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Judge dismisses lawsuit challenging state-mandated holiday pay for nursing home workers • Minnesota Reformer [1]
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Date: 2025-05
In a victory for Minnesota’s new Nursing Home Workforce Standards Board, a federal judge dismissed a lawsuit brought by two industry groups challenging the board’s authority to mandate that nursing homes pay workers time-and-a-half on 11 holidays.
The lawsuit was the first legal challenge to the board since the Legislature created it in 2023 to set minimum pay and working standards for nursing home workers across the state.
The board — comprising three worker representatives, three state government officials and three industry leaders — voted last year to guarantee workers 11 paid holidays starting this year, as well as minimum wages starting Jan. 1. The three nursing home representatives abstained from voting for or against the minimum wage and holiday rules.
The nursing home associations — LeadingAge Minnesota and Care Providers of Minnesota — argued in their lawsuit that the holiday pay rule is illegal because it forces nursing homes to violate workers’ rights to collectively bargain under the National Labor Relations Act.
The argument was curious coming from associations representing employers. Federal District Court Judge Laura Provinzino wrote in her opinion on Friday that it wasn’t even clear that the two associations could assert rights on behalf of employees when they represent the employers.
Moreover, SEIU Healthcare Minnesota & Iowa, a union representing thousands of nursing home workers, fully supported the board’s rules. The union was a driving force behind the board’s creation in order to raise standards for union and non-union workers alike, and its president, Jamie Gulley, serves on the board.
LeadingAge and Care Providers also argued that the holiday pay mandate hurt nursing homes by costing them hundreds of thousands of dollars a year in some cases.
“The fact that the industry had money to fund this failed lawsuit but continues to tell their workers ‘no’ so often when they ask for better pay and benefits showcases how much change is still needed,” Rasha Ahmad Sharif, executive vice president of SEIU Healthcare Minnesota & Iowa, said in a statement celebrating the judge’s decision.
The associations’ arguments centered on a provision in the rule that allows nursing homes to swap out four of the holidays specified in the rule for alternative dates if approved by the majority of employees.
The nursing home groups argued this violated employees rights by forcing them to engage in collective bargaining and because the process would allow nursing home managers to “dominate” the voting process.
The judge rejected those arguments, ruling that voting on paid holidays doesn’t constitute collective bargaining.
“The rule does nothing more than create a new minimum labor standard,” the judge wrote.
In a statement, the groups said they were disappointed in the judge’s ruling and considering an appeal.
“This ruling creates even more regulatory challenges for Minnesota’s senior care centers at a time when the need for our services is growing,” the statement said.
The minimum wages set by the Nursing Home Workforce Standards Board are on track to take effect next year, as the Legislature appears ready to approve additional funding to underwrite the raises. Republicans have looked to eliminate the board and give nursing home leaders more power in setting rules, but those efforts failed to gain traction in the divided Legislature.
Labor leaders and their DFL allies sought to set up the board as a model for employer-worker relations in an industry that survives on government funding via Medicaid.
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