If you’ve spent any time in travel therapy Facebook groups, you’ve probably seen the comments section explode the moment someone asks about missed shifts.
“My agency docked my stipend because I called out sick!” “That’s illegal! That’s wage recharacterization!” “They have to pay you stipends 7 days a week no matter what!”
It’s easy to get riled up—nobody likes seeing a smaller paycheck. But there is a lot of misinformation out there that conflates Contract Law (what your agency agreed to pay you) with Tax Law (what the IRS allows to be tax-free).
Let’s clear the air, debunk some myths, and help you understand exactly when you should—and shouldn’t—expect that stipend check.
The Golden Rule: “Ready, Willing, and Able”
To understand the money, you have to follow the rules of the IRS. The government allows you to receive tax-free stipends (per diems) because you are duplicating expenses to be in a specific location for work.
However, just because the IRS allows you to receive a stipend tax-free doesn’t mean your agency is legally forced to pay it if you aren’t working.
Most contracts are built on a simple premise: The agency pays you from the Bill Rate. When you work, the facility pays the agency, and the agency pays you. When you don’t work, that money flow stops.
Here is how that plays out in real life.
Scenario 1: YOU Cancel (Employee-Initiated)
The Verdict: You generally do not get paid stipends. Is it illegal? No.
In these scenarios, you are not “Ready, Willing, and Able” to work. You have technically breached your weekly contract. Since you aren’t generating the revenue (Bill Rate) that funds your paycheck, the agency usually prorates your stipend to cover the loss.
Common Examples:
- The Sick Call: You wake up with the flu and call out.
- Car Trouble: Your tire blows out and you physically can’t make it to the shift.
- Family Emergency: You have to fly home for a personal crisis.
- Credentialing Delays (Your Fault): You forgot to renew your BLS or didn’t submit your drug screen in time, so the hospital pulls you off the schedule.
The “Why”: Think of your pay package as a pie. The size of the pie is determined by a 40-hour work week. If you only provide 30 hours of value, the agency can’t pay you for the full pie without losing money. They aren’t “stealing” your stipend; they are withholding payment for services that weren’t rendered.
Scenario 2: THEY Cancel (Facility-Initiated)
The Verdict: You should get paid stipends (and wages!)… usually. The Catch: You need a strong Guaranteed Hours clause.
In these scenarios, you showed up! You are “Ready, Willing, and Able” to work, but the facility can’t (or won’t) utilize you. Because you held up your end of the bargain and are still incurring duplicate expenses to be there for them, you should be paid.
Common Examples:
- Low Census: The hospital is overstaffed and calls you off.
- Unit Maintenance: The OR is under construction or the Cath Lab is down for repairs.
- IT/Access Issues: You arrive on Day 1, but HR hasn’t set up your badge or computer login.
The “Why”: This is where Guaranteed Hours are your best friend. If you have this clause in your contract, the agency bills the hospital (or eats the cost) to pay you because you were available.
The Contract Trap: When “Guaranteed” Isn’t Actually Guaranteed
Here is the part that trips up even experienced travelers. You might think you have Guaranteed Hours, but your contract might have a “Carve-Out Clause.”
These are specific loopholes written into the contract that allow the agency to void your guarantee in specific situations. If the guarantee is voided for that day, the agency is no longer obligated to pay you the stipend for that day.
Look closely at your contract for language like this:
“Guaranteed Hours shall be reduced by the number of hours the Facility is closed due to Holidays, State of Emergencies, or Inclement Weather.”
If you sign a contract with that sentence, here is what happens:
- The Holiday Hit: It’s Thanksgiving. The clinic is closed. You are ready to work, but the doors are locked.
- The Loophole: Because “Holidays” are listed as an exception, your Guaranteed Hours for that week drop from 40 to 32.
- The Stipend Loss: Since your stipend is tied to your contracted hours, the agency can legally prorate your stipend for that holiday, even though it wasn’t your choice to miss work.
Is this illegal? No. It feels unfair, but it’s a contract term you agreed to. The agency is simply enforcing the specific exceptions you signed.
Action Item: Before you sign, CTRL+F for “Holiday” and “Weather.” If you see them listed as exceptions to your guarantee, try to negotiate them out!
Wait, isn’t this “Wage Recharacterization”?
This is the buzzword everyone throws around, but it is often misused.
True Wage Recharacterization is when an agency tries to hide taxable wages as tax-free stipends to lower their tax burden (and yours).
- Example: Paying you a suspiciously low wage ($10/hr) and a massive stipend ($70/hr), and then paying everything strictly by the hour. This looks like the stipend is actually just part of your wage.
Standard Prorating is different.
- Example: Your contract pays a fair taxable wage (ex. $25/hr) and a weekly flat stipend ($1,000/wk). If you miss one of your three shifts, the agency deducts 33% of that weekly stipend.
This distinction matters! Prorating your stipend because you missed a shift is standard industry practice and is generally compliant with tax laws.
The Bottom Line
Knowledge is power. If you miss work because you can’t be there, expect your check to be lighter—that’s the trade-off of the travel life.
But if you are ready to rock and the facility sends you home (or closes for a holiday), your paycheck depends entirely on the strength of your contract.
Next Step: Pull out your current contract and find the Guaranteed Hours section. Read the fine print. Does it protect you from low census? Does it exclude holidays? Knowing what you signed is the only way to avoid payday surprises.
