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Illinois Amends Nurse Agency Licensing Act to Bar Non-Competes, Add Reporting, Contract Obligations

Illinois Amends Nurse Agency Licensing Act to Bar Non-Competes, Add Reporting, Contract Obligations

Amendments to the Illinois Nurse Company Licensing Act (HB 4666) aim to promote transparency and protections for healthcare workers, but, in follow, they make it more tough for nurse staffing companies to keep personnel.

Beneath the new legislation, staffing businesses doing business enterprise in Illinois can no lengthier enter into covenants not-to-compete with nurses or qualified nursing assistants. Similarly, nurse staffing organizations are prohibited from requiring any “buy-out” fee, placement price, or other kind of compensation if the nurse is hired by a health care facility. The law applies only to agreements entered into soon after the law’s efficient date of July 1, 2022, so prior current agreements have to have not be modified.

In addition to barring non-competes concerning nurse staffing businesses and nurses, HB 4666 also imposes important reporting and compliance obligations on staffing organizations. Contracts between staffing companies and healthcare services need to include a program of all hourly invoice premiums for each employee group, which may perhaps consist of “hourly fork out amount, shift differential, weekend differential, hazard shell out, cost nurse increase-on, overtime, holiday getaway pay back, and travel or mileage spend.” Contracts also must supply a “full description of administrative charges” and, most significantly, include a provision that no considerably less than 100 {e421c4d081ed1e1efd2d9b9e397159b409f6f1af1639f2363bfecd2822ec732a} of the hourly level really should be paid to the agreement nurse.

All such contracts should be submitted to the Illinois Office of Labor in just five small business days of execution. Copies of all supporting invoices to health care expert services personnel also ought to be taken care of and submitted to the Section upon request.

More, on a quarterly basis, nurse staffing organizations need to post detailed reports to the Illinois Department of Labor labeled by county and provider style. The reviews have to consist of:

A list of the typical volume charged to the healthcare facility for each and every person employee class
A list of the typical total paid by the nursing agency to employees in each individual individual employee classification and
A checklist of the ordinary amount of labor-similar charges paid by nursing company for every worker class, which includes payroll taxes, workers’ compensation insurance policy, specialist legal responsibility protection, credentialing and tests, and other personnel-related expenses.

The Illinois Office of Labor will publish experiences on its website of a compilation of the information described.

HB 4666 is the latest in a collection of steps creating it far more complicated for Illinois businesses to prohibit and retain personnel. In 2021, Illinois amended the Flexibility to Get the job done Act and positioned limitations, which include a $75,000 wage minimum amount, on all non-compete agreements (in just about every business) inside of the condition.

We inspire all nurse staffing businesses with enterprise in Illinois to achieve out for direction regarding how to put into action a detailed program to comply with the new regulation. This features examining and updating work and facility agreements and taking away restrictive covenants, placing and documenting shell out in a way that complies with the complexities of the new regulation, and developing essential recordkeeping and reporting procedures.

Associates of the Jackson Lewis Healthcare Market group work with clientele on all these challenges everyday. Make sure you make contact with the Jackson Lewis attorney you function with or one of our industry group users if you have any thoughts about these important takeaways.