Compare two healthcare contracts before you sign

1. Get the written pay breakdown

For each offer, record the taxable hourly rate, scheduled hours, guaranteed hours, overtime rate, weekly allowances and any bonuses. Include the assignment dates and exact worksite. Keep a copy of the offer and the date it was provided.

A quoted weekly amount may depend on working every scheduled shift. Ask how the employer calculates pay when the facility cancels a shift, you miss a day, or the assignment ends early. Record those conditions alongside the amount.

If the recruiter gives you a blended hourly rate, ask for its individual components before entering it in your budget. Our blended-pay guide explains how to separate them.

2. Compare the costs on the same basis

These are hypothetical offers for 36 paid hours per week over 13 weeks. The example assumes every scheduled hour is worked and every listed allowance is paid. No overtime, bonus or tax savings are assumed.

Offer B advertises $250 more each week, but its housing and travel costs are also $250 higher. Both leave $1,800 before taxes, home expenses, meals, local transport and other deductions. Their after-tax results may differ because the wage and allowance amounts differ.

The allowances in this example are not presumed tax-free. IRS travel rules consider your tax home, whether you are away from it for work, assignment duration and reimbursement arrangements. An employer calling a payment a stipend does not establish its tax treatment. Our travel-stipend guide explains these conditions.

Compare your own offers in the calculator. Enter your actual housing costs, travel budget and tax assumptions. Include ongoing expenses at home if you will still pay them during the assignment.

3. Add the costs that are easy to miss

• Housing: rent, utilities, parking, cleaning fees and any nonrefundable booking charge. Track a refundable deposit separately as cash needed before starting.
• Travel: round-trip mileage or airfare, baggage, tolls, parking and local commuting. Distinguish your out-of-pocket spending from any confirmed employer reimbursement.
• Credentials: licensing, fingerprints, required courses and renewal costs. Include only costs you expect to pay for this move.
• Benefits and time off: employee insurance premiums, coverage start and end dates, paid leave and any unpaid weeks between assignments.

Use the full assignment length when spreading one-time costs across weeks. Also check a shorter scenario if the contract permits early cancellation: the same travel bill divided across fewer paid weeks raises your weekly cost.

4. Check the terms before accepting

Request written answers to these questions:

1. Which hours are guaranteed, and what exceptions allow the employer to reduce them?
2. When is the first payday, and is orientation paid at the same rate?
3. When does overtime begin, what rate applies, and how are shift differentials and bonuses handled?
4. How do missed or cancelled shifts change wages and allowances?
5. Who pays for travel home or housing cancellation if the assignment ends early?
6. Are there repayment terms for bonuses, credential costs or reimbursements?

Federal overtime generally uses the regular rate for covered nonexempt employees, which can include more than the base hourly wage. Qualifying healthcare employers may use an agreed 8-and-80 system; state rules and exemption status can also affect the calculation. Ask for the method that applies to your position rather than assuming every offer uses the same threshold.

Save the answers in the offer checklist. Then compare employer-stated contract listings, keeping local contracts and travel assignments separate.

Sources and review