What your agency or 1099 status changes, who your employer is when an agency places you, and where noncompetes stand.
Every rule here was read on the statute, regulation or agency page it cites. Checked November 10, 2026.
General information, not legal advice. Laws change and your facts decide how they apply. Before you act, confirm with the agency listed here or with an employment lawyer or your union representative.
Employee, contractor or agency staff
Federal law, every state
When an agency places you at a hospital, both can be your employers, and the agency is usually the primary employer for FMLA leave, notices and keeping your health benefits going.
Who it covers: Agency and travel staff placed at a client facility.
"For employees of temporary placement agencies, for example, the placement agency most commonly would be the primary employer."
Being called a contractor does not decide whether you are one. Under federal wage law the question is the economic reality: are you in business for yourself, or economically dependent on the company for work?
Who it covers: Clinicians paid as independent contractors.
"Labeling employees as "independent contractors" does not make these protections inapplicable."
The 2024 DOL rule (29 CFR part 795) is still in effect, and DOL says it still applies in private FLSA lawsuits. Since May 1, 2025, the Wage and Hour Division no longer applies it in its own investigations (Field Assistance Bulletin 2025-1).
Who it covers: Clinicians paid as independent contractors.
"WHD will no longer apply the 2024 Rule's analysis when determining employee versus independent contractor status in FLSA investigations."
In February 2026 DOL proposed rescinding the 2024 rule and replacing it with a new economic-reality analysis. That proposal is not final; comments closed April 28, 2026.
Who it covers: Clinicians paid as independent contractors.
"the Department proposed to rescind a 2024 rule on that topic which it is no longer applying in its investigations"
For taxes, the IRS weighs three kinds of facts: behavioral control (who directs how you do the work), financial control (how you are paid, who covers expenses and supplies), and the type of relationship (contracts, benefits, permanence).
Who it covers: Anyone paid on a 1099.
"Does the company control or have the right to control what the worker does and how the worker does his or her job?"
There is no federal ban on noncompetes. The 2024 FTC rule was blocked in court, the FTC moved to drop its appeal in September 2025, and the FTC published the rule's removal in February 2026. Whether a noncompete in your contract holds up depends on state law.
Who it covers: All workers.
"The Noncompete Rule is not in effect and it is not enforceable."
An honest employer does not charge you to get a job, and honest staffing and placement firms do not typically charge candidates a fee: the hiring company pays them. If a placement firm asks you for a fee, especially in advance, the FTC says walk away.
Who it covers: Anyone looking for work.
Limits and exceptions to know (the law may have others; read the source):
Honest placement firms do not typically charge job candidates; the hiring company pays them. (FTC, Job Scams)
"Honest employers, including the federal government, will never ask you to pay to get a job."
If a new "employer" sends a check and asks you to send part of it back or buy gift cards with it, it is a fake-check scam. The check bounces later and the bank will want the full amount back from you.
Who it covers: Anyone looking for work.
"No honest potential employer will ever send you a check to deposit and then tell you to send on part of the money, or buy gift cards with it."
Report a job scam to the FTC at ReportFraud.ftc.gov, and to your state attorney general. Online fraud can also be reported to the FBI's Internet Crime Complaint Center (IC3).
Who it covers: Anyone who sees or loses money to a job scam.
Limits and exceptions to know (the law may have others; read the source):
Before you sign, get guaranteed hours, cancellation terms, any rate-change clause and any repayment or "stay-or-pay" clause in writing. Ask what happens to housing and stipends if the facility cancels.
Know who your employer of record is. That is usually who handles leave, injury reporting and your W-2.
Read a noncompete or repayment clause before you sign, and ask for it to be removed if you do not accept it. Whether it is enforceable depends on your state.