On March 17, 2022, Iowa Governor Kim Reynolds signed into law House File 2521, “Relating to Health Care Employment Agencies, and Providing Penalties,” which will have its home in Chapter 135Q of the Iowa Code. In general, the law does three things. One, it requires health care employment agencies to annually register with the state Department of Inspections and Appeals (DIA) and pay a $500 registration fee. Two, it details recordkeeping and other requirements related to agency employees, and prohibits the inclusion of certain terms in contracts with health care entities. Three, it imposes penalties for non-compliance.

The law broadly defines a “health care employment agency” as “an agency that contracts with a health care entity in this state to provide agency workers for temporary, temporary-to-hire, direct hire, or other contract or employee placements.” Similarly, a “health care entity” is defined as “a licensed or certified facility, organization, or agency operated to provide services and supports to meet the health or personal care needs of consumers.”

Under the new law, health care employment agencies must do the following:

• Register each location of the health care employment agency on an annual basis with DIA, and pay a $500 registration fee;
• Ensure that agency workers comply with all applicable requirements relating to the health requirements and qualifications of personnel in health care entity settings (i.e. licensing, certification, training, and health...

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