Travel Nurse Overtime Pay: How OT Works and How to Maximize It

Introduction: Overtime Can Make or Break Your Contract

Disclaimer: This guide is for educational purposes only and does not constitute tax advice. Consult a qualified CPA or tax professional for guidance on your specific situation.

Overtime can add $500 to $1,500 or more to your weekly paycheck — but only if you understand how it is calculated. And here is what trips most travel nurses up: overtime pay for a travel nurse works differently than what you might expect from your staff nursing days. The calculation is based on your taxable hourly base rate, not your total blended rate, which means your OT earnings can be dramatically lower than you anticipated if you do not understand the math.

I have talked to nurses who picked up extra shifts expecting time-and-a-half on their full “hourly rate” of $55, only to find their OT was calculated at 1.5 times their $22 base rate — just $33 per hour. That is a $33 per hour gap between expectation and reality. It is still extra money, but it changes the calculus on whether that extra shift is worth the exhaustion.

This article explains exactly how travel nurse overtime is calculated, how state-specific rules can change the equation, and how to structure your contracts and negotiate your pay to maximize your overtime earnings.

How Overtime Is Calculated for Travel Nurses

Under the Fair Labor Standards Act (FLSA), overtime kicks in after you work 40 hours in a single workweek. For every hour beyond 40, you are entitled to at least 1.5 times your “regular rate of pay.” So far, this is the same as any other hourly job in America.

Here is where travel nursing gets tricky: your regular rate of pay for OT purposes is your taxable hourly base rate — not your blended rate, not your effective hourly rate, and not your stipends.

Your tax-free stipends (housing, M&IE, travel reimbursement) are not included in overtime calculations because they are reimbursements, not wages. They are the same whether you work 36 hours or 48 hours. The stipend does not increase with extra shifts.

The Math That Matters

Let’s look at how the base rate directly impacts your overtime earnings:

Nurse A: $22/hr base rate

Regular pay (40 hours): $22 x 40 = $880
OT rate: $22 x 1.5 = $33/hr
8 hours of OT: $33 x 8 = $264
Total weekly taxable pay with OT: $1,144

Nurse B: $30/hr base rate

Regular pay (40 hours): $30 x 40 = $1,200
OT rate: $30 x 1.5 = $45/hr
8 hours of OT: $45 x 8 = $360
Total weekly taxable pay with OT: $1,560

Both nurses worked the same 48 hours. But Nurse B earned $96 more in overtime for those 8 extra hours. Over a 13-week contract where you pick up 8 hours of OT each week, that is a $1,248 difference — just from having a higher base rate.

This is why your base rate matters far more than many nurses realize. A package with a higher base rate and slightly lower stipends can actually pay more over the course of a contract if overtime is available, because every OT hour earns at a higher multiplier.

State-Specific Overtime Rules

Federal law provides the baseline: overtime after 40 hours per week. But several states have additional rules that can work in your favor — or complicate the picture.

California: The Gold Standard for OT

California has the most generous overtime rules in the country for nurses:

Daily overtime: Time-and-a-half after 8 hours in a single day
Double time: Double your base rate after 12 hours in a single day
Weekly overtime: Time-and-a-half after 40 hours in a week (standard FLSA)
Seventh consecutive day: Time-and-a-half for the first 8 hours, double time after 8 hours

For a travel nurse working three 12-hour shifts in California, each shift includes 4 hours of daily OT (hours 9-12) even if you only work 36 hours that week. If your base rate is $28, that is an extra $14 per hour for 12 hours per week — $168 per week in OT that you would not receive in most other states.

On top of that, if your shift runs past 12 hours (which happens in nursing), those hours are at double time — $56 per hour in this example.

California assignments are popular for good reason. The combination of high bill rates, daily OT, and double time provisions can make California contracts significantly more lucrative even after accounting for the state’s high income tax. Use the pay calculator to model the net difference.

Other States With Daily Overtime Rules

While California is the most well-known, a handful of other states have or have had daily overtime provisions. Alaska requires overtime after 8 hours in a day for most workers. Nevada has a daily OT threshold of 8 hours for employees making less than 1.5 times the minimum wage (most nurses exceed this threshold, so it may not apply).

