An unprecedented increase in minimum wages for thousands of nursing home workers in Minnesota has been delayed again. Leah Solo, the executive director of the state’s Nursing Home Workforce Standards Board, explained during a recent board meeting that the Trump administration has reset its 90-day review clock for assessing the state’s proposed wage floor.
This wage floor, set by state law, mandates that nursing facility employees earn at least $19 per hour this year, moving up to $20.50 by 2027, with licensed nursing workers earning even more. Solo regrettably termed the news bad as board members faced uncertainty regarding the timeline and future developments of the wage increments.
This situation marks the second major delay to the wage floor, initially expected to be implemented on January 1. Complicating matters further, the Nursing Home Workforce Standards Board is currently embroiled in a lawsuit initiated by nursing homes seeking its dissolution.
The wage increase requires federal approval from the Centers for Medicare and Medicaid Services (CMS), which must review the state’s $18 million funding request to support the implementation. Likewise, the state contributes an additional $18 million towards this plan.
Notably, under federal Medicaid law, CMS has a maximum of 90 days to review the funding request. However, they are permitted to extend this timeline if additional information is requested from the state.
Solo reported that CMS had contacted the Minnesota Department of Human Services on day 89 of the review requesting further information, effectively resetting the evaluation period. The request was not directed to Solo or the board but rather the Department of Human Services, leading to communication challenges within state agencies regarding what specific information CMS requires.
The initial delay stemmed from the Department of Human Services' late submission of necessary documentation, which was eventually sent in January, initiating the 90-day review process. The state has a historical precedent in establishing generous end-of-life services, and the effort to set a wage floor for nursing home workers reflects ongoing initiatives led by labor unions in other blue states.
Minnesota stands out as the first state to address wage floors specifically within the nursing home sector. Yet, the nursing home industry has opposed the workforce board vehemently, with facilities filing a lawsuit claiming it causes irreparable harm to providers statewide. A federal court hearing regarding the industry's requests for an injunction against the board is scheduled for next month.
Despite the swirling controversies and legal challenges, the future of wage increases for Minnesota's nursing home workers remains uncertain.
