Industry standards boards are delivering results for workers, employers, and their communities

Industry standards boards represent a new participatory model that can improve the lives of workers, address problems faced by employers, and strengthen services in local communities.

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SOURCECenter for American Progress

Introduction and summary

Since 2018, industry standards boards or similar bodies have been adopted by six states (California, Colorado, Michigan, Minnesota, New York, and Nevada) and three cities (Seattle, Detroit, and Philadelphia).1 These bodies bring together representatives of workers, employers, and government in a forum to help set minimum workplace standards—including wages, hours, training, and safety—for an entire sector of the economy, such as fast food, nursing homes, home care, or agriculture.

Evaluation of these industry standards boards finds that they:

  • Raise pay and other standards. Standards boards are helping raise wages to $20.50 per hour for nursing home workers in Minnesota, to $20 per hour for fast-food workers in California, and to $16 per hour for home care workers in Nevada. Boards also ensure nursing home workers in Minnesota can take paid holidays and will receive training on their rights, that agricultural workers in New York receive overtime pay, and that domestic workers in Seattle will have access to paid leave.
  • Build workers’ power. The boards have raised standards in a way that has helped engage workers, enabling them to express their collective power and to develop into worker-leaders ready to take additional actions to improve conditions in their industry.
  • Create coalitions to improve industries. Elected officials have expressed strong support for these standards boards, arguing that they can benefit workers and help address employer challenges such as high turnover. Similarly, some employers express public support for board processes, which they believe give firms tools to help improve their industries.
  • Are most successful when they have strong legal authorities. Certain boards have accomplished more than others in part because they have the ability to hire dedicated staff, an easy process for their recommendations to become law, and worker-led compliance mechanisms. The Minnesota Nursing Home Workforce Standards Board provides a model for future legislation because it includes all these elements.

The accomplishments of these boards demonstrate the value of setting industry standards through a process that involves workers and employers. These bodies have provided a forum for workers and employers to discuss industry-related issues, increased worker voice and power, and raised workplace standards. Creating boards in additional jurisdictions could provide further benefits, particularly if new boards are provided with strong legal authorities and adequate resources.

Review of industry standards board accomplishments

Most boards have now gone through the process of gathering information, holding public hearings, and issuing recommendations, and several have enacted recommendations into law.

Case studies of the industry standards boards and similar bodies in California, Colorado, Michigan, Minnesota, New York, and Nevada, as well as in Seattle, Detroit, and Philadelphia, highlight that these bodies have succeeded at raising standards, providing a forum to discuss industry-related issues, and increasing worker voice.

Details on these findings are provided below, with emphasis on the boards in Minnesota and Nevada, which have been more fully implemented than some other state boards, as well as California’s Fast Food Council, which has attracted significant media attention. Case studies are based on a review of board documents, public statements, media reports, and original interviews with board members and affected workers.

A summary of industry standards board accomplishments can be found in Table 1.

Minnesota nursing home workforce standards board

On May 9, 2024, the Minnesota board recommended rules to raise the minimum wage for nursing home workers and to require that they receive time-and-a-half premium pay for all hours worked on the 11 state holidays.3 The board’s recommendations will become state law through an expedited rulemaking process. Holiday premium pay becomes effective January 1, 2025.4 Minimum hourly wages will be raised to $19 in 2026 and $20.50 in 2027, with higher minimums for certain occupations such as certified nursing assistants ($24) and licensed practical nurses ($28.50).5 The average minimum wage is expected to rise to $22 per hour by January 2026; nearly half of nursing home workers should receive wage increases.6

The board is also developing new standards for the training of nursing home workers on their legal rights.7 By statute, the board is required to develop a worker rights training curriculum and certify worker organizations qualified to provide this training.8 Workers would be paid to attend this legally required training.

The wage and leave standards were the culmination of an eight-month process by the board, starting with its first meeting on September 14, 2023.9 To arrive at these standards, the board held 13 full board meetings, 25 work group meetings, and five public forums where 71 attendees spoke (28 workers, 22 employers, and 21 members of the public).10 The board also reviewed data collected from employers about the wages and hours of more than 9,000 employees and questionnaire responses from 205 people—101 workers, 69 employers, and 35 members of the public. Board members also listened to presentations from the state departments of labor and industry, employment and economic development, and human services.

