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Rate Changes due to the Minimum Wage Increase, July 1, 2014
Due to the enactment of Assembly Bill 10 AB 10, the California minimum wage will increase to $9.00 per hour effective July 1, 2014. 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:
- Work Activity Programs and Community-Based Day Programs – Providers of these services may request a rate adjustment from the Department if any employees are paid less than $9.00 per hour. More detailed information can be found here.
- Community Care Facilities – The proposed Alternative Residential Model (ARM) rate schedule, effective July 1, 2014, can be found here. Since this schedule will be adjusted with approval of the State budget, providers with ARM rates do not need to submit rate adjustment requests.
- In-Home Respite Agencies (IHRAs) - The Department will revise the rates for all IHRAs and will provide regional centers with copies of the revised rate letters to IHRAs.
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 any employees are paid less than $9.00 per hour. Providers should contact their local regional center for more information on submitting rate adjustment requests.
Rates established in regulation:
- In-Home Respite Workers, Voucher and Participant-Directed Respite – The new rate for these services, effective July 1, 2014, is $11.88 per hour.
- Non-Mobile Supplemental Staffing – The supplemental rate for Community-Based Day Programs will increase to $1.08 per hour.