Federal Judge Dismisses Challenge to Minnesota Nursing Home Labor Standards Board
A federal judge on Monday dismissed a lawsuit from LeadingAge Minnesota and Care Providers of Minnesota seeking to dissolve the state's nursing home labor standards board, which sets minimum wages and employment standards for nursing home workers. The board, created by the Minnesota Legislature in 2023, comprises worker representatives, industry leaders, and state officials, and in 2024 voted to mandate minimum wages and 11 paid holidays over industry objections. New wage increases take effect in September. The nursing home associations signaled they will appeal, arguing the board structure is unconstitutional and violates federal labor and antitrust laws.
Minnesota nursing homes rely heavily on Medicaid funding to cover labor costs, and wage mandates set by the standards board will require corresponding increases in Medicaid reimbursement rates or force facilities to absorb higher operating expenses.
Long-Term Care · Finance
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