Colorado, while not having a daily OT requirement, has unique rules about mandatory rest periods and meal breaks that can affect scheduling and, indirectly, overtime.

Which OT Rules Apply to You?

The overtime laws of the state where you are physically working apply to your assignment, regardless of where your agency is headquartered or where your tax home is located. If you hold a compact license and work in California, California OT rules apply. If you use that same compact license for an assignment in Texas, Texas (and federal) OT rules apply.

Always confirm which OT rules apply to your specific assignment, especially in states with worker-friendly labor laws. Your contract should specify the overtime policy, and if it does not, ask before signing.

Guaranteed Hours vs. Overtime

Understanding the relationship between guaranteed hours and overtime is critical for evaluating any contract.

What “Guaranteed Hours” Means

Guaranteed hours is a contract provision that promises you a minimum number of hours per week, regardless of whether the facility has enough work to keep you busy. If your contract guarantees 36 hours and the unit is slow on Tuesday, you still get paid for 36 hours even if they send you home or float you.

Common guaranteed hours configurations include:

36 hours/week — Standard three 12-hour shifts. OT kicks in after 40 hours (federal) or after 8 hours per shift (California).
48 hours/week — Four 12-hour shifts. This is already 8 hours above the federal OT threshold, so you are guaranteed OT every week.
40 hours/week — Five 8-hour shifts or some combination. No built-in OT at the federal level.

Why This Matters for Overtime

A 48-hour guaranteed contract includes 8 hours of built-in overtime every week. At a $25 base rate, that is an extra $300 per week in OT ($37.50 x 8). Over 13 weeks, that is $3,900 in guaranteed overtime pay.

Compare that to a 36-hour contract where you might pick up extra shifts but are not guaranteed OT. If the unit is slow or overstaffed, those extra shifts may never materialize.

What Happens When Hours Get Cut

If your contract guarantees 36 hours but the facility cancels one of your shifts, you should still be paid for 36 hours under the guaranteed hours clause. However, “guaranteed” does not always mean what you think it means. Read the fine print:

Some contracts guarantee hours but allow the facility to float you to a different unit instead of cancelling.
Some contracts cap the number of cancellations (for example, you can be cancelled one shift per contract without pay).
Some contracts have a “low census” clause that allows cancellation without pay during periods of low patient volume.

A contract with guaranteed hours and no low-census escape clause is the gold standard. Negotiate for it.

How Agencies Structure OT Pay

Time-and-a-Half on Base Rate Only

This is the most common overtime structure in travel nursing. Your OT rate is exactly 1.5 times your taxable base hourly rate. Your stipends remain unchanged regardless of how many hours you work.

Example: $24/hr base rate, 48-hour week

Regular time (40 hours): $24 x 40 = $960
OT (8 hours): $24 x 1.5 x 8 = $288
Weekly stipends: $1,800 (unchanged)
Total weekly gross: $3,048

The OT payment here is $288. If you were expecting OT on a $55 “blended rate,” you might have anticipated $660 in OT. The gap is significant. This is exactly why understanding your pay structure before signing is essential.

Blended OT Rate

Some agencies advertise a higher OT rate that blends in a portion of the stipend. For example, they might quote your OT rate as $42 per hour instead of $36 (1.5x a $24 base). If the agency is genuinely paying you more, this is a great deal.

However, be cautious. Some agencies achieve this “higher” OT rate by reducing your stipends on OT weeks. They shift money from the tax-free stipend column to the taxable OT column, which actually costs you money after taxes. Ask your recruiter explicitly: “Does my stipend change on weeks when I work overtime?”

If the answer is yes, run the full calculation to see whether the net result is actually better or worse. Use the pay calculator with and without OT to compare.

OT with Stipend Adjustments

In rare cases, some agencies reduce your weekly stipend on weeks when you work overtime. Their rationale is usually that OT hours “change the proportion of taxable to non-taxable income,” but the real reason is often margin preservation.

This practice is not necessarily illegal, but it is a red flag. If your stipend drops by $200 on a week when you earn $300 in OT, your net gain from working 8 extra hours is only $100 before taxes. That is barely worth the effort.

Red flags to watch for:

Stipend amounts that change based on hours worked
Contract language tying stipend amounts to “scheduled hours only”
Vague explanations from your recruiter about how OT affects your pay package

Always get the OT and stipend terms in writing before you sign.

