October 1, 2022

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Illinois Amends Nurse Agency Licensing Act to Bar Non-Competes, Incorporate Reporting, Deal Obligations

3 min read

Amendments to the Illinois Nurse Agency Licensing Act (HB 4666) intention to market transparency and protections for health care employees, but, in practice, they make it additional challenging for nurse staffing organizations to keep personnel.

Beneath the new legislation, staffing businesses undertaking enterprise in Illinois can no for a longer period enter into covenants not-to-contend with nurses or licensed nursing assistants. Equally, nurse staffing agencies are prohibited from requiring any “buy-out” rate, placement payment, or other kind of compensation if the nurse is employed by a health care facility. The regulation applies only to agreements entered into just after the law’s efficient date of July 1, 2022, so prior current agreements need not be modified.

In addition to barring non-competes amongst nurse staffing businesses and nurses, HB 4666 also imposes sizeable reporting and compliance obligations on staffing companies. Contracts amongst staffing businesses and health care services must include things like a routine of all hourly invoice rates for each worker class, which may possibly consist of “hourly spend charge, shift differential, weekend differential, hazard pay, cost nurse incorporate-on, time beyond regulation, vacation shell out, and journey or mileage fork out.” Contracts also must supply a “full description of administrative charges” and, most drastically, include a provision that no a lot less than 100 per cent of the hourly rate ought to be compensated to the contract nurse.

All this sort of contracts will have to be submitted to the Illinois Office of Labor inside of five enterprise days of execution. Copies of all supporting invoices to health care expert services staff also need to be managed and submitted to the Department on ask for.

Additional, on a quarterly basis, nurse staffing agencies ought to post in depth studies to the Illinois Division of Labor categorised by county and provider kind. The stories must contain:

A list of the regular quantity charged to the healthcare facility for each and every individual worker category
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A listing of the average total paid out by the nursing agency to workforce in each and every individual worker class and
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A list of the ordinary sum of labor-related prices paid by nursing agency for each worker category, including payroll taxes, workers’ compensation insurance policy, qualified legal responsibility protection, credentialing and tests, and other employee-associated fees.

The Illinois Office of Labor will publish studies on its web site of a compilation of the data reported.

HB 4666 is the most recent in a sequence of steps building it extra tough for Illinois businesses to limit and retain staff members. In 2021, Illinois amended the Liberty to Operate Act and put restrictions, which include a $75,000 wage minimum amount, on all non-compete agreements (in each industry) in just the point out.

We stimulate all nurse staffing businesses with business in Illinois to reach out for assistance with regards to how to employ a detailed prepare to comply with the new legislation. This consists of examining and updating work and facility agreements and eradicating restrictive covenants, location and documenting fork out in a way that complies with the complexities of the new regulation, and establishing vital recordkeeping and reporting tactics.

Customers of the Jackson Lewis Healthcare Field group work with purchasers on all these issues day by day. Remember to contact the Jackson Lewis attorney you function with or 1 of our field team users if you have any questions about these important takeaways.

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