Reading a locum contract.

Rate and payment terms

The rate clause states the unit of pay and its amount: an hourly rate or a shift rate, plus any differentials for nights, weekends, or holidays.

The contract also states the pay cadence and what starts the clock. Net-30 means payment is due 30 days after a trigger, and net-30 from the end of a pay period is a longer wait than net-30 from each shift.

• The unitPer-hour, per-shift, and guaranteed-minimum arrangements produce different totals for the same day's work. The clause also says whether breaks are paid.
• Pay timingWhen pay is due after a worked shift, and what event starts that clock.
• Reimbursable expensesTravel, lodging, licensing, and credentialing fees can each be reimbursable or not. The contract says which.
• Late payA contract may or may not say what happens when pay is late: interest, an escalation contact, or a right to end the assignment.

Hours and shift definition

This section defines what counts as a shift and what happens when a shift runs over. Where an assignment includes on-call time, it also sets what triggers a call-back and whether on-call hours are paid.

• Shift length and overageThe standard shift length, what triggers overage pay, and whether you can be required to stay past the scheduled end.
• Schedule changesThe notice the facility owes you for a schedule change, and the notice you owe for a change you request.

Cancellation provisions

A cancellation clause sets the notice each side owes to cancel a shift or the whole assignment, and whether anything is paid when the facility cancels late. The terms aren't always the same for both sides.

• Notice from each sideThe notice the facility owes you and the notice you owe the facility are stated separately and can differ.
• Late cancellationWhether anything compensates you for lost time and travel when the facility cancels close to the shift. If the facility can cancel without notice and nothing is owed, the cost of a late cancellation falls on you.
• Termination for cause and without causeDifferent notice periods can apply to each, and the contract defines what counts as cause.

Malpractice and indemnification

Malpractice coverage answers who pays for a claim. Indemnification answers who has to make the other party whole if a claim is made.

The malpractice clause identifies the named insured, the policy limits, whether the policy is claims-made or occurrence, and who pays for tail if coverage ends. The malpractice guide explains those terms.

• Named insured and limitsThe policy that covers you on this assignment, its limits, and its form.
• Tail coverageIf the coverage is claims-made, the contract either says who buys tail when it ends or leaves the question open.
• Indemnification running to youA clause where the facility or agency covers you for claims arising from its own equipment, staffing decisions, or employees.
• Indemnification running from youA clause where you cover the facility or agency for its losses. Its reach depends on the wording, including whether it extends to events outside your control.

Restrictive covenants and non-competes

A restrictive covenant limits what you can do after the assignment. A non-compete restricts where you can work, and a non-solicit restricts recruiting a facility's staff or clients.

Whether a restrictive covenant can be enforced depends on state law, which varies and has been changing.

• Geographic and time scopeHow far the restriction reaches and how long it lasts after the assignment ends.
• Definition of competing workWhether it covers any locum work in the area or only work with named competitors.
• Non-solicitationA separate restriction on recruiting the facility's staff or clients, with its own scope and duration.

Scope of practice, dispute resolution, and the rest

The remaining clauses cover scope, records, and disputes.

• Scope of practiceThe contract describes the patient population and the work you'll be doing. That description sets what the facility can ask of you.
• Charting and documentation deadlinesDocumentation deadlines, any penalty for late charting, and whether you keep access to the EHR after the assignment ends.
• Background checks and drug testingWho pays for them, and whether a recent prior result is accepted.
• Dispute resolution and venueArbitration or court, and the state whose law governs the contract.
• Confidentiality and IPConfidentiality of facility information, and any assignment of intellectual property.

This is not legal advice

This guide explains what locum contract clauses do. It isn't legal advice. An attorney who works with healthcare or employment contracts can review a specific agreement with you.