The board’s accomplishments were facilitated by its strong legal authorities and sufficient resources. Minnesota’s board has many authorities that are similar to those of other boards, such as the ability to make recommendations on a wide range of employment standards that are “reasonably necessary and appropriate to protect the health and welfare of nursing home workers [and] to ensure that nursing home workers are properly trained about and fully informed of their rights.”11 The board has nine members, three each representing employers, workers, and the government, a common number of board members. Workers who participate in board activities are also protected from retaliation, similar to workers active on most other boards.

But Minnesota’s Nursing Home Workforce Standards Board stands out in three areas. The ability to hire dedicated staff, an easy process for recommendations to become law, and worker-led compliance mechanisms make the Minnesota Nursing Home Workforce Standards Board a model for other boards.

The labor commissioner has the authority to hire an executive director and other necessary board staff, while some other boards must rely on staff from other government agencies being able to find time in their schedules to perform board duties.12 Minnesota’s board recommendations, as previously mentioned, become law through an expedited rulemaking process, though any safety standards would go through a separate process. Some other boards require the legislature to pass recommendations into law.

Finally, in addition to strong state government enforcement, Minnesota emphasizes worker-led compliance to help ensure that workers benefit from board-adopted standards. Wage theft and other legal violations are widespread in low-wage industries.13 Strong government enforcement is important to help ensure compliance, but government inspectors simply cannot know what is going on in every workplace, and workers may not always know the legal standards. This is why Minnesota’s board authorizes workers to pursue civil actions in court and, as previously mentioned, supports worker organizations to provide training on workers’ rights.

Workers and their union leaders had great hopes for the board when it was created and thus far are thrilled with its actions, which they believe will improve their jobs and quality of life and enable them to keep working in the industry. In addition, board actions are expected to help address the significant staffing shortage in the industry: As of 2023, 41 percent of Minnesota’s long-term care facilities had staffing shortages—the highest rate in the nation.14

Jared Mituga, a Minnesota nursing home worker and member of the Service Employees International Union (SEIU), explained his initial hopes for the board in an SEIU press release, stating, “we can only solve the staffing crisis by giving workers more power to raise standards for all.”15 The board, he added, “would be a huge step towards addressing the crisis that is hurting workers, residents and our whole community.” Similarly, Nessa Higgins, a nursing assistant, felt low pay driving workers out of the industry was “going to change” because of the board.16 Indeed, following the board’s initial vote on the standards, Higgins publicly spoke about the importance of the standards and thanked Minnesota Gov. Tim Walz (D): “These new standards will help us care for our families and keep us doing the work we love caring for our residents. Thank you, Gov. Walz!”17

Jamie Gulley, a board member and president of the largest statewide union representing nursing home workers, explained that the board decision to increase pay is essential to resolve hiring shortages across the state. “Right now there simply aren’t enough people willing to do this work for the wages that are being paid and the benefits that people get,” Gulley said at a news conference.18 Similarly, Nicole Blissenbach, commissioner of the Minnesota Department of Labor and Industry, told The Minnesota Star Tribune that the new wage standards can enable nursing home workers to stay in their jobs and continue caring for residents.19

California Fast Food Council

In September 2023, California passed legislation establishing a Fast Food Council to develop minimum workplace standards for the fast-food industry and raise the minimum wage for state fast-food workers employed at chains with more than 60 nationwide locations to $20 per hour, starting in April 2024.20 The increase boosted average hourly pay by 18 percent and did not reduce employment in the industry, according to a September 2024 study by the Institute for Research on Labor and Employment at the University of California, Berkeley.21

The council held its first meeting in March 2024 and subsequent meetings in July, August, September, and October.22 Going forward, the council plans to meet regularly to develop new minimum employment standards on issues such as working hours and conditions and future minimum wage increases, although wage increases cannot legally occur before January 1, 2025.23

Upon passage of the law creating the Fast Food Council, California Gov. Gavin Newsom (D) declared, “Today, we take one step closer to fairer wages, safer and healthier working conditions, and better training by giving hardworking fast-food workers a stronger voice and seat at the table.”24

The council has significant authority, but it is more limited than Minnesota’s board.25 The council can propose standards related to wages, working hours, and working conditions for expedited rulemaking, but safety and civil rights standards have a different process, wage increases are subject to an annual cap, and the board is prevented from acting in certain issue areas such as paid time off. The council may hire staff and other support as it deems necessary, subject to appropriations. Workers are protected from retaliation and may take legal action in court to protect their rights.

