Purpose

• Establishes wage remediation for specific workers when parts of their most recent collective bargaining agreement (CBA) were not implemented on January 1, 2026 due to the lack of federal approval of related state plan amendments.
• If the federal approval includes a retroactive rate increase, the relevant CBA provisions become effective retroactively to the date of that retroactive increase.

Main Provisions

• Wage remediation requirement: For provisions in the most recent CBA between SEIU Healthcare Minnesota (and Iowa) and the State of Minnesota that were not implemented by January 1, 2026 because federal approval for the necessary state plan amendments was missing, those provisions must take effect retroactively once federal approval is granted and includes a retroactive rate increase.
• Retroactive effectiveness: The provisions of the most recent CBA are considered effective retroactively from the same date as the retroactive rate increase approved by the federal government.
• Implementation guidance: The commissioner of human services must issue instructions to ensure wage remediation for all individual providers covered by the CBA as soon as possible after federal approval.
• Back pay requirement: All individual providers covered by the CBA must receive back pay for the period between the date of federal approval and the effective date of the retroactive rate increase.

Implementation and Oversight

• Responsible party: The commissioner of human services is tasked with issuing instructions and overseeing the wage remediation process.
• Scope: Applies to individual providers covered by the CBA between SEIU Healthcare Minnesota (and Iowa) and the State of Minnesota.

Significance and Expected Impact

• Aligns wages with retroactive rate increases once federal approval is granted, ensuring workers receive compensation for the period of delayed implementation.
• Creates a defined pathway and timeline for back pay once federal approval is obtained, reducing ambiguity about retroactive payments.

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