New York State is considering proposed state legislation that would raise wages for home care workers. Fair Pay for Home Care would establish a minimum base wage and provider reimbursement for home care workers at 150 percent of the highest minimum wage in each of the state’s wage regions–in practice, this would lift home care wages to a minimum of $22.50 per hour, up from as little as $13.20.
This analysis estimates the costs and savings from passing the legislation. We find that State costs would be more than offset by economic benefits. The state has the opportunity to use federal funding, which would fully cover the costs of wage increases in the first quarter of fiscal year 2023.