Home Health & Hospice Week

Industry Notes:

State Outlaws Common Home Care Hiring Clause

If you rely on so-called “no hire” clauses to hold onto staff, a new requirement in one state could be a threat.

Connecticut Gov. Ned Lamont (D) recently signed into law the state’s fiscal year 2023 budget, which, “among other things … prohibits homemaker-companion or home health agencies from contractually preventing their clients from hiring agency employees,” notes attorney Yelena Greenberg with law firm Robinson & Cole in Boston. “The Act deems such ‘no-hire’ clauses as against public policy,” Greenberg notes in online legal analysis.

“Under the new statutes, a ‘no-hire clause’ is a contractual provision that imposes a financial penalty, assesses any charges or fees, including legal fees, or contains any other language that supports a claim of breach of contract or for damages or injunctive relief against a client that hires an employee of a homemaker-companion or home health agency,” Greenberg says. The prohibition takes effect May 7.

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