Illinois Compiled Statutes
Chapter 225 - PROFESSIONS, OCCUPATIONS, AND BUSINESS OPERATIONS
225 ILCS 510/ - Nurse Agency Licensing Act.

(225 ILCS 510/1) (from Ch. 111, par. 951)
Sec. 1.
Short title.
This Act may be cited as
the Nurse Agency Licensing Act.

(Source: P.A. 86-817; 86-1475.)
 
(225 ILCS 510/2) (from Ch. 111, par. 952)
Sec. 2.

The General Assembly intends to protect the public's right to
high quality health care by assuring that nurse agencies employ, assign
and refer licensed and certified personnel
to health care facilities.

(Source: P.A. 86-817.)
 
(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:
"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 nursing agency which is properly licensed under
this Act.
"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.

(Source: P.A. 102-946, eff. 7-1-22.)
 
(225 ILCS 510/4) (from Ch. 111, par. 954)
Sec. 4. Licensing. The Department shall license nurse agencies in
accordance with this Act for the protection of the health, welfare and
safety of patients and residents. No person may establish, operate,
maintain, or advertise as a nurse agency in the State of Illinois unless the
person is licensed under this Act by the Department of Labor. Being licensed
under the Home
Health, Home Services, and Home Nursing Agency Licensing Act does not relieve home health agencies that provide
nurse agency services from the requirement of obtaining licensure under this
Act. No health care facility shall use the services of an unlicensed nurse
agency.

(Source: P.A. 94-379, eff. 1-1-06.)
 
(225 ILCS 510/5) (from Ch. 111, par. 955)
Sec. 5. Application for license. An application to operate a nurse
agency shall be made to the Department on forms provided by the Department.
A separate application shall be submitted for each additional location
from which a nurse agency is operated. All applications must be under
oath and must be accompanied by an equitable application fee which will be
set by the Department by rule. A separate license must be obtained for each
location from which a nurse agency is operated unless the nurse agency is
owned and managed by the same person or persons. Submission of false or
misleading information is a petty offense punishable by a fine of $500.
The application shall contain the following information:
(Source: P.A. 102-946, eff. 7-1-22.)
 
(225 ILCS 510/6) (from Ch. 111, par. 956)
Sec. 6.
Issuance of license.
Upon receipt and after review of an
application for a license under this Act, the Director shall issue a
license if it is determined that the applicant is qualified to operate a
nurse agency, based upon demonstrated compliance with Section 5 of this
Act. A license issued by the Department in accordance with this
Section shall remain effective for a period of one year unless the license
is revoked or suspended pursuant to Section 9 of this Act. When a nurse
agency is sold or ownership
is transferred, the transferee
shall notify the Department and apply for a new license at least 45 days
prior to the transfer. The transferor shall remain responsible for the
operation of the agency until such time as a license is issued to the
transferee.

(Source: P.A. 86-817.)
 
(225 ILCS 510/7) (from Ch. 111, par. 957)
Sec. 7. Renewal of license. At least 90 days prior to license
expiration, the licensee shall submit an attestation detailing the number of contracted shifts, number of shifts missed, number of shifts fulfilled for the 3 quarters preceding the application date, and an application which meets the
requirements of Section 5 of this Act for renewal of the license. If the
application is approved pursuant to Section 6, the license shall be renewed
for an additional one-year period.

(Source: P.A. 102-946, eff. 7-1-22.)
 
(225 ILCS 510/8) (from Ch. 111, par. 958)
Sec. 8.
Grounds for denial of a license.
An application for a
license may be denied for any of the following reasons:
(a) failure to comply with the minimum standards set forth by this Act or its rules;
(b) conviction of the applicant of a felony;
(c) insufficient financial or other resources to operate the nurse
agency in accordance with the requirements of this Act and the minimum
standards, rules and regulations promulgated thereunder; or
(d) failure to establish appropriate personnel policies and procedures
for selecting nurses and
certified nurse aides for employment, assignment or referral.

(Source: P.A. 86-817.)
 
(225 ILCS 510/9) (from Ch. 111, par. 959)
Sec. 9.

Suspension, revocation, or refusal to issue or
renew a license. The Department may, after appropriate notice and hearing,
suspend, revoke, or
refuse to issue or renew any license if the licensee or applicant fails
to comply with this Act or the rules and regulations promulgated by the
Department under this Act.

(Source: P.A. 88-230.)
 
(225 ILCS 510/10) (from Ch. 111, par. 960)
Sec. 10.
Illinois Administrative Procedure Act.
The Illinois
Administrative Procedure Act, including the contested case provisions and
the requirements of Section 10-65 of that Act, shall apply to this Act.

(Source: P.A. 88-45.)
 
(225 ILCS 510/11) (from Ch. 111, par. 961)
Sec. 11.
Review under the Administrative Review Law.
All final
administrative decisions of the Department under this Act are subject to
judicial review under the Administrative Review Law, as now or hereafter
amended, and its rules. Administrative decision is defined as in Section
3-101 of the Code of Civil Procedure, as now or hereafter amended.

