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Agency Advice Ask The Expert Career News

Should you take a 36-hour contract or a 48-hour contract?

admin@staffdna.comNovember 1, 20220 Views0

The holidays are approaching—a time when you’re looking for more flexibility, especially if you don’t have PTO scheduled. Burnout is real, so you’re probably steering clear from working 48-60 hours a week, which has been more common over the past couple of years.

These are key reasons to lean toward 36-hour shifts.

But another consideration might be the financial side of things.

When it comes to how you’re paid, there’s a difference between working overtime on a 36-hour contract vs. a 48-hour contract.

Simply put, you have a higher potential for overtime (payable after you hit the 40-hour mark) on a 36-hour contract.

Here’s how it breaks down:

Most hospitals don’t allow agencies to bill an overtime rate on a 48-hour contract until more than 48 hours have been worked in a week.

However, agencies still pay those on contract for overtime after 40 hours, whether it’s a 36-hour contract or a 48-hour contract.

Essentially, there’s more flexibility for agencies like LiquidAgents Healthcare to increase the overtime rate on a 36-hour contract because they can bill the facilities for the overtime rate starting after the 40-hour mark, versus a 48-hour contract where most hospitals only accept billing at the regular rate after the 48-hour mark (when billing at the overtime rate begins).

Keep in mind: On a 36-hour contract, agencies usually have flexibility to increase the overtime rate after 40 hours. However, on a 48-hour contract, overtime is a standard 1.5x the regular hourly rate, with no flexibility.

Here’s an example:

36-hour contract

  • Your regular taxable rate is $40/hr.
  • Your OT rate is $100
  • Your stipends are $1350
  • You pick up an extra shift and work 48 hours that week:
    • $40/hr times 40 hours = $1600
    • $100/hr times 8 hours = $800
    • Plus stipends = $1350
    • Total = $3,750 gross weekly

48-hour contract

  • Your regular taxable rate is $40/hr.
  • Your OT rate is $60
  • Your stipends are $1350
  • You work your regularly scheduled shifts:
    • $40/hr times 40 hours = $1600
    • $60/hr times 8 hours = $480
    • Plus stipends = $1350
    • Total = $3,430 gross weekly

Hope this helps, and happy traveling!

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