Purpose

Explain and update how wages are calculated for people who work in family residential services in Minnesota. The bill reenacts and updates the framework used to set pay rates (the base wage index) for a wide range of staff, from supervisors to direct-care workers, by tying wages to standardized measures like median wages for specific job types (SOC codes). It also introduces special wage rules for overnight and night supervision staff and sets transition dates for when these wage rules take effect.

Main Provisions

• Reenacts base wage index calculations (Subd.5a) for family residential services.
  • Supervisory staff: 100% of the median wage for community and social services specialist (SOC code 211099), with an exception for certain supervisors (positive supports professionals, analysts, and specialists) who are set at 100% of the median wage for clinical counseling and school psychologist (SOC code 193031).
  • Registered nurses (RN): 100% of the median wage for RN (SOC code 291141).
  • Licensed practical nurses (LPN): 100% of the median wage for LPN (SOC code 292061).
  • Residential overnight staff: special rules apply, including a transition period and a separate minimum wage reference; for family residential services overnight staff, a minimum wage is set at 36% of Minnesota’s large-employer minimum wage.
  • Residential direct-care staff: wages computed as specified percentages of medians for various related roles (e.g., home health and personal care aides, nursing assistants, social and human services aides) with multiple percentage components and subtotal concepts.
  • Adult day services staff, day support services staff, prevocational services staff: wage calculations involve percentages of medians for nursing assistants, psychiatric technicians, social and human services aides, and related roles.
  • Positive supports staff: separate lines for analysts, professionals, and specialists with 100% of medians for corresponding relevant SOC codes (e.g., substance abuse and mental health counselors; clinical counseling and school psychologists; psychiatric technicians).
  • Individualized home supports with family training/training services: complex mix of percentages across multiple SOC codes, including community social service specialists, social and human services aides, nursing aides, and psychiatric technicians.
  • Employment-related services (support, exploration, development): wage shares include half-plus shares of medians for rehabilitation and guidance roles and for community/social services specialists.
  • Night-related supervision (awake and asleep) and night supervision staff: staged percentages of medians for home health and personal care aides, nursing assistants, psychiatric technicians, and social/human services aides, with January 1, 2026 or federal-approval timing for some categories and January 1, 2027 for others.
• Transitional and timing details.
  • Overnight staff (residential) have a transition rule: effective January 1, 2027 or upon federal approval, whichever is later, with family residential overnight staff receiving a special 36% of the state large-employer minimum wage.
  • Some provisions apply “until the effective date of clauses 18 and 19 and 20” indicating staged implementation across multiple subparts.
  • Overall, the bill’s changes are designed to align wage indices with standardized wage benchmarks (median wages by SOC code) and to adjust how and when these wage rules apply for different overnight and direct-care categories.

Significant Changes to Existing Law

• Reenacts and updates the base wage index calculations for a broad set of family residential services positions, replacing or updating prior language to specify exact percent-of-median wage formulas and specific SOC codes.
• Introduces explicit, role-specific wage rules tied to median wages for many positions (e.g., RN, LPN, community/social services specialists, nursing assistants, home health aides, social and human services aides, psychiatric technicians, etc.).
• Establishes a distinct, lower 36% of the minimum wage rate for family residential services overnight staff (as part of the overnight staffing framework), with the rest of overnight staff following the standard tiered median-based calculations.
• Adds staged implementation dates (e.g., January 1, 2026 and January 1, 2027 or upon federal approval) for various components of the wage index, signaling a phased rollout.
• Clarifies the scope to “re-enact” framework rates for family residential services, indicating continuation and adjustment of rates within the Minnesota statutes.

How It Affects Providers and Workers

• For workers, wages will be set using median-wage references tied to specific occupations, which can lead to higher or more standardized pay as those medians change.
• For overnight and night supervision staff, the bill creates separate wage pathways, including a special reduced rate for family residential overnight staff and staged dates for when higher wage levels apply.
• For employers/providers, the bill affects budgeting and reimbursements because wage indices determine funding levels for family residential services, with some roles pegged to medians and others to a fixed minimum (or a percentage of the minimum wage).

Timeline / Implementation

• Overnight residential staff: transition to the revised wage framework by January 1, 2027 or upon federal approval, whichever is later (with exceptions for family residential overnight staff at 36% of the minimum wage until the transition).
• Awake/asleep night supervision staff: staged implementation with dates around January 1, 2026 and January 1, 2027 or upon federal approval, depending on the specific subclass.
• Various other wage categories are tied to clauses that take effect on specified dates or upon federal approval, indicating a multi-year rollout.

Key Terms / Definitions

• base wage index
• Subd.5a (Subdivision 5a)
• Minnesota Statutes 2025 Supplement section 256B.4914
• SOC code (Standard Occupational Classification)
• median wage
• community and social services specialist (SOC code 211099)
• clinical counseling and school psychologist (SOC code 193031)
• registered nurse (RN) (SOC code 291141)
• licensed practical nurse (LPN) (SOC code 292061)
• home health and personal care aide (SOC code 311120)
• nursing assistant (SOC code 311131)
• social and human services aide (SOC code 211093)
• psychiatric technician (SOC code 292053)
• awake night supervision staff
• asleep night supervision staff
• residential asleep-over overnight staff
• family residential services
• large employers (as reference for minimum wage)
• minimum wage (Minnesota)

Relevant Terms base wage index, SOC code, median wage, Minnesota minimum wage, family residential services, overnight staff, awake night supervision, asleep night supervision, residential direct care, home health aide, nursing assistant, social and human services aide, clinical counseling, school psychologist, community and social services specialist, substance abuse counselor, psychiatric technician, employment support services, employment exploration services, employment development services, individual home supports, training services, time-based implementation dates.