Effective January 1, 2016, the minimum wage in California will increase from $9.00 to $10 per hour (See: Letter from DDS). Providers with rates set through negotiation with the regional center need to negotiate a rate adjustment in order to pay employees no less than minimum wage effective January 1, 2016. Service Providers with negotiated rates with Far Northern Regional Center should use the attached WORKBOOK to assist in processing negotiated rate adjustment requests related to the increase in minimum wage. Note: there are four tabs at the bottom of the screen “Vendor Worksheet Instructions”, “Vendor Worksheet”, “Certification Instructions”, and “Vendor Summary & Certification”.
The rate adjustment must be specific to the unit of service that is affected by the new minimum wage and shall only include those costs necessary to increase an employees’ actual hourly wage to the new $10.00per hour minimum wage rate and associated mandated employer costs (e.g. Social Security, Medicare, and Workers’ Compensation). Vendors must submit rate adjustment requests to Far Northern Regional Center no later than March 31, 2016.
Community Based Day Program and Work Activity Programs must submit rate adjustment requests to the Department of Developmental Disabilities (DDS). Vendors for these services must submit rate adjustment requests to DDS no later than March 31, 2016. General information about the increase in minimum wage, as well as detailed instructions and a workbook for submitting rate adjustment requests to DDS can be found at: http:\www.dds.ca.gov/MinWage.
In addition, the following rates have been adjusted by DDS related to the increase in minimum wage requirement:
- In-Home Respite Agencies (IHRAs): DDS will revise the rates for all IHRAs and will provide the agencies with revised rate letters once calculated.
- In-Home Respite Worker (Service Code 894) : The new rate effective January 1, 2016 is $13.10 per consumer hour.
- Voucher and Participant-Directed Respite (Service codes 420 and 465): The new rate effective January 1, 2016 is $13.10 per consumer hour.
- Non-Mobile Supplemental Staffing: Pursuant to Tile 17, Section 57530, the supplemental reimbursement rate will increase to $1.20 per consumer hour.
- Alternative Residential Model (ARM) rates/respite facilities: The new rates effective January 1, 2016 can be found at: Community Care Facility Rates.