State First To Adopt $15 Per Hour Wage For Sector
Reuters reports that following months of negotiations, Massachusetts will become the first state in the nation to mandate a starting salary of $15-per-hour for home care workers. The announcement came Friday from the Service Employees International Union Local 1199, which represents around 35,000 Massachusetts home care workers. The Springfield (MA) Republican reported that Massachusetts HHS has agreed to pay personal care attendants who “provide services to seniors, people with disabilities and others who are eligible for state programs” $15 per hour, an increase from the current $13.38 an hour rate. Health and Human Services Secretary Marylou Sudders said in a statement, “More than 35,000 PCA’s provide highly specialized care for seniors and individuals with disabilities that allow them to stay in their homes, and we look forward to continuing to build on this constructive relationship.” The Pittsfield (MA) Berkshire Eagle noted that in the past, “low pay has fueled industry turnover and instability and home care supporters say the strength of their industry is of increasing concern both for workers and the state’s growing numbers of elderly residents.”
What Happens Next
Workers will receive a 30-cent increase effective July 1, 2015. On January 1, 2016, lawmakers will begin discussing details about the path to the $15 wage, set to take effect by July 1, 2018.
What This Means For Small Businesses
The costs of increasing the wage for home care workers are worrisome for businesses across Massachusetts. As the Boston Globe reported, “many employers say a $15-an-hour minimum wage could cripple their businesses, making it harder to hire new workers and stay profitable, especially as other costs rise.” Employers in Massachusetts “already have some of the highest energy and labor costs in the nation, with a minimum wage rising to $11 an hour by 2017 and a new law going into effect next week that requires employers to provide sick time to all their employees.”
Additional Reading
NFIB previously covered the paid leave debate in Massachusetts.
Note: this article is intended to keep small business owners up on the latest news. It does not necessarily represent the policy stances of NFIB.
