Paying Nursing Home Workers $22 an Hour
Minnesota’s Nursing Home Workforce Standards Board put a bill to a vote and subsequently approved to raise the minimum wage of nursing home workers to $22 an hour.
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According to the board’s plan, these employees would earn $22 an hour by 2026. By 2027, the average would shoot up to $23.49.
Getting Legislative Approval
While this board has approved this increase in minimum wage, the plan still needs legislative approval to be put into law.
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The state’s legislature must approve the plan, while also approving to increase the payment rates that Minnesota’s Medical Assistance program gives to nursing home care.
The Cost of a Higher Minimum Wage
If Minnesota’s policymakers approve this bill, then these increased payments from the Medical Assistance program for nursing home care in the state would end up costing Minnesota $2.2 million in 2028.
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In 2029, this cost would shoot up to about $6.9 million. According to Minnesota law, rate equalization for nursing homes would result in these increased rates also applying to private payers.
The Creation of the Board
Minnesota’s Nursing Home Workforce Standards Board was created just last year as the state worked to help the struggling nursing home industry.
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The board was tasked with finding solutions to these ever-present problems within the industry. One of its biggest tasks has been to find a solution to the wage problem within this sector of the workforce.
Fighting for Better Wages
Throughout Minnesota, nursing home employees have been fighting for better wages. Currently, many of these workers aren’t paid enough to live off of.
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As a result, they’ve had to leave their jobs and begin to work in a completely different industry that provides better pay and benefits. Many of these workers have wanted to stay working at nursing homes and taking care of their residents — they just couldn’t afford to.
Attracting More Employees
If this plan successfully goes through Minnesota’s legislature, more people could be attracted to work in the nursing home industry. T.J. Hart, a food service worker, has explained that his coworkers in the industry haven’t wanted to leave their jobs, calling it a “heartbreaking dilemma.”
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With higher pay, these workers could return to the industry. Hart said, “Higher pay and better benefits will… attract new talent and caring employees to the industry.”
Ongoing Staffing Shortages
Throughout the state, nursing homes have faced ongoing staffing shortage problems that have greatly harmed the entire industry.
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According to federal data compiled by Seniorly, about 41% of all long-term care facilities in Minnesota had staffing shortages. This is the highest seen in the entire United States.
Union Support
SEIU Healthcare’s union chapter has praised the standards board’s plan — the board which they once lobbied for the creation of — and has claimed that this positive change will bring more workers into the senior living care sector.
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The union has long pushed for better pay for nursing home employees, as well as a fix to these staffing shortages seen statewide.
An Employee Strike
Just last month, this union planned an employee strike for one day. This strike occurred at 12 nursing homes in Minnesota.
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According to the union chapter of SEIU Healthcare, this strike was conducted to shed some light on the many issues that nursing home employees face. Most notably, they wanted to bring attention to staffing shortages and the fight for higher pay.
Nursing Home Owners’ Response
Many owners of nursing homes have publicly opposed the standards board’s push for higher wages. These owners have stated that they will only agree with a rise in the minimum wage if they also see an increase in tax dollars from the state.
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Another issue has arisen with the board’s desire for workers to have more mandated holidays. According to detractors, all of this would end up increasing costs for owners, as well as lead to various staffing issues.
Nursing Home Issues Remain
However, it’s clear that the industry as a whole needs to change to solve these ongoing problems — and to bring more workers into the nursing homes around the state.
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The shortage of workers, particularly certified nursing assistants, got so bad during the COVID-19 pandemic that Minnesota ended up offering free college training to help solve this staffing shortage. Higher wages may also help these jobs seem more desirable to Minnesotans.