Leadership | 09.21.22
Illinois Amends Nurse Agency Licensing Act to Bar Noncompetes, Add Reporting, Contract Obligations
Under new amendments to the Illinois Nurse Agency Licensing Act (House Bill 4666), staffing firms doing business in the state are prohibited from entering into noncompete covenants with nurses or certified nursing assistants. They also cannot require "buy-out" fees, placement fees, or other forms of compensation if the nurse is hired by a health care facility. The law, which applies to agreements entered into after July 1, 2022, also imposes significant reporting and compliance obligations on staffing firms. Among other things, contracts between staffing firms and health care facilities must include a schedule of all hourly bill rates per employee category and a "full description of administrative charges." Nurse staffing firms also must submit comprehensive quarterly reports to the Illinois Department of Labor that include a list of the average amount charged to the health care facility for each individual employee category and the average amount paid by the staffing firm to employees in each individual employee category.