A federal judge has dismissed a lawsuit from Minnesota nursing home industry groups which sought to block a new holiday pay rule for nursing home staff.
It was a challenge to the state’s new Nursing Home Workforce Standards Board, a group tasked with setting labor policies for the industry. It was created by the state Legislature in 2023.
The board implemented a new rule this year mandating time-and-a-half pay for working 11 state holidays.
Two nursing home associations — LeadingAge Minnesota and Care Providers of Minnesota — sued the state’s Department of Labor and Industry and the standards board to block the rule. They argued it violated federal labor law by intervening in workers’ collective bargaining process.
The lawsuit also noted that the rule could be costly. The industry groups said some nursing homes would be paying hundreds of thousands of dollars more per year to comply with the rule.
A judge ruled last week that the rule does not violate federal law.
“The rule is more akin to a minimum labor standard than an impermissible overreach into the bargaining process,” wrote District Court Judge Laura Provinzino in her dismissal.
Nursing home workers called it a win, and said better pay will help retain staff amid a worker shortage in the industry.
“Workers need more support so we can do our jobs to make sure residents have the support they need,” said nursing home worker Teresa Brees in a statement.
Department of Labor and Industry Commissioner Nicole Blissenbach, who was also named as a defendant in the lawsuit, said the department will continue implementing the board’s rules for new standards, including the holiday pay rule.
A spokesperson for the two industry groups said the judge’s dismissal poses a challenge.
“We are obviously disappointed with the judge’s ruling, and continue to believe that the Nursing Home Workforce Standards Board’s Holiday Pay Rule violates federal law,” the organizations said in a statement.
The groups said they’re evaluating their legal options, including appealing the decision.
