What Should Nurses Look for in an Employment Contract Before Signing?

What is the Purpose of an Employment Contract?

An employment contract is a legal agreement between you and a prospective employer. It should outline specific details, including job title, duties, compensation, benefits, working hours, and other specific terms or conditions relevant to the role or employer. An employment contract safeguards your rights as an employee and may include provisions related to holidays, sick leave, termination procedures, confidentiality agreements, and more. A thorough understanding of these details will empower you to assert your rights and protect your interests throughout your employment with this facility.

When do Nurses Need a Contract?

Nurses may be requested to sign a contract for many reasons. A contract may cover a specific period or event. Nurses may contract as individuals with another individual or entity that a for-profit or non-profit healthcare system, hospital, or private practice owns. Temporary or per diem, traveling, and dialysis nurses frequently utilize contracts. Faculty contracts may also be signed with schools to delineate the roles, responsibilities, and expectations of the nurses.

What are Examples of Standard Contract Clauses?

While contracts will vary based on the employer and role of the employee, the following clauses frequently appear:

• Preamble: The preamble of a contract starts by identifying all parties involved. Only the mentioned parties are required to sign the contract and addendums. After the contract is signed, all parties must agree to any changes. 
• Recitals: Recitals explain the reason for the contract between the parties and provide important context to the operating terms.
• Duration: The duration clause provides the starting and ending time and date of the contract.
• Scope of work: The scope of work defines the service or other activity that the employee offers. The employee will use the scope of work to evaluate whether the service provided is adequate.
• Compensation: Most contracts include payment details and should discuss all aspects of compensation or a detailed explanation.
• Liability insurance coverage: This clause specifies who provides liability coverage, which may be the employing entity or the nurse through an individual policy.
• Intellectual property: This clause requires the nurse to acknowledge that the employer owns all ideas, services, or products created during employment.
• Contract renewal: This clause informs the nurse about the timeframe and guidelines for notifying the employer that the contract will not be renewed.
• Severability: A severability clause states that if any agreement provision becomes unenforceable under current or future laws, the rest of the contract will continue to bind the parties.

What Should be Done Prior to Signing a Contract?

Especially as a new grad, there are important aspects of contracts to consider. A good piece of advice is to ask travel nurses or other nurses who do not work in upper management their opinion of working in the unit. These individuals should provide a more realistic and unbiased perspective of what employment at this facility entails.

Understanding the area and demographics is also helpful before signing a contract. Certain areas may be more prone to specific pathology or disease states, and some areas may not be welcoming to nurses of particular ethnicities or backgrounds. Familiarizing yourself with these issues ahead of time will allow you to understand more about your working environment.

Additionally, and perhaps most important, you should thoroughly read the contract and make a copy for personal safekeeping. You should be familiar with the termination process in case you decide the job is not a fit for you.

What Should be Reviewed in a Nursing Contract?

The landscape of nursing is diverse. Travel nursing contracts may appear quite differently from staff contract positions. However, regardless of the role, the following aspects should be heavily considered before signing.

• Unit details: The contract must include specific details relating to the unit where you are expected to work, such as:

– Individual unit(s)

– Shift- day, night, evening, rotating

– Hours

– Mandatory overtime

– Rotation to charge nurse responsibilities

– Call requirements

– Holiday requirements

– Weekend rotation

– Float requirements, including possible units expected

– Float requirements to other hospitals

– Guaranteed hours

– Benefits

• Incentive bonuses: Some companies offer bonuses or other incentives for completing a full travel nursing assignment or signing a contract extension.
• Financial breakdown: A financial breakdown is especially needed for travel nursing to determine the hourly rate, the per diem rate, the housing rate, and the full weekly pay. If you are unsure whether or not you are getting fair compensation, the United States Bureau of Labor Statistics has posted rates by experience for each state.
• Vacation time: Requested time off should be included in the contract if known in advance.
• Mandatory vaccines and health requirements: A healthcare facility may list certain requirements that are mandatory for employment, such as a flu shot, COVID-19 vaccine, and TB testing.

How to Review a Contract?

A proper contract review should follow the listed steps below with the assistance of an attorney at Lankford Law Firm:

• Pre-negotiation

– Learn about the company.

– Speak with others who have worked with the company to learn about the environment.

• Post-negotiation

– Thoroughly read the contract.

– Identify the benefits and negatives of accepting the contract.

– Negotiate the terms you believe are restrictive or that may prevent successful employment.

• Pre-acceptance

– Consider the acceptability of the contract terms.

– Determine if the contract clearly states the negotiated terms and responsibilities of each party.

– Seek legal advice to review and verify all issues.

• Acceptance

– Both parties agree to the contract’s terms and sign it.

– Keep a copy of the signed agreement.

Do You Need an Attorney?

If you have questions about the legality, enforceability, or favorability of a contract, you deserve legal help you can depend on. Call the lawyers of Lankford Law Firm today at 850-888-8992 or complete a contact form to schedule a consultation.