The council is still in its early stages of meeting, gathering information, and holding hearings, but workers and some business leaders think it has great potential.

Maria Maldonaldo, a council member and staffer with the SEIU, is optimistic about the council’s ability to improve conditions, empower workers, and move the industry forward.26 “I hear all the time how much workers love the increase to $20 per hour, but also about the need to do more because California is so expensive,” Maldonaldo told the author of this report. She also mentioned the need for additional wage increases and protections to ensure hours and to prevent retaliation, among other changes she hopes to seek through the council.

Maldonaldo emphasized her belief that the board can help build collective power for workers and facilitate discussions with industry leaders. “The council is the way for workers to have a voice in the fast-food industry,” she said. Through the council, she and her colleagues are talking to dozens of workers every week, enabling workers to share their stories and helping their collective power. She also mentioned the council’s value in fostering conversations with industry: “We need to improve industry and work with employers in good faith to do so.”27

The council is the way for workers to have a voice in the fast-food industry.

Fast Food Council member Richard Reinis, former CEO and general counsel of one of the largest Krispy Kreme franchisees in the country, is also optimistic about the council’s potential, though he expressed some concerns about its operations.28 Reinis told the author he was frustrated by the way his time was used during the initial council meeting where members were sworn in. He thought that the council needed greater clarity in its goals and schedule and to create working groups. He believes that the success of the board ultimately depends on the qualities of the board members, arguing board member selection is critical because “it works best if we have doers rather than politician-like members.”29

Still, Reinis is “in favor” of the council and hopeful that council members “can work together and deliver for workers and industry.” He favorably contrasted the board to purely political standard setting by the legislature, noting that “workers and employers can come up with better answers than politicians.” He added that “too often politicians wade into things they don’t know anything about.”30

Workers and employers can come up with better answers than politicians.

Richard Reinis, California Fast Food Council member and former Krispy Kreme franchisee

Nevada Home Care Employment Standards Board

The Nevada Home Care Employment Standards Board issued recommendations in December 2022 calling for increased wages for workers, higher reimbursement rates for employers, and know-your-rights trainings for workers.31 The board’s recommendations were largely incorporated into the budget proposal by the state Department of Health and Human Services and subsequently passed by the legislature and signed into law by Gov. Joe Lombardo (R) in June 2023.32 The budget bill raised the minimum wage for home care workers in the state to $16 per hour and increased the reimbursement rate for home care provider companies to $25 per hour.33 Nevada’s board legislation contains a process for adopting eligible recommendations into law through rulemaking, though these recommendations did not go through that process.34

The recommendations were the culmination of a year of work by the board that included monthly meetings, surveys of employers and workers, and testimony by the affected community.35 No further board meetings or actions are scheduled, but reports indicate that workers are considering restarting the board to seek additional wage increases and other improvements, including potentially strengthening the board’s authorities.36 The board can be impaneled if workers submit 50 signatures, but other changes to board powers would require new legislation.37

Workers and their unions say the board has been a success. Irma Nuñez, who has been a home care worker for 14 years in Las Vegas and attended several board meetings, was thrilled with the board’s efforts to increase wages. She “just got a raise to $16” but before that was getting “$9 to $10” per hour.38 Nuñez told the author she has been working every day for several years, starting at 4:30 a.m., and is glad her hard work will finally be rewarded a bit more. Rozetta Love, a home care worker who spoke at board hearings, said she worked seven days per week for her clients, “bathing, clothing, grooming, feeding, keeping up with doctor appointments” and was “so overjoyed” by the raise she received from board recommendations.39 Similarly, Shanieka Cooper, a board member representing workers who was a home care worker for many years, thinks the wage increase is “awesome,” especially because she also hadn’t had a raise in years.40

Still, workers noted many more issues they felt a board could address in the future. Nuñez stated she still has “no insurance, no paid leave, zero benefits, and I can’t afford my check-up visits for my diabetes.”41 Board member Cooper expressed a sentiment shared by many: “We accomplished a lot, but we could do more,” listing off issues such as “wage increases, hours, mileage reimbursement, sick days, a whole slew of things.”42 Home care worker Love similarly felt that the “board achieved what we were looking for … but it could do more.”43 Tracey Richards, a home care worker who attended board hearings, added another reason the board “should always exist”: It helps people realize “we are essential.”44

We accomplished a lot, but we could do more.

