Lawmakers consider ban on nursing-agency non‑compete clauses after testimony from nurses, agencies and school nurses

The House Labor Committee heard extended testimony on HB 386, a bill that would bar nursing staffing agencies from placing non‑compete provisions in contracts with health care organizations and other facilities that use agency nurses. Sponsor Rep. David Priess, R–Manchester, told the committee the measure is intended to close a loophole agencies use to restrict nurses’ ability to accept direct-hire work at facilities where they have been assigned.

Supporters said the clauses are sometimes hidden in contracts between agencies and facilities, not in the nurse’s employment agreement, and that practice raises costs for public institutions while trapping nurses in agency assignments. “Nursing agencies bypass these laws by placing non‑compete articles in their contracts with organizations that provide staffing services,” Rep. David Priess said. He described local nursing homes that cannot afford agencies’ buyout fees when they want to hire long‑term staff they have been using.

Interim Healthcare owner Rick Peterson, who described his company as a local, 47‑year family business that staffs hospitals, nursing homes and schools, told the committee he supports most of the bill but…