St. Paul, Minnesota — Thousands of nursing home workers across Minnesota started earning higher wages this week under new state-mandated minimums that took effect September 10, marking the culmination of a years-long push by labor advocates to boost pay in one of the lowest-wage corners of healthcare.
The new wage floors set by the Minnesota Nursing Home Workforce Standards Board establish four separate minimums based on role: $22.50 per hour for certified nursing assistants, $23.50 for trained medication aides, $27 for licensed practical nurses, and $19 for all other nursing home workers. The rates will climb another $1.50 per hour across all categories on January 1, 2027.
How the New System Works
The wage standards are the result of legislation passed in 2023 that created a nine-member board with equal representation from workers, nursing home operators, and state officials. The board approved the new minimums in April 2024, though industry representatives abstained from the vote.
Federal approval from the Centers for Medicare and Medicaid Services came in August, clearing the way for implementation. The state has already appropriated $37 million to help facilities cover the cost increases, with the federal government contributing a comparable amount through Medicaid matching funds.
The Workforce Challenge
Nursing homes have long struggled with turnover and staffing shortages, with many workers leaving for retail and fast-food jobs that pay competitive wages without the physical and emotional demands of direct care. Industry reports show that workforce pressures facing operators have intensified in recent years as demand for long-term care grows.
Labor advocates argue the raises are essential to stabilize the workforce. “These workers are a lifeline to our elders and most vulnerable residents, and they deserve financial peace of mind so they can provide the best care possible,” said Dr. Rasha Ahmad Sharif, executive vice president of SEIU Healthcare Minnesota and Iowa, in a statement.
Industry Concerns
Not everyone is celebrating. Nursing home industry groups, represented by LeadingAge Minnesota and Care Providers of Minnesota, have fought the wage mandates in court. They argue the unelected board has overstepped its authority and that the mandated raises could force some facilities to close despite growing demand from Minnesota’s aging population.
A federal judge dismissed the industry’s challenge to the board’s holiday pay rules earlier this year, but the broader lawsuit seeking to dissolve the workforce standards board entirely remains active.
What Comes Next
For workers earning less than the new minimums, the raises represent roughly a $2-per-hour increase. The board also mandated time-and-a-half pay for 11 holidays, a benefit that took effect earlier this year.
Other states are watching Minnesota’s experiment closely. With workforce shortages affecting nursing homes nationwide, the debate over whether government-mandated wage floors can stabilize the sector without triggering closures is likely to intensify.
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