Overtime Pay, who really benefits?

[NurseRies]

Hey Travelers,

I am getting about 10-15 hours of overtime a week so far on my new assignment. I am in week 4. My hourly rate is fairly low because I'm getting all that glamorous tax-free money. I know that hospitals are probably paying about $60/hr for me (rough estimate), so when I work overtime, they're paying $90/h-- to my agencyr. I am only seeing about a third of that amount reflected in my hourly. I am also on call 2 out of my 4 days a week, for every hour worked, I get time and a half as well. I am now wondering... The agency is truly making a killing off my stupidity. How true are my concerns?

Thanks for anyone who can clarify.

[NurseRies, BSN, RN]

I'd like to send you a PM but your mailbox is full!

Yeah just cleared the inbox!

[NedRN]

Sent.

[jnh911]

Thank You for the feedback. If I end up going to JFK, I'll make contact so we can meet face to face.

[NurseRies, BSN, RN]

Thank You for the feedback. If I end up going to JFK I'll make contact so we can meet face to face.[/quote']

Great! I'll be there through July 7.

[josbarRN]

I have also had an issue with OT pay as a travel nurse. One hospital explained that they could not afford to allow me to pick up OT shifts even though my OT rate was only $30/hr. Once I considered that the agency bills the hospital 1.5 times the bill rate and the standard bill rate is $70/hr, the hospital would then get billed $105/hr and the nurse gets $30 per hr. So, twelve hours of OT would cost the hospital $1260 and I get $360 and the agency gets $900 even though my recruiter was sitting at home watching TV. No, 1.5 of the bill rate is not acceptable as an OT rate.

[Argo]

I don't work overtime or take call as a traveller. If I did I would negotiate a higher rate because the general rates suck, big time....

[josbarRN]

I have read travel nurse forums that recommend setting your overtime pay as $10/hour above the bill rate. Not the hourly pay but the actual *bill rate*. Even so, I have spoken to recruiters who maintain that the OT rate is fixed as 1.5 of the hourly pay and cannot budge from that. I assure them that they can indeed budge from that or there is no incentive for me to work any overtime hours or pick up extra shifts. I am still learning to negotiate.

[8-ball, BSN]

If a recruiter says they can't find one that can. Some agencies try to trick you and offer a OT bonus. This can be good and bad but you need to figure it out. One agency told me they pay x1.5 but they then offer $100 for each extra shift worked in a week. If your rate is $20 and you work 12 extra hours then you get 12 x $30=$360+$100=$460 but that $100 is then taxed at a higher rate because its considered a bonus not hours worked. however if you negotiated for 2x OT which is my minimum mostly I do 3x OT then you get 12 x $40= $480 and less tax or 12 x $60= $720. main point is stay away from the wording bonus because uncle Sam likes to take more of that.

last year I negotiated for a 3x OT rate on a 48 hr contract the base rate was low 30s and this was winter so rates were higher too. Im sure the company still made bank though.

[jive turkey]

I would also say do the math and calculate how much you will TAKE HOME with the overtime pay. Your overtime rate may get fully taxed. Here's a cheesy example if you get paid housing rather than take provided housing:

10/hr base pay (taxable)

20/hr stipend (non taxable)

Lets assume a tax rate of 25pct.

you take home 27.5/hr

Overtime rate is 45/hr. You will get taxed on the whole 45. Depending on what your tax rate is, your exemptions etc you may not bank as much as you thought. Let's say you get taxed 25 pct....you're taking home 33.75/hr. Do you make more? Yes. Are you making time and a half? Not really.

I'm not saying it'll be this way across the board. It depends on your pay structure, rate, tax rate etc. But my main point is do the math before taking that overtime and make sure it's worthwhile to you, regardless of what the agency makes.

[Wolf at the Door, BSN]

If a recruiter says they can't find one that can. Some agencies try to trick you and offer a OT bonus. This can be good and bad but you need to figure it out. One agency told me they pay x1.5 but they then offer $100 for each extra shift worked in a week. If your rate is $20 and you work 12 extra hours then you get 12 x $30=$360+$100=$460 but that $100 is then taxed at a higher rate because its considered a bonus not hours worked.

you're referring to AMN

[8-ball, BSN]

Yes but I hear others that do that as well