How Locums is Different from Being an Employee

Locum tenens jobs can span from a few days to a few months, making it feasible for physicians and clinicians to do locum tenens to earn money on the side, try out a facility before committing to permanent employment, or as a full-time career.

But making the choice between employment and locum tenens involves a range of factors. In this guide, we’ll help you break down the differences between being a W-2 employee and a locum tenens contractor.

The Rise of Locum Tenens as a Career Choice

Locum tenens is increasingly becoming part of an integrated workforce rather than short-term gap coverage used in emergency situations. Changes to the healthcare market such as clinician burnout, tightened healthcare system budgets, and staffing shortages are the primary cause of the increase for using locum tenens in the last decade. In SIA’s recent 2025 US Staffing Industry Forecast, locum tenens was the fastest-growing segment in staffing, with a market size projected to hit $9.9 billion in 2026. It’s experiencing a 4% year-over-year increase as demand for clinician services continues and the use of NPs and PAs expands.

And as these market forces continue to put pressure on the industry, acceptance of locums has increased as a long-term strategy rather than a back-up plan. According to CHG Healthcare’s 2025 State of Locum Tenens Report, nearly two-thirds (61%) of hospital decision-makers surveyed said they had a positive impression of locum providers who worked in their facilities, up from 45% in 2023. And locum tenens use was 25% higher in 2024 than predicted.

As demand for locum clinicians rises, the options for clinicians looking for a different way to work expands. Locums goes from being an afterthought to a legitimate career strategy.

How Locums Differs from Employment

But what are the pros and cons to becoming a locum tenens clinician? Should you give up employment entirely? Do any drawbacks exist for taxes, insurance, or taking time off?

These can be scary, but important, questions. And we’ll help answer some of the most common concerns and questions below.

Employment

Most physician and clinician careers are employment-based, which means you receive consistent pay for a set number of hours. Employees pay for their taxes and benefits through deductions from their gross income and, in some cases, direct contributions. Employers pay for some portion of the employees’ taxes and usually a portion of benefits as well.

Being an employee usually provides a predictable work environment, often with a consistent schedule. Comprehensive benefit packages, including health insurance, retirement plans, and paid time off, contribute to overall job security and well-being. Employees usually benefit from structured career paths with opportunities for advancement, access to training programs, and support for professional development. They learn the ins and outs of technology systems and procedures and often feel like part of a “family”. But they often get mired in administrative work, receive limited time off, and get stuck in long-term contracts. Many clinicians experience a loss of autonomy and miss working directly with patients. And nearly all of them work more than the set number of hours for their pay, blurring the line between work and personal life. In addition, dealing with board meetings, office politics, and personnel management furthers the gap between the reason they got into healthcare and their reality.

Locum Tenens

On the other hand, locum tenens is a contractor relationship. Locum tenens physicians and clinicians operate as a separate entity from the healthcare facility they are stationed with, often operating their own business or working as self-employed professionals. Locum tenens professionals choose when and where they work, providing them with control over their schedules and the ability to take time off between assignments. Part-time contracts are common, with specific contract language for compensation above the agreed hours. Many locums clinicians can schedule vacations and time off months or years in advance. There is also no expectation of “staying late” or checking your messages from home. When a locums clinician walks out of the facility, they know they’re off work.

Locum tenens physicians and clinicians also have the potential for higher earnings due to the urgent nature of most locums assignments, the location of the facility, or the high demand of their specialty. They can avoid long-term commitments and travel the country on facility time (and expense) while still earning a higher wage. Locum tenens physicians and clinicians get to spend more time with patients and their cases since they don’t have the administrative burdens of permanent staff. Higher patient satisfaction and reduced medical errors are often the result, and locums clinicians report higher job satisfaction than their counterparts. However, they often report not feeling like a part of a staff (that’s where Floyd Lee Locums comes in), can struggle with learning new systems and procedures at each facility, and have to navigate their own health insurance, taxes, and training.

Learn more about locum tenens in our free Locums Toolkit

Factors to Consider

Of course, any career decision comes with many facets to consider. With locum tenens, you’ll want to ensure you have a plan for health insurance, retirement, and taxes, to name a few. While they are done differently as a contractor versus as an employee, don’t let the unknown scare you. We’re right here to help guide you and answer any questions you might have.

In fact, Floyd Lee Locums offers health insurance for clinicians and their families and connects you with trusted professionals who specialize in locum tenens.

The Benefits of Locum Tenens over Employment

Locums clinicians often cite that the benefits far outweigh the drawbacks of locums life. And concierge locums staffing firms like Floyd Lee Locums can take many of the burdens off your plate (more on that below).

How would you like to keep practicing medicine and regain control over your schedule? What would it be like to earn extra income or try out a new situation without committing to a long-term contract? How would it feel to take a vacation and not get calls and texts about work?

