This bill exempts assisted living service providers from the requirements related to direct care staff compensation. Under current Minnesota law (Minnesota Statutes 2024, section 256B.4914, subdivision 10d), providers receiving payment through specific state-determined rates must allocate a minimum percentage of their revenue to direct care staff compensation. These percentages vary depending on the applicable subdivision (ranging from 45% to 66%).

The bill adds a provision stating that these compensation requirements do not apply to providers licensed as assisted living facilities under chapter 144G of Minnesota statutes. Essentially, assisted living facilities would no longer be bound by the mandated minimum percentage they must allocate to direct care staff wages and benefits.

Compensation, as defined in the statute, includes wages, insurance benefits, retirement contributions, tuition reimbursement, paid leave, and other financial incentives provided to direct care staff.

If passed, this bill would allow assisted living providers more flexibility in how they distribute their revenue, potentially reducing the required spending on direct care workforce compensation.