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Rate Changes due to the Minimum Wage Increase, January 1, 2017
Due to the enactment of Senate Bill (SB) 3, the California minimum wage will increase to $10.50 per hour, effective January 1, 2017, for employers with 26 or more employees. As a result, a number of regional center vendors may be eligible for a rate adjustment in order to pay employees the new minimum wage
Which Providers/Services are Eligible?
All providers of services with rates established in the following ways may be eligible for a rate adjustment:
- Rates set by the Department of Developmental Services (Department);
- Rates set by regional centers through negotiation;
- Rates established in regulation.
How will rates be adjusted?
This depends on how the service rate was set initially.
Rates Set by the Department:
- Community-Based Day, In-Home Respite Agencies, and Work Activity Programs, may request a rate adjustment from the Department if any employee is paid less than $10.50 per hour1. More detailed information can be found here.
- Community Care Facilities - The updated Alternative Residential Model (ARM) rate schedule, effective January 1, 2017, can be found here. Providers with ARM rates do not need to submit rate adjustment requests.
Rates Set by Regional Centers through Negotiation:
- Rates for a variety of services are set through negotiation between providers and regional centers. Providers with rates set in this manner may negotiate a rate adjustment with the regional center, if they employ 26 or more employees and any employees are paid less than $10.50 per hour. Providers should contact their local regional center for more information on submitting rate adjustment requests.
Rate Established in Regulation:
- Non-Mobile Supplemental Staffing - The supplemental rate for Community-Based Day Programs will increase to $1.40 per hour.
1 In-Home Respite Agencies may be eligible for a rate adjustment if they pay respite workers in excess of $10.50 in compliance with the wage enhancement authorized in Welfare and Institutions Code, Section 4690.2(b)(2).
Where can I get more Information?
- You can contact your local regional center or review the letter from the Department to regional centers regarding the minimum wage increase.
- You can contact the Department of Developmental Services for questions regarding Non-Residential Rates at (916) 654-2300, or for questions regarding Residential Rates at (916) 654-2140.