Nebraska Governor Jim Pillen signed legislation April 14 prohibiting noncompete agreements for healthcare staffing agencies and establishing new registration requirements for the industry.
The Health Care Staffing Agency Registration Act, known as LB921, requires healthcare staffing agencies to register with the Nebraska Department of Labor before supplying temporary workers to healthcare entities. The law takes effect July 1, 2027.
The legislation applies to traditional staffing firms and healthcare technology platforms or app-based marketplaces that allow workers to bid on or select open shifts posted by healthcare facilities.
Under the law, staffing agencies must ensure workers comply with federal and state licensing, certification, registration and healthcare requirements. Agencies also must document that healthcare workers meet minimum qualifications for assigned positions.
The law bars staffing agencies from enforcing noncompete agreements with workers or healthcare facilities. It also prohibits agencies from requiring liquidated damages, employment fees or other compensation when a worker is hired permanently by a healthcare entity, with limited exceptions tied to contracts reduced to zero after 720 hours of service or foreign worker arrangements lasting at least 24 months.
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