Long-anticipated raises for thousands of Minnesota nursing home workers will be delayed because the Minnesota Department of Human Services failed to complete the necessary steps to receive approval and funding from the federal government.

Nursing home workers expected to see their pay increase around $2 per hour on average on Jan. 1, as approved by the state’s new Nursing Home Workforce Standards Board more than a year and a half ago.

The board, which was created in 2023 by the Democratic-controlled Legislature, voted in April 2024 to approve four hourly minimum wages to take effect 2026: $22.50 for certified nursing assistants; $23.50 for trained medication aides; $27 for licensed practical nurses; and $19 for all other nursing home workers. The board also voted to raise minimum hourly wages an additional $1.50 in 2027.

It’s not clear when workers will receive those raises but it will be at least three months.

“We weren’t fully aware of the state rule that required approval by Dec. 1 in order for the new wages to be enforceable,” said Kristy Graume, director of state government relations at DHS at a meeting of the board on Thursday. “We certainly share in your frustration and we apologize.”

DHS started the process of securing federal approval on Monday. The agency posted notice of the proposed changes to Medicaid reimbursement rates that will fund the raises, which starts a 30-day public comment period. After that, the agency can submit its request to the federal Centers for Medicare & Medicaid Services, which has at least 90 days to review the application. After federal approval, the higher reimbursement rates funding the raises can start 30 days later.

That means workers are looking at April at the soonest for raises to kick in.

Graume said federal officials assured her they don’t foresee any problems securing approval, although she acknowledged “anything is possible.”

DHS plans to pay nursing homes the higher reimbursement rate retroactive to Jan. 1. The Minnesota Legislature already appropriated an additional $37 million to fund the raises in its 2024 health and human services budget bill. If approved, the federal government will contribute a comparable amount.

Jamie Gulley, a board member representing workers and president of SEIU Healthcare Minnesota & Iowa, said he hopes nursing homes will then retroactively pay workers the higher rate, although it would be voluntary.

Gulley said during Thursday’s meeting that the Jan. 1 date was always a target, and their work has been delayed before.

“We’re doing a big complicated thing to improve the industry, raise wages, try to get some stability in the workforce,” Gulley said. “It’s regrettable, but some patience is in order.”

The board also mandated 11 paid holidays for nursing home workers which took effect this year and survived a legal challenge from the nursing home industry.