Public Act 102-1124
 
SB1836 EnrolledLRB102 15315 BMS 20671 b

    AN ACT concerning regulation.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Nurse Agency Licensing Act is amended by
changing Sections 3, 13, 14, and 14.3 as follows:
 
    (225 ILCS 510/3)  (from Ch. 111, par. 953)
    Sec. 3. Definitions. As used in this Act:
    "Certified nurse aide" means an individual certified as
defined in Section 3-206 of the Nursing Home Care Act, Section
3-206 of the ID/DD Community Care Act, or Section 3-206 of the
MC/DD Act, as now or hereafter amended.
    "Covenant not to compete" means an agreement between a
nurse agency and an employee that restricts the employee from
performing:
        (1) any work for another employer for a specified
    period of time;
        (2) any work in a specified geographic area; or
        (3) any work for another employer that is similar to
    the work the employee performs for the employer that is a
    party to the agreement.
    "Department" means the Department of Labor.
    "Director" means the Director of Labor.
    "Employee" means a nurse or a certified nurse aide.
    "Health care facility" is defined as in Section 3 of the
Illinois Health Facilities Planning Act, as now or hereafter
amended. "Health care facility" also includes any facility
licensed, certified, or approved by any State agency and
subject to regulation under the Assisted Living and Shared
Housing Act or the Illinois Public Aid Code.
    "Licensee" means any nurse nursing agency which is
properly licensed under this Act.
    "Long-term basis" means the placement of a nurse or a
certified nurse aide at a health care facility for an initial
employment, assignment, or referral term of more than 24
continuous months by a nurse agency that incurs the following
expenses to place the nurse or certified nurse aide at the
health care facility: (i) educational material expenses, if
required; (ii) expenses for credentialing, licensure, or
certification; or (iii) expenses for airline travel, lodging,
meals, and ground transportation provided to a nurse or
certified nurse aide. "Long-term basis" does not include the
placement of a nurse or a certified nurse aide at a health care
facility for an initial employment, assignment, or referral
term of an undefined duration.
    "Nurse" means a registered nurse, a licensed practical
nurse, an advanced practice registered nurse, or any
individual licensed under the Nurse Practice Act.
    "Nurse agency" means any individual, firm, corporation,
partnership, or other legal entity that employs, assigns, or
refers nurses or certified nurse aides to a health care
facility for a fee. The term "nurse agency" includes nurses
registries. The term "nurse agency" does not include services
provided by home health agencies licensed and operated under
the Home Health, Home Services, and Home Nursing Agency
Licensing Act or a licensed or certified individual who
provides his or her own services as a regular employee of a
health care facility, nor does it apply to a health care
facility's organizing nonsalaried employees to provide
services only in that facility.
    "Temporary basis" means an initial employment, assignment,
or referral term of an undefined duration or a duration of 24
continuous months or less exclusive of any extension.
(Source: P.A. 102-946, eff. 7-1-22.)
 
    (225 ILCS 510/13)  (from Ch. 111, par. 963)
    Sec. 13. Application for employment.
    (a) Every nurse agency shall cause each applicant for
employment, assignment, or referral, as a nurse to complete an
application form including the following information:
        (1) name and address of the applicant;
        (2) whether or not such applicant is a nurse currently
    licensed by the Department of Financial and Professional
    Regulation;
        (3) if so licensed, the number and date of such
    license; and
        (4) references and dates and places of previous
    employment.
    Prior to employing, assigning, or referring a nurse, the
agency shall contact the Department of Financial and
Professional Regulation to determine whether the nurse's
license is valid and in good standing. Written verification
shall be sent by the Department of Financial and Professional
Regulation within 20 working days. At least biennially
thereafter, the nurse agency shall contact the Department of
Financial and Professional Regulation to verify this
information in writing. The nurse agency shall review the
disciplinary report published by the Department of Financial
and Professional Regulation on a monthly basis to determine
whether the nurse's license is valid and in good standing.
    (b) Every nurse agency shall cause each applicant for
employment, assignment, or referral, as a certified nurse aide
to complete an application form including the following
information:
        (1) name and address of the applicant;
        (2) whether or not the nurse aide is registered as
    having completed a certified course as approved by the
    Department of Public Health; and
        (3) references and dates and places of previous
    employment.
    Prior to employing, assigning, or referring a certified
nurse aide, the agency shall review the information provided
on the Health Care Worker Registry to verify that the
certification is valid. Prior to employing, assigning, or
referring a certified nurse aide to a position at a health care
employer or long-term facility as defined in the Health Care
Worker Background Check Act, the nurse agency shall review the
information provided on the Health Care Worker Registry to
verify that the certified nurse aide is not ineligible for the
position pursuant to Section 25 of the Health Care Worker
Background Check Act.
    (c) Every nurse agency shall check at least 2 recent
references and the dates of employment provided by the
applicant, unless the applicant has not had 2 previous
employers.
    (d) Knowingly employing, assigning, or referring to a
health care facility a nurse or certified nurse aide with an
illegally or fraudulently obtained or issued diploma,
registration, license, certificate, or background study
constitutes negligent hiring by a nurse agency and is a
violation of this Act.
    (e) Nurses or certified nurses aides employed, assigned,
or referred to a health care facility by a nurse agency shall
be deemed to be employees of the nurse agency while working for
the nurse agency or on nurse agency employment, assignment, or
referral and may only be terminated by the nurse agency for
cause.
(Source: P.A. 102-946, eff. 7-1-22; revised 8-22-22.)
 
