Hero Pay Legislation Advances in Tax Bill
Posted on June 30, 2021 by Kari Thurlow
A top legislative priority for LeadingAge Minnesota this year has been to secure hero pay bonuses to employees in senior care settings. Last week, legislative leaders announced an agreement to set aside some funding for hero pay bonuses. But until recently, we had few details. This weekend, lawmakers adopted an amendment that laid out a process to finalize hero pay bonuses this summer.
The House Ways and Means Committee amended the tax bill to establish a frontline worker pay working group. The legislation sets up a $250 million fund to provide direct financial support to frontline workers.
The nine-member group must recommend how the State should disburse available funds to frontline workers, including but not limited to long-term care workers. The members must consider factors including a frontline worker’s increased financial burden and increased risk of virus exposure due to the nature of their work. For the working group to adopt a recommendation, seven members must approve it, requiring bipartisan support. If the working group cannot approve a single recommendation, it may present up to three drafts of legislation with potential options for distribution. The legislature will approve the final distribution plan in September.
While funds will not reach our caregivers as quickly as we had hoped, we are grateful that long-term care is the only sector explicitly required to be included in the distribution of funds. We assume the House and Senate will take up the Tax bill for final votes on Wednesday. Once the bill is signed into law, the workgroup will be appointed by July 15.
We will be engaged in the process throughout the summer as we continue to advocate for bonuses for senior care workers.
For more information on Hero Pay legislation, we invite you to a legislative wrap-webinar on July 14 from 1–2:30 p.m. Plus, you’ll learn more about how you can get involved in advocacy throughout the rest of 2021. Register today!
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