The Hidden Fees Scam: Why Your $3,200/Week Contract Is Actually $2,800

Your $3,200/Week Contract Is Actually $2,800 (And Here’s Why)

You just got an offer: $3,200/week for an ICU contract in San Diego.

You’re excited. You start planning your budget. Then you get your first paycheck and it’s $2,800.

What happened?

Hidden fees. Agencies bury them in your contract, and most nurses don’t read the fine print until it’s too late.

Here’s how to spot them—and how to negotiate them out—before you sign.

The 5 Most Common Hidden Fees

1. The “Health Insurance” Fee ($150-300/week)

The Scam: Your recruiter says “Health insurance is included!” But they don’t tell you it’s deducted from your pay.

The Reality: Many agencies charge you $150-300/week for health insurance, even if you’re already covered by a spouse or parent.

How to Spot It:

• Look for “Benefits Deduction” or “Insurance Premium” in your pay stub
• Ask: “Is health insurance deducted from my pay, or is it truly free?”
• Check your contract for “Employee Contribution” language

How to Negotiate:

• If you have other coverage, ask to opt out and keep the $150-300/week
• If you need insurance, negotiate a lower premium or ask for a higher base rate to offset it

2. The “Housing Fee” ($200-400/week)

The Scam: Agencies offer “free housing” or “agency-provided housing,” but they charge you a “housing administration fee.”

The Reality: You’re paying $200-400/week for housing you could find yourself for $1,200/month on Furnished Finder.

How to Spot It:

• Look for “Housing Admin Fee,” “Accommodation Fee,” or “Lodging Fee” in your contract
• Compare: Agency housing fee vs. finding your own place
• Calculate: $200/week × 13 weeks = $2,600 you’re paying for “free” housing

How to Negotiate:

• Ask for a housing stipend instead of agency-provided housing
• If you must use agency housing, negotiate the fee down or ask for a higher base rate

3. The “Travel Reimbursement” Trap ($0-500 one-time)

The Scam: Agencies promise to “reimburse your travel costs,” but they cap it at $500 or require receipts for every expense.

The Reality: You drive 1,200 miles, spend $300 on gas, $150 on hotels, and $200 on food. The agency reimburses $500. You’re out $150.

How to Spot It:

• Look for “Travel Reimbursement Cap” or “Maximum Travel Allowance” in your contract
• Ask: “What’s the maximum travel reimbursement, and what does it cover?”
• Calculate your actual travel costs before accepting

How to Negotiate:

• Ask for a flat travel bonus instead of reimbursement (e.g., $1,000 travel bonus)
• Negotiate a higher cap ($1,000-1,500 instead of $500)
• Get it in writing that all travel expenses are covered

4. The “Licensing Fee” ($200-500 one-time)

The Scam: Agencies say they’ll “help you get licensed,” but they charge you $200-500 for “licensing assistance.”

The Reality: You could get licensed yourself for $50-150. The agency is charging you $350 for filling out a form.

How to Spot It:

• Look for “Licensing Fee,” “Credentialing Fee,” or “License Processing Fee” in your contract
• Ask: “Is there a fee for licensing, and can I do it myself?”
• Research: Check the state board’s website for actual licensing costs

How to Negotiate:

• Offer to get licensed yourself and ask for a $200-500 signing bonus instead
• If the agency insists on handling it, negotiate the fee down or ask for a higher base rate

5. The “Early Termination” Penalty ($500-2,000)

The Scam: Agencies don’t mention the early termination penalty until you try to leave early.

The Reality: If you break your contract for any reason (even if the hospital cancels you), you owe $500-2,000.

How to Spot It:

• Look for “Early Termination Fee,” “Contract Break Fee,” or “Cancellation Penalty” in your contract
• Ask: “What happens if I need to leave early, or if the hospital cancels me?”
• Read the entire contract, especially the “Termination” section

How to Negotiate:

• Ask to remove the early termination fee entirely
• If they won’t remove it, negotiate it down ($200-500 instead of $1,000-2,000)
• Add a clause: “No penalty if hospital cancels contract”

The Math: How Much Are You Really Losing?

Let’s say you accept a $3,200/week contract with these hidden fees:

• Health Insurance: -$200/week
• Housing Fee: -$300/week
• Travel Reimbursement Shortfall: -$150 (one-time, but let’s say $12/week over 13 weeks)
• Licensing Fee: -$350 (one-time, but let’s say $27/week over 13 weeks)
• Early Termination Risk: -$1,000 (if you need to leave early)

Your Real Weekly Pay: $3,200 - $200 - $300 - $12 - $27 = $2,661/week

Over a 13-week contract, you’re losing: ($3,200 - $2,661) × 13 = $7,007

How to Protect Yourself: The Pre-Sign Checklist

Before you sign any contract, ask these questions:

1. “Is health insurance deducted from my pay, or is it free?”
2. “Is there a fee for agency-provided housing?”
3. “What’s the maximum travel reimbursement, and what does it cover?”
4. “Is there a licensing fee, and can I opt out?”
5. “What’s the early termination penalty, and does it apply if the hospital cancels me?”
6. “Can I see a sample pay stub before I sign?”

Don’t Get Scammed. Get Matched.

Stop accepting contracts with hidden fees. Work with agencies that are transparent about all costs upfront.

Get Matched with Transparent Agencies We only work with agencies that disclose all fees in writing before you sign.

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Pro Tip: Use our Travel Nurse Pay Calculator to calculate your true take-home pay after all fees. Enter your base rate, subtract the hidden fees, and see what you’re actually making.