Our Position
From Commitment to Care:
Fixing Wage Implementation
for Michigan’s Direct Care Workforce
The Michigan Direct Care Worker (DCW) Wage Coalition exists to ensure that direct care
workers are compensated fairly so people with disabilities can receive stable, high-quality
care in their homes and communities.
Over the past several years, Michigan has made important policy commitments to improving DCW wages. However, FY26 revealed a critical gap between policy intent and on-the-ground reality: wage funding intended to support workers has often failed to reach providers and families.
As of this position statement’s edition date, most of the Community Mental Health Services Programs (CMHSPs) have not provided any additional funding to providers and families in the current fiscal year for a DCW wage increase effective January 1, 2026. As a result, required wage increases have not been consistently administered, workforce instability persists, and families and providers are left navigating uncertainty.
FY27 must be the year Michigan fixes its implementation process to ensure Michigan’s commitment to direct care workers is honored.
Protect Existing Wages
The Coalition’s priority is to prevent wage erosion.
Current wage expectations must be maintained statewide.
Administrative delays, procurement changes, or ambiguous guidance must not result in workers losing ground.
If higher wages are required, the funding must accompany those requirements.
Advance Toward a $22/Hour Wage Benchmark
The Coalition supports moving toward a $22/hour wage benchmark for direct care workers in FY27.
This starting wage benchmark reflects inflationary pressures, minimum wage increases, and ongoing workforce shortages.
Even at $22/hour, DCW wages remain below levels permitted under the Waskul Settlement for the Habilitation Support Waiver’s self-determined arrangements—highlighting ongoing system inequities.
Establishing a realistic, competitive benchmark is essential to recruitment, retention, and continuity of care.
Enforce Wage Pass-Through and Accountability
FY26 demonstrated that guidance without enforcement does not work.
Funding associated with minimum wage increases, Earned Sick Time Act requirements, and wage enhancements must be distributed to providers and families, to support direct care workers as intended.
Boilerplate and contractual language should clearly state that funding must be passed through, not rely on assumptions that this will occur.
Accountability mechanisms are essential to ensure appropriations translate into paychecks.
Replace Temporary ARPA Dollars with Sustainable Funding
Michigan currently relies on temporary ARPA funds to support permanent wage obligations.
These dollars are expiring.
Without replacement, Michigan risks wage rollbacks, provider instability, and service disruptions.
FY27 must include ongoing General Fund investment to stabilize wages and avoid repeating FY26 failures.
Improve Transparency and Data Tracking
To prevent future implementation gaps, the Coalition supports:
Tracking whether wage funding reaches providers and workers,
Incorporating wage pass-through questions into workforce surveys,
Increasing transparency around rate setting and distribution.
Clear data strengthens accountability and builds trust across the system.
The Bottom Line
Michigan has already made wage commitments. FY27 must ensure those commitments are honored.
A stable direct care workforce protects families, supports community-based care, and reduces long-term public costs. Fixing wage implementation is not an expansion of policy—it is the responsible completion of it.
Updated Jan 29, 2026