Maximizing Your Overtime Earnings

Here are five strategies for getting the most out of overtime on your travel contracts:

Strategy 1: Negotiate a higher base rate. This is the single most effective way to increase your OT earnings. Even if it means slightly lower stipends, a higher base rate pays dividends every time you work an extra hour. A $4 increase in base rate means $6 more per hour of OT. Over 8 hours of weekly OT across a 13-week contract, that is an extra $624.

Strategy 2: Choose facilities known for OT availability. Some hospitals are chronically short-staffed and consistently offer extra shifts to travel nurses. Ask your recruiter about OT history at the facility. Units with high turnover, new unit openings, or seasonal census surges are more likely to offer regular OT.

Strategy 3: Volunteer strategically. Do not wait to be asked. Let your charge nurse know you are available for extra shifts. Nurses who are reliable, flexible, and communicate availability proactively get offered shifts first. But be strategic — four 12-hour shifts per week is sustainable for most people, five is where burnout sets in fast.

Strategy 4: Read your contract’s OT clause before signing. Know exactly how OT is calculated, whether stipends change on OT weeks, and what happens if you are mandated to work overtime (some facilities mandate OT during emergencies). Do not assume anything.

Strategy 5: Consider crisis or rapid-response contracts. Crisis contracts often have built-in overtime (48 or 60 hours per week) at premium rates. The work is intense and the assignments are often short (4-8 weeks), but the earnings per hour can be exceptional. These contracts also typically carry higher base rates, which amplifies the OT calculation.

The Tax Impact of Overtime

Remember that overtime pay is fully taxable. Unlike your stipends, every dollar of OT hits your W-2 and is subject to federal income tax, state income tax (where applicable), Social Security, and Medicare.

If heavy OT pushes your annual taxable income into a higher federal tax bracket, the marginal tax rate on those extra hours increases. For most travel nurses, the effective combined tax rate on OT earnings (federal + state + FICA) falls in the 30-40% range.

That $33/hr OT rate might net you $20-$23 per hour after taxes. Still worth it in most cases, but worth knowing before you commit to grinding extra shifts all season.

OT and Your Pay Package: Running the Numbers

The pay calculator lets you model overtime scenarios so you can see the real impact before signing a contract.

Scenario: 36-Hour Contract with OT vs. 48-Hour Contract Without OT

Contract A: 36 hrs/week, $28 base rate, $1,400 housing stipend, $400 M&IE

Weekly gross (no OT): $28 x 36 + $1,400 + $400 = $2,808
If you pick up 12 hrs OT: add $28 x 1.5 x 12 = $504
Weekly gross with OT: $3,312

Contract B: 48 hrs/week, $24 base rate, $1,200 housing stipend, $350 M&IE

Regular time (40 hrs): $24 x 40 = $960
Built-in OT (8 hrs): $24 x 1.5 x 8 = $288
Weekly gross: $960 + $288 + $1,200 + $350 = $2,798

Contract A without OT and Contract B are nearly identical in gross weekly pay. But Contract A with OT blows Contract B out of the water because the higher base rate magnifies the OT earnings. And if OT dries up on Contract A, you are still earning $2,808 per week — essentially the same as Contract B.

When Fewer Hours at a Higher Rate Wins

Sometimes working fewer hours at a higher rate produces better results than grinding more hours at a lower rate. Consider the burnout factor: fatigue-related errors put your license at risk, and exhaustion reduces your quality of life. If a 36-hour contract at $30/hr base pays a comparable net amount to a 48-hour contract at $22/hr base, the 36-hour contract gives you your time back.

Run the numbers. Factor in taxes. Decide what your time outside the hospital is worth to you. The calculator does not account for burnout, but you should.

Common Overtime Pitfalls

Assuming OT applies to your blended rate. This is the most common misconception. When a recruiter says your “rate” is $55/hour, that is the blended rate including stipends. OT is calculated on the taxable base portion only, which might be $22-$28 of that $55.

Not reading the OT clause in your contract. Your contract should specify exactly how overtime is calculated, whether stipends change on OT weeks, and what happens during mandated OT situations. If the OT clause is vague or missing, ask for clarification in writing before signing.

