Staffing Agencies – New Illinois Law Addresses Nurse aids during a nursing shortage.

Contributor: Jordan Matyas

Following an increase in demand for nurses and nurse aids during the pandemic, HB 4666 bill amends the Nurse Agency Licensing Act to increase transparency in the healthcare industry between staffing agencies and employees.

Staffing agencies are now prohibited from entering covenants not to compete with nurses and nurse aides. New contracts with facilities must be reported to the Illinois Department of Labor (IDOL) within five business days of their effective date.

The Act protects nurses and nurse aids by ensuring they are paid the wage identified in their contracts and authorizing the Illinois Department of Labor to recover any unpaid wages for the employee.

Staffing agencies are also prohibited from requiring the payment of fees for liquidated damages, conversion, employment, buy-out, placement, or other compensation if the employee is hired as a permanent employee of a health care facility.

The Act also creates new reporting requirements that (1) nurse staffing agencies must submit quarterly reports related to the average charges to health care facilities to the Department of Labor and (2) the Department must publish a yearly report by county of the average amounts paid to employees. The changes are effective on July 1, 2022.

The information in this blog post is provided for informational purposes only and is not intended to be legal advice. You should not make a decision whether or not to contact an attorney based upon the information in this blog post. No attorney-client relationship is formed nor should any such relationship be implied. If you require legal advice, please consult with an attorney licensed to practice in your jurisdiction.