Illinois Gov. JB Pritzker on May 31 signed into law legislation that will restrict noncompetes and conversion fees as well as require healthcare staffing firms to submit reports to the state on the average charges for nurse staffing, the Illinois Department of Labor reported.
The law, HB 4666, takes effect July 1.
“This bill critically protects temporary nurses and nurse aides’ right to change jobs or get hired directly by a healthcare facility,” said Jane Flanagan, acting director of the Illinois Department of Labor. “It will also increase stability and transparency in the healthcare industry in the state.”
According to the department, the law will:
- Prohibit nurse staffing agencies from entering into covenants not to compete with nurses and certified nurse aides.
- Prohibit nurse staffing agencies from requiring the payment of liquidated damages, conversion fees, employment fees, buy-out fees, placement fees and/or other compensation if the employee is hired as a permanent employee of the healthcare facility.
- Nurse staffing agencies must disclose new contracts with facilities to Illinois Department of Labor within five business days of the effective date (protected from Freedom of Information Act).
- Wage rates paid to nurses and certified nursing assistants must match wage rates identified on the contract. Failure to do so allows the department to recover underpaid wages for the worker.
The law also adds reporting requirements, the department said:
- Nurse staffing agencies must submit quarterly reports related to average charges to healthcare facilities to the Illinois Department of Labor.
- The department must publish yearly a report by county of average amounts paid to employees and charged to healthcare facilities.
