This bill aims to prohibit nursing agencies from including non-compete clauses in contracts with health care entities, thereby enhancing employment opportunities for nurses and licensed nursing assistants. The bill introduces new definitions, such as "health care facility" and "employee," and clarifies that a "nurse agency" does not include home health agencies or entities wholly owned by health care facilities. It also specifies that nurse agencies cannot restrict employment opportunities through non-compete clauses or require liquidated damages if an employee is hired permanently by a health care facility.

Additionally, the bill outlines that any contract violating these provisions will be unenforceable in court, while existing contracts will be voided upon the effective date of the new law. The bill also includes specific criteria under which a contract between a nursing agency and an employee may still be valid, such as a minimum duration of 24 months and a requirement for the employee to work for a single health care facility. The act will take effect upon passage, and it is expected to have indeterminable fiscal impacts on state revenue and expenditures.

Statutes affected:
Introduced: 326-M:1, 326-M:3