HB 23-1030

House Bill 23-1030, which has been signed into law and is now effective, stops health-care staffing agencies from charging nurses or hospitals fees if the hospital decides to hire a nurse directly as a permanent employee. This applies whether the decision happens before or after the initial contract period with the agency ends, except for a 30-day grace period when the nurse starts working at the facility. If an agency violates this rule and tries to collect such fees, hospitals and nurses can sue the agency for up to $5,000 in damages per violation and cover their legal costs. This law protects health-care workers and facilities from unfair financial penalties imposed by staffing agencies.

Official 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.)

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