Working OT without confirming it will be paid at 1.5x. Some facilities have internal policies about approving overtime. If you pick up an extra shift without getting OT approval, you might find it paid at your regular rate or even as “bonus” pay (which may be calculated differently). Confirm with your charge nurse and your agency that extra hours will be classified and paid as overtime.

Agencies that cap OT or discourage extra shifts. Some agencies prefer that you do not work overtime because it increases their costs (they may owe the facility less on OT hours due to bill rate structures, or they may have to absorb higher costs). If an agency actively discourages OT, consider whether that aligns with your income goals.

Confusing “bonus pay” with “overtime pay.” Some facilities offer “bonus shifts” at a flat rate (for example, an extra $200 for picking up a shift). This is not overtime — it is a bonus, and it may be taxed differently. Bonus pay is nice, but do not confuse it with the legally required time-and-a-half overtime premium.

FAQ: Travel Nurse Overtime

Is OT calculated on my blended rate or base rate?

Overtime is calculated on your taxable base hourly rate, not your blended rate. Your blended rate includes tax-free stipends prorated over your worked hours, but stipends are reimbursements, not wages, and are not factored into the overtime calculation. If your blended rate is $55/hr and your base rate is $24/hr, your OT rate is $36/hr (1.5 x $24), not $82.50 (1.5 x $55). This distinction is the most important thing to understand about travel nurse overtime.

Can my agency refuse to pay overtime?

No. Under the FLSA, overtime pay is a legal requirement for non-exempt employees who work more than 40 hours in a workweek (or whatever threshold applies under state law). Your agency cannot refuse to pay overtime for hours you actually worked. However, they can limit your ability to work overtime by not approving extra shifts, capping your scheduled hours, or including contract provisions that restrict OT. If you worked the hours, they must pay OT — but they can prevent you from working those hours in the first place.

How does OT affect my taxes?

Overtime earnings are fully taxable as regular income. They are included in your W-2 wages and subject to federal income tax, state income tax, Social Security (6.2%), and Medicare (1.45%). Heavy overtime can push your annual taxable income into a higher marginal tax bracket, meaning each additional OT dollar is taxed at a higher rate. Use the pay calculator to estimate the after-tax value of overtime in your specific tax bracket. Despite the higher tax hit, overtime is almost always financially worth it — you just need to factor in the real net rate, not the gross rate.

Should I take a contract with guaranteed OT?

Contracts with guaranteed overtime (typically 48 hours per week) can be very lucrative because they eliminate the uncertainty of whether extra shifts will be available. However, working 48 hours per week for 13 weeks straight is physically and mentally demanding. Before accepting, honestly assess whether you can sustain that workload. Also compare the guaranteed-OT contract to a 36-hour contract where you can pick up OT voluntarily — sometimes the flexibility of choosing when to work extra is worth more than the guarantee. Run both scenarios through the calculator and factor in your personal burnout threshold.

Does OT count toward my W-2 income?

Yes. Overtime pay is taxable wages and appears on your W-2 along with your regular hourly pay, shift differentials, and any taxable bonuses. This is actually a benefit if you are applying for a mortgage or loan, because higher W-2 income strengthens your application. Nurses who work regular overtime tend to have higher W-2 income relative to their total compensation, which can make it easier to qualify for financing compared to nurses whose packages are heavily weighted toward tax-free stipends.

Key Takeaways

OT is calculated on your taxable base rate, not your blended rate. A $24 base rate means $36/hr OT — not $82.50 based on your $55 blended rate.
A higher base rate dramatically increases OT earnings. Even a few dollars per hour more on the base rate compounds significantly over a full contract of OT hours.
California’s daily OT and double-time rules make it the most OT-friendly state for travel nurses. Factor this in when choosing assignments.
Always read the OT clause before signing. Know whether stipends change on OT weeks, how OT is calculated, and whether extra hours require prior approval.
Use the pay calculator to model OT scenarios. Compare contracts with and without overtime to see the true net impact on your take-home pay.

Affiliate Placement Notes

Pay calculator tool CTA in “Running the Numbers” section and key takeaways
Tax software link in the OT tax impact discussion
Contract review service affiliate in “Common Pitfalls” section