It's not a legally binding contract? Bill Rates Dropping Fast!

[Travel_RN_0714, MSN, RN]

I signed an extension that was to begin mid-April at a hospital that's quite nice to work at. In my current "contract", I'm making a pretty good Covid pay rate and extended at a lower pay rate as we all knew that these high pay rates weren't going to last. 

I signed my extension 2 weeks ago and just 2 days ago, my recruiter messaged me that the hospital system has re-evaluated their needs and rates and is dropping the bill rate across the board, Nation Wide. He went on to tell me that it's not just this hospital system that's doing it, it's happening all across the Nation. Rates are dropping and going back to the pre-Covid bill rates. 

He sent me a revised "contract" to sign with the new, even lower pay rates. He said I can either accept the new lower rate, or I can decline, and he would find me an assignment somewhere else. The new bill rate will not impact the current contract that I'm in, however the hospital system is not accepting any extensions that haven't started without re-negotiating to the newest lower bill rate he sent to me 2 days ago. 

Here's the thing he explained to me during a lengthy phone conversation yesterday, that I didn't realize. As travelers, we aren't signing a legally binding contact. We are signing a "travel assignment" and we are workers "at will".  If a hospital system finds that they need to reduce staffing, or adjust their bill rates, they can do so and the travel agencies really have no recourse. The hospital systems dictate the bill rate to the travel agencies and that's that.  The agencies can't do anything about it as they aren't going to tell their huge money making hospital system clients no, because there are a dozen travel agencies ready to take that hospital system's business. When I asked him why none of this is in the agreements that I sign, he told me that the travel agencies sign the "Master Agreement" with the hospital system and that is between them. My agency then sends me an agreement that is between them and myself. My recruiter went on to tell me that it stinks that the hospital system agreed to an extension at a set rate and then wants to back out of it, but that they can do it. I can't sue them or do anything about it. All I can do is say no and he'll find me an assignment elsewhere. 

I went back and looked at the various "contracts" that I've signed the past years, and yes, none of them really say the word "contract" in them. They all speak of the "assignment" and yadda yadda. It's all an illusion and very vague.

Soo... is this happening to anyone else, and what are your thoughts about signing a "contract" and then having the hospital system back out of it?  

[NedRN]

Therein lies a huge issue in the system. Yes, it is a contract: look at the title - an "agreement" is a contract and the document wording makes it clear that is a contract between the signatory parties.  However most agencies include "at-will" language that effectively degrade most of the protections that a contract should provide both parties, and only protect the agency.

That said, your contract is the only factor that matters should you file a civil case against your agency. The agency to hospital contract is irrelevant no matter what your recruiter says. And no matter what a recruiter tells you, your contract may be enforceable in court. Besides the weakening at-will language in the contract, it is a huge hassle to sue, so much so that it is rare for a traveler to follow through (less rare for agencies suing travelers). I have won such a case (actually a super rare edge case where I sued the hospital) and even more surprising, collected damages (winning is just the first step) but no, it wasn't worth it. There are probably many cases of travelers successfully defending their contract in court (I have heard first hand of a couple), but of course no central database.

In this specific case, and in general globally, taking the path of the least resistance is usually best for the traveler. Cut your losses and move on. Shame the agency by naming them here. Generally most legal actions are about emotions more than money (was in my case). You need to get over that and vent your emotions in a venue that doesn't cost you your time and treasure. One is vote with your feet, and another is inform other travelers.

[Travel_RN_0714, MSN, RN]

Well Ned, thanks for the free legal advice.

However, I happen to like my recruiter and the hospital that I'm at. I'm not going to shame him or the travel agency I'm currently with. I feel he was being honest with me and it's not him or the travel agency, it's the huge multi-state hospital system that lowered the bill rate and I can understand the hospital system's dilemma as well as my travel agencies point of view. With Covid cases dropping, they simply don't need travel staff and aren't going to pay the sky high Covid rates. I'm just happy that they didn't cancel my assignment/agreement/contract or whatever it's labeled. I'm not going to switch hospitals over something like this as it's hit or miss that I'll find a place that I enjoy going to. I've been to some hospitals that are very nasty to their travel staff. 

Leaving my staffing agency over something like this isn't an option either, as we all know the onboarding process when changing agencies is a pain. Uploading all of your documentation, retaking the dreaded Prophecy exams, etc. 

My post here was actually to inform other travelers of what has happened to me and ask if anyone else was having this happen to them. But again, thanks for your advice. 

[NurseJackie101]

I have to agree with you a lot of recruiter would never be this open and honest about such a crappy situation. Seems like your recruiter was frustrated with you and wanted to be completely transparent. I think Ned needs to have several seats. Why would you shame someone who is open and honest. I would actually love to work with your agency and recruiter. 

[Silver_Rik, ASN, RN]

Not a lawyer, but my brother and my dad went to law school and I know that the basic elements of a contract are offer, acceptance, and consideration and just because they say it’s not a legally binding contract doesn’t mean a court will agree with them. 
 

Also I read recently that several law firms are aware of this trend to cut contracts and rates and are looking for plaintiffs who want to be represented in lawsuits against agencies and hospitals for breach of contract 

[NedRN]

Probably looking for enough plaintiffs for a class action lawsuit. One traveler contract cannot justify a lawyer working on contingency.

[Silver_Rik, ASN, RN]

1 hour ago, NedRN said:

Probably looking for enough plaintiffs for a class action lawsuit. One traveler contract cannot justify a lawyer working on contingency.

True