    (225 ILCS 510/14)  (from Ch. 111, par. 964)
    Sec. 14. Minimum Standards.
    (a) The Department, by rule, shall establish minimum
standards for the operation of nurse agencies. Those standards
shall include, but are not limited to:
        (1) the maintenance of written policies and
    procedures;
        (2) the maintenance and submission to the Department
    of copies of all contracts between the nurse agency and
    health care facility to which it assigns or refers nurses
    or certified nurse aides and copies of all invoices to
    health care facilities personnel. Executed contracts must
    be sent to the Department within 5 business days of their
    effective date; and
        (3) the development of personnel policies for nurses
    or certified nurse aides employed, assigned, or referred
    to health care facilities, including a personal interview,
    a reference check, an annual evaluation of each employee
    (which may be based in part upon information provided by
    health care facilities utilizing nurse agency personnel),
    and periodic health examinations. Executed contracts must
    be sent to the Department within 5 business days of their
    effective date and are not subject to disclosure under the
    Freedom of Information Act.
        No less than 100% of the nurse or certified nurse aide
    hourly rate shall be paid to the nurse or certified nurse
    aide employee.
    (b) Each nurse agency shall have a nurse serving as a
manager or supervisor of all nurses and certified nurses
aides.
    (c) Each nurse agency shall ensure that its employees meet
the minimum licensing, training, continuing education, and
orientation standards for which those employees are licensed
or certified.
    (d) A nurse agency shall not employ, assign, or refer for
use in an Illinois health care facility a nurse or certified
nurse aide unless certified or licensed under applicable
provisions of State and federal law or regulations. Each
certified nurse aide shall comply with all pertinent
regulations of the Illinois Department of Public Health
relating to the health and other qualifications of personnel
employed in health care facilities.
    (e) The Department may adopt rules to monitor the usage of
nurse agency services to determine their impact.
    (f) Nurse agencies are prohibited from recruiting
potential employees on the premises of a health care facility
or requiring, as a condition of employment, assignment, or
referral, that their employees recruit new employees for the
nurse agency from among the permanent employees of the health
care facility to which the nurse agency employees have been
employed, assigned, or referred, and the health care facility
to which such employees are employed, assigned, or referred is
prohibited from requiring, as a condition of employment, that
their employees recruit new employees from these nurse agency
employees. Violation of this provision is a business offense.
    (g) Nurse agencies are prohibited from entering into
covenants not to compete with nurses and certified nurse aides
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. A
covenant not to compete entered into on or after July 1, 2022
(the effective date of Public Act 102-946) this amendatory Act
of the 102nd General Assembly 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 is
illegal and void. In The nursing agency shall not, in any
contract on a temporary basis with any nurse, certified nurse
aide, employee or health care facility, a nurse agency is
prohibited from requiring require the payment of liquidated
damages, conversion fees, employment fees, buy-out fees,
placement fees, or other compensation if the nurse or
certified nurse aide employee is hired as a permanent employee
of a health care facility.
    (g-5) Beginning on the effective date of this amendatory
Act of the 102nd General Assembly 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 (i) the nurse is
employed, assigned, or referred by a nurse agency to a health
care facility on a long-term basis or (ii) the certified nurse
aide is employed, assigned, or referred by a nurse agency to a
health care facility on a long-term basis. However, 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. To be enforceable, the term of a covenant not
to compete entered into under this subsection must be
concurrent with the term of the initial employment,
assignment, or referral of the nurse or certified nurse aide
to a health care facility. 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 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.
    (h) A nurse agency shall submit a report quarterly to the
Department for each health care entity with whom the agency
contracts that includes all of the following by provider type
and county in which the work was performed:
        (1) A list of the average amount charged to the health
    care facility for each individual employee category.
        (2) A list of the average amount paid by the agency to
    employees in each individual employee category.
        (3) A list of the average amount of labor-related
    costs paid by the agency for each employee category,
    including payroll taxes, workers' compensation insurance,
    professional liability coverage, credentialing and
    testing, and other employee related costs.
    The Department shall publish by county in which the work
was performed the average amount charged to the health care
facilities by nurse agencies for each individual worker
category and the average amount paid by the agency to each
individual worker category.
    (i) The Department shall publish on its website the
reports yearly by county.
    (j) The Department of Labor shall compel production of the
maintained records, as required under this Section, by the
nurse agencies.
(Source: P.A. 102-946, eff. 7-1-22.)
 
    (225 ILCS 510/14.3)
    Sec. 14.3. Contracts between nurse agencies and health
care facilities.
    (a) A contract entered into on or after the effective date
of this amendatory Act of the 102nd General Assembly between
the nurse agency and health care facility must contain the
following provisions:
        (1) A full disclosure of charges and compensation. The
    disclosure shall include a schedule of all hourly bill
    rates per category of employee, a full description of
    administrative charges, and a schedule of rates of all
    compensation per category of employee, including, but not
    limited to, hourly regular pay rate, shift differential,
    weekend differential, hazard pay, charge nurse add-on,
    overtime, holiday pay, and travel or mileage pay.
        (2) A commitment that nurses or certified nurse aides
    employed, assigned, or referred to a health care facility
    by the nurse agency perform any and all duties called for
    within the full scope of practice for which the nurse or
    certified nurse aide is licensed or certified.
        (3) No less than 100% of the nurse or certified nurse
    aide hourly rate shall be paid to the nurse or certified
    nurse aide employee.
    (b) A party's failure to comply with the requirements of
subsection (a) shall be a defense to the enforcement of a
contract between a nurse agency and a health care facility.
Any health care facility or nurse agency aggrieved by a
violation of subsection (a) shall have a right of action in a
State court against the offending party. A prevailing party
may recover for each violation:
        (1) liquidated damages of $1,500 or actual damages,
    whichever is greater;
        (2) reasonable attorney's fees and costs, including
    expert witness fees and other litigation expenses; and
        (3) other relief, including an injunction, as the
    court may deem appropriate.
    (c) This Section does 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.
(Source: P.A. 102-946, eff. 7-1-22.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.