Bill Title: Amends the Nurse Agency Licensing Act. Defines "long-term basis" and "temporary basis". Provides that nurses or certified nurse aides employed, assigned, or referred to a health care facility by a nurse agency may only be terminated by the nurse agency for cause. Provides that nurse agencies are prohibited from entering into covenants not to compete with a nurse or a certified nurse aide if the nurse is employed, assigned, or referred by a nurse agency to a health care facility on a temporary basis or the certified nurse aide is employed, assigned, or referred by a nurse agency to a health care facility on a temporary basis. Provides that a covenant not to compete entered into on or after July 1, 2022 between a nurse agency and a nurse or a certified nurse aide is illegal and void if (i) the nurse is employed, assigned, or referred by a nurse agency to a health care facility on a temporary basis or (ii) the certified nurse aide is employed, assigned, or referred by a nurse agency to a health care facility on a temporary basis. In any contract on a temporary basis with any nurse, certified nurse aide, or health care facility, prohibits a nurse agency from requiring the payment of liquidated damages, conversion fees, employment fees, buy-out fees, placement fees, or other compensation if the nurse or certified nurse aide is hired as a permanent employee of a health care facility. Provides that beginning on the effective date of the amendatory Act and ending on December 31, 2027, a nurse agency may enter into a covenant not to compete with a nurse or a certified nurse aide if the nurse is employed, assigned, or referred by a nurse agency to a health care facility on a long-term basis or the certified nurse aide is employed, assigned, or referred by a nurse agency to a health care facility on a long-term basis. Provides that if a covenant not to compete that was entered into on or before December 31, 2027 expires on or after January 1, 2028, the covenant not to compete shall remain in effect until its expiration date. Provides that to be enforceable, the term of a covenant not to compete entered into must be concurrent with the term of initial employment, assignment, or referral of the nurse or certified nurse aide to a health care facility. Provides that a contract on a long-term basis between any nurse, certified nurse aide, or health care facility and a nurse agency may provide for the payment of actual damages, conversion of fees, employment fees, buy-out fees, placement fees, or other reasonable expenses resulting from a violation of the contract that occurred during the initial employment, assignment, or referral term. Provides that provisions concerning contracts between nurse agencies and health care facilities do not apply to contracts on a long-term basis between a nurse agency and a health care facility providing for the employment, assignment, or referral of nurses or certified nurse aides to the health care facility. Effective immediately.

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Enrolled - Dead) 2023-01-10 - Passed Both Houses [SB1836 Detail]

Text: Latest bill text (Enrolled) [HTML]

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