HB 386-FN - AS INTRODUCED
2025 SESSION
25-0211
07/08
HOUSE BILL386-FN
AN ACTprohibiting nursing agencies from including non-compete clauses in contracts with health care entities.
SPONSORS:Rep. Preece, Hills. 17; Rep. Cornell, Hills. 22; Rep. Grote, Rock. 24
COMMITTEE:Labor, Industrial and Rehabilitative Services
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ANALYSIS
This bill prohibits nursing agencies from including non-compete clauses in contracts with health care entities.
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Explanation:Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
25-0211
07/08
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Five
AN ACTprohibiting nursing agencies from including non-compete clauses in contracts with health care entities.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Nurse Agency Registration; Definitions; Definitions Added. Amend RSA 326-M:1 to read as follows:
326-M:1 Definitions.
I. "Nurse agency" means any individual, firm, corporation, partnership or other legal entity that employs, assigns or refers nurses or licensed nursing assistants to a health care facility on a per diem or temporary basis for a fee. The term "nurse agency" includes an agency that employs, assigns, or refers such personnel through the use of apps or other technology based solutions or platforms. The term "nurse agency" shall not include services provided in a household setting by home health agencies licensed and operated under RSA 151:2-b, any entity wholly owned by a health care facility or facilities separately licensed under RSA 151, nor shall it include any individual offering only his or her services.
II. "Director" means the executive director of the office of professional licensure and certification.
III. "Health care facility" means any facility or organization, regardless of its primary purpose of business, that employs any nurses or licensed nursing assistants to care for the population it serves.
IV. "Nurse," "licensed nursing assistant" or "employee" means an individual licensed by the board of nursing to practice in this state.
2 Nurse Agency Registration; Contracts Between Nurse Agencies and Health Care Facilities. Amend RSA 326-M:3 to read as follows:
326-M:3 Contracts Between Nurse Agencies and Health Care Facilities.
I. Nurse agencies shall not:
[I. Nurse agencies shall not commit] (a) Commit the services of a single nurse or licensed nursing assistant to more than one health care facility for the same time period or shift and cancel a commitment to a facility, or compel that facility to bid again for services already promised it.
[II. Nurse agencies shall not recruit] (b) Recruit potential employees on the premises of a health care facility.
[III. Nurse agencies may not charge] (c) Charge a health care facility a higher amount based upon the presence in that facility of a communicable virus, except in the case of a state or local declaration of a public health emergency.
[IV. Nurse agencies may not facilitate] (d) Facilitate the placement of any licensed professional with a license that is suspended.
(e) Restrict the employment opportunities of nurses or licensed nursing assistants by including a non-compete clause or other restrictive covenant in any contract with an employee or health care facility.
(f) In any contract with an employee or health care facility, require payment of liquidated damages, employment fees, or other compensation if the employee is subsequently hired as a permanent employee of the health care facility within any time frame.
(1) This restriction shall not apply to a contract between a nursing agency and an employee if the contract meets all of the following criteria:
(A) The contract was entered into for the sole purpose of placing an employee, and the employment agency assisted in obtaining authorization to work in the United States.
(B) The contract contains an initial duration term of not less than 24 months and a total duration term, including any renewals or extensions, of not more than 36 months.
(C) The contract requires the employee to work for a single health care facility for the duration of the contract.
(2) Any contract that violates this subsection shall be unenforceable in any court or proceeding with respect to said restriction; provided, however, that nothing herein shall render void or unenforceable the remaining provision of any such contract or agreement.
II. The requirements of this section shall void said restrictions in existing contracts or agreements upon the effective date of this section and apply to new contracts or renewals of contracts or agreements entered into or after the effective date of this section.
3 Effective Date. This act shall take effect upon its passage.
LBA
25-0211
11/15/24
HB 386-FN- FISCAL NOTE
AS INTRODUCED
AN ACTrelative to prohibiting nursing agencies from including non-compete clauses in contracts with health care entities.
FISCAL IMPACT: This bill does not provide funding, nor does it authorize new positions.
Estimated State Impact
FY 2025 FY 2026 FY 2027 FY 2028
Revenue $0 Indeterminable Increase Indeterminable Increase Indeterminable Increase
Revenue Fund(s) General Fund
Expenditures* $0 Indeterminable Increase Indeterminable Increase Indeterminable Increase
Funding Source(s) General Fund
Appropriations* $0 $0 $0 $0
Funding Source(s) None
*Expenditure = Cost of bill *Appropriation = Authorized funding to cover cost of bill
Estimated State Impact
FY 2025
FY 2026
FY 2027
FY 2028
Revenue
$0
Indeterminable Increase
Indeterminable Increase
Indeterminable Increase
Revenue Fund(s)
General Fund
Expenditures*
$0
Indeterminable Increase
Indeterminable Increase
Indeterminable Increase
Funding Source(s)
General Fund
Appropriations*
$0
$0
$0
$0
Funding Source(s)
None
*Expenditure = Cost of bill *Appropriation = Authorized funding to cover cost of bill
METHODOLOGY:
This bill prohibits nursing agencies from including non-compete clauses in contracts with health
care entities. The bill provides that a contract that violates its provisions shall not be enforceable in any court proceeding. It is not possible to predict if there will be such contracts that violate the provisions of this bill or how many there may be. The Judicial Branch has provided the following average cost and fee information for routine and complex civil cases:
Judicial Branch Average Cost FY 2025 FY 2026
Superior Court Complex Civil Case $1,430 $1,473
Superior Court Routine Civil Case $535 $552
Judicial Branch Average Cost
FY 2025
FY 2026
Superior Court Complex Civil Case
$1,430
$1,473
Superior Court Routine Civil Case
$535
$552
Superior Court Fees As of 2/12/2020
Original Entry Fee $280
Third-Party Claim $280
Motion to Reopen $160
Superior Court
Fees
As of 2/12/2020
Original Entry Fee
$280
Third-Party Claim
$280
Motion to Reopen
$160
It is assumed that any fiscal impact would occur after June 30, 2025.
AGENCIES CONTACTED:
Judicial Branch