipend

Agency-provided housing is convenient but gives you less control. If the housing is poor quality or located far from the facility, your options are limited. Stipend housing lets you choose your own accommodation, but you bear the search cost and risk of short-term rental markets in high-demand cities.

If taking a stipend, confirm the stipend amount against actual Airbnb and furnished-apartment costs in that city before signing. A $1,400/month housing stipend in San Francisco does not cover a furnished room.

Completion and referral bonuses

Many contracts offer a bonus for completing the full assignment. Read the conditions carefully — some completion bonuses are forfeited if you call out sick beyond a certain threshold, if the assignment is extended and you don't extend with it, or if the contract is mutually terminated early.

Before you sign: questions to ask every agency

  • What is my guaranteed weekly minimum hours?
  • What happens if the facility cancels with less than 2 weeks notice?
  • Is my housing stipend included in the contract or separate from it?
  • Are there any float requirements to units outside my specialty?
  • Who do I contact if the facility isn't holding up their end?

Travel nursing is one of the highest-earning paths in clinical nursing, but the contracts are designed to protect the agency and the facility first. Reading every line isn't optional — it's the job.

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