As a locum tenens professional, you get to call the shots. You can reimagine your career without sacrificing your personal goals. Each assignment becomes a new chapter in your journey with new experiences and skills, offering the chance to explore different areas of medicine and to work with people from all walks of life.

“This opportunity provides the perfect balance of professional fulfillment and flexibility. Each assignment has allowed me to gain exposure to different medical settings, adapt to new environments, and work with diverse medical teams and patient populations. This variety keeps my work dynamic and rewarding as I help meet the need of facilities with critical oncology physician shortages.”

Mary D.

Pay: Lucrative pay allows you to reach your personal goals faster. Pay off your student loads, invest in your future, or live the lifestyle you’ve been craving.

Mental Health: Locums can be a game-changer for burnout. Work the hours you are contracted to work and then enjoy your personal time without interruption. Enjoy true time off with the experiences and people you love.

Travel: Enjoy travel and housing on someone else’s dime. Explore new places, immerse yourself in different cultures and patient demographics, or just relax on a porch taking in the scenery. You get to decide where you go!

Experiences for your CV: One of the biggest benefits for younger clinicians is adding experiences to a CV, and locums assignments are the perfect way to do that. Try out a new type of facility, gain a skill you wouldn’t get without changing jobs, or dive into new patient demographics. With locums, you can add experiences to your CV much faster and easier than with a traditional W-2 job.

Is Locum Tenens Right For Me?

“I love traveling and discovering not only the United States but the world. Working with Floyd Lee has allowed me to do that. It has fed my passion for travel and my love for healthcare.”

Denise J.

“I’ve really enjoyed being an exclusively locums physician for the past two years. As an internist, a locums career allows me the flexibility to spend holidays with my family and maximize my time with my kids.”

Katharine M.

“This work-life balance is something I was seeking after 30 years of full-time dedication to oncology practice and administration. Now two plus years in, my experience with Floyd Lee Locums has been incredibly positive. The combination of professional fulfillment, outstanding support, and flexible scheduling makes this an ideal opportunity for physicians who want to enhance their career while maintaining a balanced life.”

Mary D.

“I live in an area that has a very poor economy. This locums assignment has enabled me to bridge that income gap and to continue to pay for my child’s college expenses.”

Sarah F.

“I grew in my professional skills. I made new professional relationships and friendships. My support from FLL was the best I’ve ever experienced. It was also the best compensation in my career!”

Thomas P.

The Floyd Lee Locums Difference

Our hearts are on-fire for healthcare, so we approach things differently than other locum tenens firms. For us, personalization is a specialty. We may not be able to perform an eye exam or prep a patient for an ultrasound, but we can take everything off your plate possible so that you can do your specialty to the best of your ability and enjoy your personal time.

That’s why we pride ourselves on our concierge approach. We are all-in to improve healthcare, and that starts with clinicians having a better support system around them. We take care of everything we can for you. We’ll schedule your vacation, fill out all those forms, and help you navigate your new community at your assignment. We’ll surround you with the exact support you want.

My recruiter is the best recruiter ever!!! He actually cares about your experience with the client, he checks in with my mental health. Floyd Lee looked out for me professionally when I experienced an unfortunate event and personally when I experienced loss in my family.

Our remarkable Consultants are healthcare staffing professionals who deliver top-tier service. They have years of experience and extensive training to deliver you a seamless and personalized experience. Along with your Consultant, we have several teams dedicated to your success, including:

• Licensing and credentialing specialists
• Payroll and timekeeping specialists
• Concierge specialists
• Travel and accommodations agents

In addition, our concierge service means you get things like:

• A Group Health Benefits Plan available to you and your family with year-round coverage (even between assignments) that provides health insurance, life insurance, and disability insurance.
• A personal concierge service that can help you make dinner reservations, find the right doggie daycare on assignment, send a gift to a loved one, and more.
• Transparent and timely payroll so clinicians can focus on care, not paperwork.
• Real human connection and advocacy, with recruiters and support teams who know you by name so you feel like part of a team.
• 24-hour emergency travel support with a real human.
• A network of professionals who specialize in locum tenens including financial planners, tax advisors, and insurance agents. Our network is your network.
• In-house travel specialists, licensing professionals, and credentialing team. No outside or contracted personnel. We all work at Floyd Lee Locums.
• Regular updates and check-ins to see how you’re doing and if we can assist you in any way with your professional or personal life.
• Company DEI certification from Diversity for Social Impact and individualized training for our Healthcare Consultants, because everyone is unique and deserves support that fits their life.
• Personal and logistical support during life events, whether celebratory or challenging.
• Celebrations of milestones and achievements including birthdays, professional wins, and industry holidays.

At Floyd Lee Locums, our mission is to humbly serve the people in healthcare who change lives daily. We care about you as a person, not just as a professional.

I couldn’t have had a better experience — The agents assigned to me became like trusted friends — Friendly, professional, kind, personal, reliable, and secured me with a position which was, actually and truthfully, life-changing.