Minimum wage proposed for Minnesota's nursing home workers

Thousands of nursing home workers would get raises under a multimillion dollar plan to shore up staffing in Minnesota's elder-care facilities and maintain their quality of care.

The state's Nursing Home Workforce Standards Board voted Monday to set minimum wages for nursing home workers at $22 per hour by 2026, on average, and $23.49 by 2027. The Legislature created the board last year and charged it to find the current midpoint in nursing home wages and set that as the floor — such that half the state's nursing home workforce would get a boost.

Nursing home workers have demanded better pay so they can afford to stay in their jobs and continue to care for residents, said Nicole Blissenbach, commissioner of the Minnesota Department of Labor and Industry and a member of the standards board. "They've told us what they need to improve working conditions in this essential industry."

Nursing home owners opposed the minimum wages unless they were offset by increases in state tax dollars. The board's plan requires legislative approval to increase payment rates from the state's Medical Assistance program for nursing home care — at a cost to Minnesota of $2.2 million in 2028 and $6.9 million in 2029. Minnesota law requires rate equalization for nursing homes, meaning that the increased rates would apply to private payers as well.

The state proposal comes as nursing homes also face new federal staffing requirements, including the presence of higher-cost registered nurses.

Three industry-selected members of the state board abstained Monday. Paula Rocheleau, chief executive of Partners Senior Living Options in Pierz, Minn., said her lack of a vote was based on the plan's increase in mandated holidays, which would increase costs and staffing headaches.

"It does affect the bottom line and it could affect the operations [of nursing homes]

and resident care," she said.

Leaders of the SEIU Healthcare union chapter for Minnesota lauded the plan, having lobbied for the creation of the standards board to increase worker pay and address statewide staffing shortages. The union orchestrated a one-day strike at 12 nursing homes last month to draw attention to the problem. An analysis of federal data by Seniorly, an online search engine for senior living options, found that 41% of Minnesota's long-term care facilities had staffing shortages — the highest rate in the nation.

Food service worker T.J. Hart said too many of his senior living coworkers face the "heartbreaking dilemma" of leaving nursing homes and residents.

"Higher pay and better benefits will ... attract new talent and caring employees to the industry," he added.

The impact of the proposed pay levels would vary by profession. Most licensed practical nurses in nursing homes already make more than the $28.50 minimum that would be set by 2027. A new minimum of $24 for certified nursing assistants would have a broader impact. The shortage of these assistants was so great during the COVID-19 pandemic that Minnesota offered free college training to entice more people to the profession.