Shanieka Cooper, member of the Nevada Home Care Employment Standards Board

Workers and worker board members felt the board process was critical to helping workers come together and make their voices heard. Indeed, many participating workers have recently become union members. The board process developed worker-leaders and demonstrated to workers, employers, and the public how unions can help improve the industry.

Love noted that she thought home care workers needed to “make some noise” to improve their conditions but didn’t know how to do so “until the union asked me to get involved with the board.”45 Home care worker Richards said the board helps workers “build a better base, be more legitimate, taken seriously, and … helps people want to join together.”46 Safiyyah Abdul Rahim, a board member representing workers, said the board helped the union “bring to light” issues in the home care industry that workers could rally around.47 Indeed, Matt MacDonald, an organizer for the SEIU, argued that because of the board, “workers joined unions.”48 Workers, he continued, “engaged around board process and turnout” and then organized nine separate home care agencies “totaling 1,000 employees.”

Some employers also expressed support for the board. Maxine Hartranft, a home care employer and member of the standards board, valued the board process as a way to make needed changes in the industry to address severe staffing issues, providing testimony that she was “honored to be a part of the Homecare Standards Board.”49 She felt the board provided a good opportunity to address the twin challenges of low pay for workers and low state reimbursements for employers, which together have created a staffing shortage. “Low pay rates for caregivers makes recruiting and retaining caregivers extremely difficult and leads to high caregiver turnover,” she noted. She explained that nursing home workers are “severely underpaid due to the state’s inadequate Medicaid rates.”

The board, Hartranft felt, provided an opportunity for employers and workers to make recommendations that benefit the entire industry and could push the state government to act, forcing “a commitment from the state to fund and prioritize the changes that were identified by the Homecare Standards Board.”50

New York Farm Laborers Wage Board

On February 22, 2023, the New York State Department of Labor adopted new farm labor overtime regulations based directly on the recommendations of the Farm Laborers Wage Board.51 The regulations reduce the overtime threshold for farm laborers from 60 hours per week to 40 hours per week over a 10-year period.52 Once fully phased in, it is estimated that the new regulations will result in a raise of $34 to $95 per week for farm laborers.53

The Farm Laborers Wage Board issued its final report on September 6, 2022; the New York labor commissioner adopted the report and recommendations on September 30, and they were subsequently codified into law by regulation.54 The labor commissioner is required to accept, modify, or reject board recommendations.55 In other words, under the law, the board has a direct process for its recommendations to be enacted. Thus, the board has significant power, though the statute that created the Farm Laborers Wage Board limited its focus to overtime.56

Before issuing its recommendations, the Farm Laborers Wage Board hosted its first public hearing on February 28, 2020, and over the course of the next two years held regular public hearings and public meetings, receiving testimony from farmworkers, agricultural employers, academic experts, and elected officials.57

Seattle Domestic Workers Standards Board

Since being authorized in 2018, the Domestic Workers Standards Board has issued a number of recommendations that have been implemented into law, including increased workers’ rights education and the development of a portable time-off system.58 By law, the city council must act on board recommendations within 120 days.

As the first newly created standards board in the United States, it faced some operational challenges in its first few months with the administrative work necessary to create a board. These challenges included creating bylaws and trainings and developing the board’s culture.59 But since those initial stages, the board has been quite productive. Throughout its tenure, the board has helped implement trainings for hiring agencies and workers on labor rights, sexual harassment, and workplace safety standards, and in June 2022, Seattle announced funding available to area organizations for outreach and to help domestic workers understand their rights.60 Additionally, based on board recommendations, the Seattle City Council unanimously voted in November 2021 to develop a portable paid-time-off system for domestic workers that the city is working to implement.61

Many workers and employers expressed support for the portable paid-time-off system in particular, which allows multiple employers to contribute to employees’ paid time off. Laura, who works as a nanny, shared context with the nonprofit Hand in Hand: The Domestic Employers Network for why it was needed:

