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Rate Changes due to the Minimum Wage Increase, January 1, 2016
Due to the enactment of Assembly Bill 10 , the California minimum wage will increase to $10.00 per hour effective January 1, 2016. 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 $10.00 per hour. More detailed information can be found here.
- Community Care Facilities - The updated Alternative Residential Model (ARM) rate schedule, effective January 1, 2016, can be found here. 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 $10.00 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 January 1, 2016, is $13.10 per hour.
- Non-Mobile Supplemental Staffing - The supplemental rate for Community-Based Day Programs will increase to $1.20 per hour.