KRS 216.724: Restrictions on health care services agency -- Contracts.

(1) A health care services agency shall not:

(a) Restrict in any manner the employment opportunities of any temporary direct

care staff that is contracted with or employed by the agenc y, including but not

limited to contract buy-out provisions or contract non-compete clauses;

(b) Require, in any contract with temporary direct care staff, an assisted living

community, a long-term care facility, or a hospital, the payment of liquidated

damages, employment fees, or other compensation should the employee be

hired as a permanent employee of the assisted living community, long -term

care facility, or hospital, except in cases where the damages, fees, or

compensation are payable solely by the as sisted living community, long -term

care facility, or hospital and the contract with the assisted living community,

long-term care facility, or hospital specifies that the amount will be reduced

pro-rata based on the length of time the temporary direct care staff performs

services for the assisted living community, long -term care facility, or hospital

while on the payroll of the health care services agency; or

(c) Solicit or recruit the current staff of an assisted living community, long -term

care facility, or hospital, or require, as a condition of employment,

assignment, or referral, that their employees recruit new employees for the

agency from among the current employees of the assisted living community,

long-term care facility, or hospital to which the a gency employees are

employed, assigned, or referred.

(2) Any contract between a health care services agency and temporary direct care staff

that does not comply with subsection (1) of this section shall be considered an

unfair trade practice and be void pursuant to KRS 365.060.

(3) The provisions of subsection (1) of this section shall not apply to contracts with

permanent direct care staff or with an assisted living community, a long -term care

facility, or a hospital for the placement of permanent direct care staff.