Unprecedented minimum wages for thousands of nursing home workers in Minnesota are delayed again. Leah Solo, executive director of the state’s Nursing Home Workforce Standards Board, discussed the recent complications at a board meeting, stating that the Trump administration has reset its 90-day clock to review the impending wage floor.
Under state law, nursing facility employees are required to earn at least $19 per hour this year, increasing to $20.50 by 2027, with higher wages for licensed nursing staff. “I hate to bring bad news,” Solo remarked as the board grappled with the implications of the announcement.
This announcement marks the second significant delay regarding the wage floor, originally set to take effect on January 1. The first state-level board dedicated to workforce standards in nursing homes now faces a lawsuit from providers looking to dismantle it.
The wage floor requires backing from federal agencies like the Centers for Medicare and Medicaid Services (CMS), which will contribute $18 million to Minnesota’s Medicaid program to support the wage increases. Minnesota’s Department of Human Services also commits an additional $18 million to this initiative, but approval from CMS is now in jeopardy due to bureaucratic delays.
Recently, on day 89 of the review period, CMS requested further information from the state, effectively restarting the evaluation process. While CMS officials typically have a maximum of 90 days to assess funding requests, they often seek additional clarity, which can extend the timeline indefinitely.
Solo confirmed that the CMS request was sent not to the Nursing Home Workforce Standards Board, but to the Department of Human Services, resulting in confusion and uncertainty as to the specific information required. The department is currently working on a response as further developments unfold.
Previous delays had already arisen when the Department of Human Services was late in submitting necessary paperwork to CMS, which eventually triggered the initial review process.
The push for a wage floor specifically targeting nursing homes is considered a rejuvenation of historic standards reminiscent of the New Deal, reflecting ongoing efforts by labor unions in certain states to secure better wages in the healthcare sector.
Among the advocates for these increased wages are those who recognize Minnesota’s lengthy history of social programs aimed at providing comprehensive services to those at the end of life. However, the nursing home industry has opposed the establishment of this workforce board, going as far as filing a lawsuit against it, claiming it imposes irreparable harm on their operations.
A federal court hearing regarding the industry's request for an injunction against the board is set for next month, heightening tensions surrounding these wage increases as meetings continue to be consumed by discussions of ongoing litigation. Solo refrained from commenting on the lawsuit during the board's meeting.
This report was initially published by MinnPost and distributed in conjunction with The Associated Press.