When we don’t have access to paid time off, it means that a lot of the time we have to go to work sick or make the difficult decision of adjusting our budget, which is generally already at its limit. As many of us are living day-to-day. (Taking a sick day) adds extra stress of thinking of how we will pay for basic necessities like rent, phone bill, and gas.62

Colorado Direct Care Workforce Stabilization Board

On September 1, 2024, the Colorado Direct Care Workforce Stabilization Board issued recommendations after a year of hearings, meetings, and analysis of industry conditions.63 Its recommendations included proposals to, among other things, increase pay to $25 per hour by 2026 and promote and protect workers’ civil rights.64

The board does not have the legal authority to enact its recommendations. As a result, many of the recommendations would require legislative action, though some could become law through state agency rulemaking if they fall under executive powers.65 The board relied on staff support from other government agencies for its operations.

Although it is too early to properly evaluate the impact of the Direct Care Workforce Stabilization Board, a number of workers participated in board hearings, and workers and policymakers expressed optimism after its creation, despite the limits on its authorities. “After years of care workers organizing and making our voices heard, Colorado has taken a big step,” said Charmayne Phillips, a longtime care worker, in a public statement.66 State Sen. Jessie Danielson (D), sponsor of the board legislation, said she hopes the board can “not only stabilize the workforce but also grow and improve it, to ensure better conditions and pay and better care for consumers.” Indeed, The Bell Policy Center, an organization promoting economic mobility in the state, argues that the board can help improve the industry by increasing job quality for the direct care workforce and ensuring those in need of care are able to receive it.67

Michigan Nursing Home Workforce Stabilization Council

On December 14, 2021, Gov. Gretchen Whitmer (D) signed an executive order establishing the Michigan Nursing Home Workforce Stabilization Council.68 The council held its first meeting in June 2022 and issued final recommendations on December 1, 2023, after a year and a half of information gathering, subgroup breakouts, meetings, and discussions.69

The council did not have dedicated staffing from the state. Instead, government employees from other agencies provided assistance while maintaining their principal jobs, which may have slowed the pace of the council.70 Furthermore, and perhaps more importantly, because the council was created through executive action, it had limited legal authority and council recommendations were only advisory.

Still, the council’s recommendations—which address issues including staffing and compensation, creating support centers for direct care workers, and bolstering recruitment and retention strategies through registered apprenticeships and labor-management partnerships—may have informed agency actions and legislation. For example, in March 2023, the state of Michigan allocated $67 million for long-term care workforce stabilization and development.71 In August 2023, the Michigan Department of Health and Human Services awarded $25 million to fund an innovative labor-management workforce retention, recruitment, and training program to address short-term staffing challenges and to advance long-term solutions to the nursing home workforce crisis.72 These actions were similar to council recommendations.

In addition, the council was able to more effectively bring and elevate the voices of workers into the decision-making process. The Michigan Elder Justice Initiative, an advocacy organization for older and disabled people, put out a report highlighting that the council enabled policymakers to “hear directly from nursing home direct care workers about the challenges and rewards of their work.”73 Martha Nichols, a nursing home worker for 36 years and executive member of SEIU Healthcare Michigan and member of the council, felt the council could empower workers: “Workers know this industry best and we know what’s needed to improve care, raise standards, and retain and attract workers to meet the needs of our communities.”74

Some employers also appreciated how the board process helped elevate their voices. Mark Berger, member of the council and principal at Villa Healthcare, said he thought the council could help create “meaningful partnerships and dialogue.”75

Detroit industry standards board

In 2021, Detroit passed a law to allow for the creation of industry standards boards for a range of sectors of the economy.76 An industry standards board for arena workers at Little Caesars Arena, Ford Field, and Comerica Park was established in July 2023 following the submission of a petition to the city council signed by more than 150 arena workers, which triggered the arena workers board into existence.77

The board has been holding public meetings, but as of October 2024, it had not yet issued final recommendations. Any recommendations issued by the board would not have the full force of law unless Michigan state preemption, which limits the ability of communities such as Detroit to determine local policies, is overturned.78

