The Most Important Travel Nurse Terms to Know

Travel nursing can feel overwhelming and confusing to start with.  Then when you throw in the extra travel nurse “jargon”, it begins to feel like whoever you’re talking about travel nursing with is speaking an entirely different language!  In the travel nursing world there are so many terms that used daily, that you more than likely have never heard of before.  Terms that especially come up when you’re talking with a recruiter or negotiating your contract.

Below you’ll find a list of the most common terms and phrases, what they mean, and why they are important.  Make sure to know and study this list the next time you’re speaking with a recruiter or you’re in contract negotiations!

 

IF YOU’RE LOOKING FOR A TRAVEL NURSE RECRUITER, FILL OUT THIS FORM AND MY FAVORITE RECRUITER, JESS, WILL REACH OUT TO YOU!

 

“At Will” Employee

You might notice the term, “at will employee”, in your travel nurse contract and that simply means that you can be fired or quit at any time without repercussions.  Hospitals and travel nurse companies like to use “at will” employee’s because if there is no longer a need for a travel nurse on the unit, your contract might be canceled.  (However, this is rare so try not to worry too much about it).

While you, as the employee, can also quit at any time, I would advise against it unless you have a legitimate reason.  Quitting for no apparent reason could blacklist you from working at that hospital again, and it could also blacklist you from the travel nurse company you’re working with.

 

For more on contract cancellation, don’t miss…

• What to Do if Your Travel Nurse Contract Gets Canceled

 

Bill Rate

The bill rate is what the hospital is paying each travel nurse.  This rate changes based on different circumstances, and as the travel nurse you will not be privy to this information.  This rate goes directly to the travel nurse company and your recruiter will take a chunk of it (also known as the company margin) and give you the rest in the form of a pay package.

While you can ask your recruiter what the bill rate is, most recruiters won’t usually give out this information.

 

Company Margin

The company margin is what the company/recruiter is taking from the bill rate that the hospital is paying the travel nurse.  This might seem strange but when you think about it, that company and recruiter also needs to be paid and this is how they get paid and turn a profit.  You run into trouble when you’re working with an untrustworthy recruiter who takes a larger portion of the bill rate than what is deemed to be “average” (average is around 20-25%).

The reality is is that you might not ever know what the bill rate is or what margin the company/recruiter is taking from that bill rate.  In this industry, the most important thing is to be working with a trustworthy recruiter that has your best interest at heart and isn’t there to screw you over.  If you want to connect with a trustworthy recruiter, fill out this form and Jess will contact you.

 

Gross Pay & Net Pay

Your gross pay is the total amount of money you make before any taxes or deductions are taken out.  Generally, your recruiter will tell you what your weekly pay is in terms of GROSS pay.  I always like to ask, what is the TAKE HOME pay after taxes?

Your net pay is the money you have left after taxes and deductions are taken out.

 

 

Guaranteed Hours

Guaranteed hours is something that you will see in your contract, and if you don’t, it’s really important to ask your recruiter about.  Every hospital has different rules for calling off travelers on slow days.  Some hospitals do not call off travelers so even if it’s a slow day you either show up to work, or you’ll be cancelled but because you have guaranteed hours, you’ll still get paid.  Some hospitals have it to where they can call off travelers three (or more) times in one contract meaning that there are three (or more) opportunities for you not to get paid during your assignment if your unit is slow.  And some hospitals don’t do any guaranteed hours meaning you can be called off as often as they want to call you off and you will not receive pay.  I do not recommend working at a hospital that does this.

When you ask your recruiter about guaranteed hours, you should also clarify whether or not you will be receiving your stipend for that day/week.  Some companies ensure that you will, meaning the only pay you won’t receive will be your hourly rate.  Some companies take away 1/3 of your stipend (meaning you won’t get your hourly rate or 1/3 of your meal and housing stipend).  And some companies will take away your stipend for the entire week if you get called off for only one day.  I personally would not work with a company that takes away your stipends for the entire week if you’re called off for one day.  (Read this post to see more red flags in travel nursing).

 

Stipend

You’ll notice the word “stipend” a lot in your contract, and while this is self-explanatory, it’s important to know that there are many different stipends you’ll be dealing with.  The stipends to look out for include…

• Hourly stipend – This is what you will be paid hourly when you’re working (this amount is usually low because it is taxed)
• Meal stipend – This is part of your pay package and is not taxed (you don’t need to prove that you’re using this money for meals)
• Housing stipend – This is part of your pay package and is not taxed (you don’t need to prove that you’re using this money for housing)
• Travel stipend – This is what you’ll be reimbursed for for traveling to your assignment (know that there is usually a limit on your travel stipend and you may not be reimbursed the full amount it took you to get to your assignment; or you may be reimbursed for more than it took you to get to your assignment)

 

For more on stipends, don’t miss…

• Your Guide to Travel Nurse Pay

 

Taxable & Non-Taxable Income

The way that travel nurses are abled to be paid so much is because their pay is divided into taxable and non-taxable income.  The income that you are taxed on is your hourly rate (which is why this number can be low); the income that you are not taxed on is your meal and housing stipend.  But keep in mind, the only way you’re eligible to receive tax-free income is if you are following tax laws and living away from your permanent home and duplicating your expenses.

 

Permanent Residence

Your permanent residence is where you permanently live when you’re not on assignment.  For example, my home-base or “permanent residence” is in Nebraska so to receive my tax-free stipends, I had to pay rent and taxes in Nebraska even if I was not living there due to me being on assignment in another state.

 

Exclusivity

This isn’t a term that you will see in your contract, but you might hear the term thrown around by another travel nurse or your recruiter.  Exclusivity is when one travel nurse company has exclusive rights to a hospital.  This means that when a hospital needs to recruit travel nurses, the hospital first opens up their needs to ONE travel nurse company (the one that they have “exclusivity” with).  If this company is unable to fill those needs in a certain timeframe, then the hospital starts to open its needs to other companies.

This does not mean that you are only guaranteed to work at a specific hospital if you’re with the company that has “exclusive” rights with that hospital.  But it does mean that maybe you don’t have as high of a chance.  It’s also important to know that the company that has exclusive rights with the hospital should be able to pay travel nurses more than the other companies because the other companies have to take a portion of the bill rate and give it to the company with exclusivity.

 

Compact License & Non-Compact License

A compact nursing license is a license that can be used in more than one state.  This means that you do not have to apply for a nurse license in every single state that you work in.  However, not every state is eligible meaning not every state accepts a compact nursing license.  In that case, even with a compact license, you will have to apply for that specific state license as well.

Here is where things can get confusing.  Not EVERY NURSE qualifies to apply for a COMPACT nursing license.  In order to qualify, you must have permanent residence in a state that is part of the NLC (or is part of the nurse compact agreement).  For example, if you live in Nebraska (which is a compact state) you can work in any state that is also apart of the compact agreement without applying for an additional license.  If you live in California (which is not a compact state), you have to apply for a nursing license in every single state EVEN IF you get a license in Nebraska (a compact state).  This is because your permanent residence is in California and not in Nebraska.  If you have permanent residence in Nebraska and have a Nebraska nursing license, you have to apply for a California nursing license because California is not apart of the NLC.

 

For more information on state licenses, don’t miss…

• Compact vs Non-Compact Nursing License – What You Need to Know

 

Travel Nurse Essentials

 

If you’re considering becoming a travel nurse, I hope that these terms helped you out!  If you have any questions about travel nursing or need more clarification, don’t hesitate to leave a comment below.

 

For more information on travel nursing, don’t miss…

• Your A-Z Guide to Travel Nursing

 

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