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Staffing Agencies Barred from Charging Permanent Hire Fees Under New Law

Under legislation enacted as part of the State Fiscal Year (SFY) 2023-24 budget, temporary health care staffing agencies are now subject to registration, reporting, and minimum standards requirements. The requirements include a prohibition on employment fees or liquidated damages when a temporary worker is converted to a permanent hire. Although the legislation took effect on Aug. 1st, the Department of Health (DOH) has extended the deadline for registration until Nov. 15, 2023.

In addition to the ban on employment fees, the legislation includes minimum standards for contracts with staffing agencies, including provisions for licensure, training, and continuing education of temporary personnel; procedures to ensure prompt arrival and to address failures to report; maximum rates; and complaint procedures.

The law applies to "temporary health care staffing agencies" defined as entities in the business of providing or procuring temporary employment of certified nurse aides (CNAs) and direct care staff for health care entities, including a nurses’ registry licensed under the General Business Law and entities that procure temporary personnel using apps or technology-based solutions. It does not include an individual who only engages in providing the individual’s own services or a home care agency.

The law is available here, and a more complete summary of the law is available in the LeadingAge NY SFY 2023-24 budget summary on pp. 8-9.

Contact: Karen Lipson, klipson@leadingageny.org