(Source: P.A. 86-817.)
 
(225 ILCS 510/12) (from Ch. 111, par. 962)
Sec. 12.
Liability of nurse agencies.
Health care facilities are
responsible for supervising nurse agency employees assigned or referred to
the facilities; however, where a health care facility is found liable for
an injury to a patient or resident because of a negligent act performed by
a nurse or certified nurse aide employed, assigned or referred by the nurse
agency, the health care facility has a right to be compensated by the nurse
agency for any and all expenses incurred related to any liability for the
nurse agency's negligent hiring. Negligent hiring by a nurse agency shall
be the failure of an agency to follow the procedures outlined in Section 13
of this Act. This provision shall not otherwise limit in any way the
actions a health care facility may have against a nurse agency at law or
in equity.

(Source: P.A. 86-817; 86-1043.)
 
(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:
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:
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.

(Source: P.A. 102-946, eff. 7-1-22.)
 
(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:
(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. A covenant not to compete entered into on or after the effective date of this amendatory Act of the 102nd General Assembly between a nurse agency and a nurse or certified nurse aide is illegal and void. The nursing agency shall not, in any contract with any employee or health care facility, require the payment of liquidated damages, conversion fees, employment fees, buy-out fees, placement fees, or other compensation if the employee is hired as a permanent employee of a health care facility.
(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:
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 510/14.1)
Sec. 14.1. Investigations; orders; civil penalties.
(a) The Department may at any time, and shall upon receiving a complaint
from any interested person, investigate any person licensed or applying for a
license under this Act suspected of violating any provision of any Section except Section 14.3. The Department shall investigate any person who
operates or advertises a nurse agency without being licensed under this Act. The Department shall establish a system of reporting complaints against a health care staffing agency. The Department shall publish on its website how an interested party may submit a complaint of a violation of this Act to the Department. Complaints may be made by an interested party. Complaints against a nurse agency shall be investigated by the Department of Labor. The investigations shall take into consideration the responsibility of health care facilities under Section 12 for supervising nurse agency employees assigned or referred to the facilities. For purposes of this Section, "interested party" means a health care facility, nurse staffing agency, or an employee of a health care facility or nurse staffing agency.
The Director or his or her authorized representative may examine the premises
of any nurse agency, may compel by subpoena,
for examination or inspection, the attendance and testimony of witnesses and
the production of books, payrolls, records, papers and other evidence in any
investigation or hearing, and may administer oaths or affirmations to
witnesses.
(b) After appropriate notice and hearing, and if supported by the evidence,
the Department may issue and cause to be served on any person an order to cease
and desist from violation of this Act and to take any further action that is
reasonable to eliminate the effect of the violation of any Section except Section 14.3.
Whenever it appears that any person has violated a valid order of the
Department issued under this Act, the Director may commence an action and
obtain from the court an order directing the person to obey the order of the
Department or be subject to punishment for contempt of court.
The Department may petition the court for an order enjoining any
violation of any Section of this Act except Section 14.3.
(c) Any licensee or applicant who violates any provision of this Act or the
rules adopted under this Act shall be subject to a civil penalty of $10,000 per occurrence payable to the Department for the purpose of enforcing this Act. Civil penalties may be assessed by the Department in
an administrative action and may, if necessary, be recovered in a civil action
brought by the Director through the Attorney General of the State of Illinois
or the State's attorney of any county in which the violation occurred. The
court may order that the civil penalties assessed for violation
of this Act, together with any costs or attorney's fees arising out of the
action to collect the penalties, be paid to the Department. The fact that the
violation has ceased does not excuse any person from liability for civil
penalties arising from the violation.
(d) Any nurse staffing agency that has been found not to have paid an employee 100% of the hourly wage rate identified in the contract between such nurse staffing agency and health care facility shall be liable to the employee for the actual amount of the underpayment, plus damages of 5% of the amount of the underpayment.
(Source: P.A. 102-946, eff. 7-1-22.)
 
(225 ILCS 510/14.2)
Sec. 14.2.
Criminal penalties; report of violation.
(a) Any person who wilfully violates any provision of this Act, or any
rule adopted or order issued under this Act, or who obstructs the Department,
its inspectors or agents, from investigating any alleged violation of this Act
or of any rule adopted or order issued under this Act, commits a Class A
misdemeanor. Each day a violation of this Act continues shall
constitute a separate and distinct offense.
(b) Whenever, in the opinion of the Department, a violation of this Act or
of the rules adopted under this Act has occurred, the Department shall report
the violation to the Attorney General of the State of Illinois or the State's
Attorney of the county in which the violation occurred.

(Source: P.A. 88-230.)
 
(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:
(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:
(Source: P.A. 102-946, eff. 7-1-22.)
 
(225 ILCS 510/15) (from Ch. 111, par. 965)
Sec. 15.
Rulemaking.
The Department shall adopt rules pursuant to
the Illinois Administrative Procedure Act to implement this Act.

(Source: P.A. 86-817.)

Structure Illinois Compiled Statutes