Despite the legal limits to its authorities and its incomplete process, the board has already helped promote worker voice. Porcha Perry, an arena worker who does housekeeping for Comerica Park and SEIU Local 1 member, said in an SEIU statement that, “With this board, we will have a say in decisions about the wages, working conditions and hours we need.”79 SEIU Local 1 union steward Linda Hall echoed a similar sentiment, stating the board “give[s] arena workers a real voice to make decisions together with their employers about healthier, safer, and more fair workplaces that allow our communities to thrive.” Indeed, the SEIU estimates that 640 arena workers in Detroit have joined the union.80

Philadelphia Domestic Workers Standards and Implementation Task Force

In 2019, the Philadelphia City Council created the Philadelphia Domestic Workers Standards and Implementation Task Force to help implement and enforce its Domestic Worker Bill of Rights and to recommend additional standards.81 Since then, the task force has held quarterly public hearings and issued reports with recommendations.82

While the city council must pass task force recommendations, the city has very limited staff to support the task force’s operations.83 Still, the task force has helped push forward substantive improvements to the labor enforcement process in the city, including translating all labor complaint forms into multiple languages, improving the bill of rights complaint form, and issuing written determinations for the findings of claims. Since the task force’s creation, there has been a 400 percent increase in wages recovered by the city’s Office of Labor for domestic workers.84

Lastly, Nicole Kligerman, a task force member and the Pennsylvania director for the National Domestic Workers Alliance, thinks the board has been helpful for building worker organization. The task force has been “good for the worker-leaders,” she told the author, adding that it “developed them and their understanding of power.”85 It has also “brought workers and councilmembers together,” adding to workers’ political power as they seek additional policy reforms.86

[The Philadelphia Domestic Workers Standards and Implementation Task Force] brought workers and councilmembers together.

Nicole Kilgerman, task force member and Pennsylvania director of the National Domestic Workers Alliance

Critical board policy elements

Policymakers considering creating industry standards boards must consider numerous policy elements such as how many members to include on the board. Detailed policy choices help determine the effectiveness of an industry standards board. A previous Center for American Progress report details seven critical elements in standards board legislation:87

  1. Clear purpose statement to improve wages and working conditions
  2. Representative board member selection
  3. Ability to gather relevant information and issue comprehensive recommendations
  4. Adequate staff and resources
  5. Processes that enable quick review and adoption of board recommendations
  6. Strong enforcement mechanisms
  7. Empowerment of workers to participate in board activities

The case studies previously discussed highlight and add specificity to these seven policy elements. Although all seven are required of a strong and effective board, three features were particularly noticeable in the case studies and differentiated the strongest and most effective boards from others: the authority to hire dedicated staff, an easy process for board recommendations to become law, and worker-led compliance provisions.

The authority to hire dedicated staff means that the board can rely on its in-house staff rather than hoping that government staff loaned to it from other agencies can find the time to do board work, even as they maintain their principal responsibilities. An easy process for board recommendations to become law, such as an expedited rulemaking process, means that boards can quickly and effectively set standards. Without such processes, board recommendations may be considered merely advisory and thus be ignored by policymakers and have little impact. Finally, given the widespread prevalence of wage theft and other legal violations commonly suffered by low-wage workers, boards need strong enforcement mechanisms to ensure compliance with their standards.88 Workers need additional tools to complement government enforcement agencies. The most notable of these in the case studies are a private right of action to take companies to court and training on workers’ rights provided by worker organizations.89

Table 2 highlights the three policy elements emphasized in the case studies that are likely to facilitate board success. As the table indicates, several boards contain some of these key policy mechanisms, but the Minnesota Nursing Home Workforce Standards Board stands out as a model for others to emulate. The Minnesota Nursing Home Workforce Standards Board contains all seven policy elements detailed in the prior CAP report and the three key elements described above.

Conclusion

Review of industry standards boards in six states and three cities demonstrates that involving workers and employers in standard-setting processes can empower workers, improve working conditions, and ensure that standards are level across an industry, benefiting both employees and employers. Industry standards boards represent a new participatory model that can improve the lives of workers, address problems faced by employers, and strengthen services in local communities. In short, many industry standards boards are working well.

Still, some boards have accomplished more than others. Policymakers should understand that boards with greater resources and authorities are more likely to succeed. Additional cities and states considering adopting industry standards board legislation to address workforce challenges should seek to model the legal authorities provided to Minnesota’s Nursing Home Workforce Standards Board.

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