Purpose

This bill aims to fix pay for individual providers who were affected when the latest collective bargaining agreement’s wage provisions could not be implemented on January 1, 2026 because the necessary federal approval of state plan amendments was delayed. If federal approval later includes a retroactive rate increase, the bill makes the provisions of that bargaining agreement retroactive to the date of the retroactive increase. It also requires the state to ensure these providers receive back pay for the period between federal approval and the retroactive increase.

Main Provisions

• If the most recent collective bargaining agreement between SEIU Healthcare Minnesota and Iowa and the state of Minnesota had provisions not implemented by January 1, 2026 due to delayed federal approval of state plan amendments, and if federal approval includes a retroactive rate increase, those provisions become effective retroactively on the same date as the retroactive rate increase.
• The commissioner of human services must issue instructions to ensure wage remediation for all individual providers covered by the bargaining agreement as soon as possible after federal approval.
• All individual providers covered by the bargaining agreement must receive back pay for the period between federal approval and the effective date of the retroactive rate increase.

Significant Changes to Existing Law

• Adds a formal requirement for wage remediation for individual providers impacted by delayed federal approval of retroactive rate increases.
• Establishes back pay eligibility for the period between federal approval and the retroactive rate increase.

Implementation and Oversight

• The commissioner of human services (Department of Human Services) is responsible for issuing instructions and overseeing the wage remediation process.
• Remediation and back pay are contingent on federal approval that includes a retroactive rate increase and apply to the period between federal approval and the retroactive increase.

Rationale (in plain terms)

• The bill addresses a funding and wage gap caused by federal delays.
• It ensures workers who were ready to be paid under the new rates receive those wages retroactively and are compensated for the time they were waiting.

Relevant Terms - wage remediation - retroactive rate increase - federal approval - state plan amendments - collective bargaining agreement - SEIU Healthcare Minnesota - individual providers - back pay - commissioner of human services - January 1, 2026