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Prohibit Direct-hire Fee Health-care Staff Agency

Concerning a prohibition against requiring compensation to a health-care staffing agency if a contracted health-care facility hires the health-care staffing agency's employee as a permanent employee of the health-care facility.
2023 Regular Session
Health Care & Health Insurance
Labor & Employment
Bill Summary

In a contract between a supplemental health-care staffing agency (staffing agency) and a health-care worker or health-care facility for the placement of a licensed or certified nursing professional, the act prohibits the staffing agency from requiring payment for liquidated damages, employment fees, or other compensation (contract compensation) to the staffing agency if the health care facility hires the health-care worker as a permanent employee prior to or after the termination of the contract with the staffing agency; except that the prohibition does not apply to contract compensation attributable to and chargeable for a 30-calendar-day period commencing when the health-care worker is first placed at the health-care facility.

If a staffing agency unlawfully collects or attempts to collect contract compensation from a health-care worker or health-care facility, the health-care worker or health-care facility may bring a legal action for damages, a civil penalty not to exceed $5,000 per violation, and injunctive relief. The prevailing party is entitled to reasonable attorney fees.

APPROVED by Governor May 1, 2023

EFFECTIVE May 1, 2023
(Note: This summary applies to this bill as enacted.)


Became Law


Bill Text

The effective date for bills enacted without a safety clause is August 7, 2024, if the General Assembly adjourns sine die on May 8, 2024, unless otherwise specified. Details