More oversight for healthcare staffing agencies under new PA law

On Behalf of | Nov 25, 2022 | Employment Law -- Employer |

Staffing companies provide a unique role in helping match employers with qualified candidates in a wide range of professions. However, staffing agencies also face unique liabilities when it comes to managing their responsibilities under state and federal labor laws.

That is especially true in healthcare, where temporary workers may provide essential services for needy elderly and disabled individuals. In 2022, Pennsylvania enacted a new law that puts extra scrutiny on agencies serving in the healthcare industry.

New requirements for oversight

Pennsylvania staffing agencies that provide temporary workers in the area of assisted living, nursing homes and personal home care face several new requirements. In addition to registering with the state, going forward such agencies must:

  • Carry medical malpractice insurance
  • Maintain workers’ compensation coverage for healthcare personnel
  • Validate the healthcare credentials of all contracted employees

Backers of the law hope that these new requirements will help agencies provide quality staffing services while also maintaining a level of public transparency.

Restrictions on non-compete clauses

The new law also prohibits agencies from using non-compete clauses in their contracts with workers. Architects of the bill argue that this will help ensure that vital healthcare workers, who are in short supply, do not face unreasonable obstacles to employment.

Finally, the new bill creates a system for agencies to register complaints about worker behavior. It also enables the state Department of Health to respond to violations with sanctions and other penalties. These new requirements make it crucial that staffing agencies active in the healthcare industry reexamine their processes for recruitment and contracting as well as their investment in appropriate insurance coverages.