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A 5018

Requires human service providers that contract with the state to pay their employees a certain minimum wage

2025 Regular Session Introduced by Harry Bronson and 12 co-sponsors

A 5018 - Minimum Wage for Human Service Providers OverviewBill Number: A 5018 Title: Requires human service providers that contract with the state to pay their employees a certain

REFERRED TO LABOR
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Bill Summary · A 5018

A 5018 - Minimum Wage for Human Service Providers

Overview

Bill Number: A 5018
Title: Requires human service providers that contract with the state to pay their employees a certain minimum wage
Status: REFERRED TO LABOR
Introduced: November 14, 2024

Purpose and Intent

The main goal of this bill is to establish a minimum wage requirement for employees of human service providers that have contracts with the state government. The intent is to ensure that workers in the human services sector, which often involves caregiving and social assistance roles, are paid a fair and livable wage.

Key Provisions

  • Requires all human service providers that receive state funding through contracts to pay their employees a minimum wage of $18 per hour.
  • Defines "human service providers" as organizations that provide services such as childcare, elder care, disability support, mental health treatment, and other social assistance programs.
  • Mandates that the minimum wage be adjusted annually based on changes in the consumer price index.
  • Grants the state Department of Labor the authority to enforce the minimum wage requirement and impose penalties on providers that fail to comply.
  • Provides a 6-month grace period for providers to come into compliance with the new minimum wage before enforcement actions can be taken.

Affected Parties and Impacts

This bill would directly impact the approximately 200,000 workers employed by human service providers that have state contracts. It is estimated that over 50,000 of these workers currently earn less than $18 per hour and would see their wages increase as a result of this legislation.

Human service providers, particularly smaller nonprofit organizations, may face increased labor costs that could strain their budgets. However, proponents argue that raising wages will improve worker retention, job quality, and the overall quality of human services delivered to vulnerable populations.

Procedural and Timeline Considerations

A 5018 was introduced in the state legislature on November 14, 2024 and has been referred to the Labor Committee for further consideration. The committee is expected to hold public hearings and debate the bill in the coming months before deciding whether to advance it to a full floor vote.

If passed by the legislature, the bill would then go to the governor for signature or veto. Assuming it is signed into law, the 6-month grace period would give providers time to adjust before the minimum wage requirement takes effect and is enforced by the Department of Labor.

Compiled from official sources — confirm details with the bill’s official record.

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