Posted on February 3, 2017 10:04 am

Rate Changes due to the Minimum Wage Increase

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:

  1. Rates set by the Department of Developmental Services (DDS);
  2. Rates set by Far Northern Regional Center through negotiation;
  3. 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, (Service Codes 505, 510, 515, 520, 525, 805, 862 and/or 954) may request a rate adjustment from the Department if any employee is paid less than $10.50 per hour1.

 

  • 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. All ARM rates have been adjusted by FNRC and will be reflected on the January 2017 billing invoices.

Rates Set by Far Northern Regional Center 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 have received a letter providing information on submitting rate adjustment requests to the Regional Center including contact information and submission instructions. The workbook for rates set by FNRC in negotiation can be found here.

Rates 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?

  • For information on Rates Set by the Department, please contact the Department of Developmental Services (DDS) for Non-Residential Rates at (916) 654-2300, or for questions regarding Residential Rates please call (916) 654-2140.

OR

  • For information on Rates Set by the Regional Center, please refer to the letter mailed to your Agency dated February 1, 2017 which includes contact information as well as instructions on submitting rate adjustment requests.

when is the deadline for submitting rate adjustment requests?

  • All rate adjustment requests must be received by the Department and Far Northern Regional Center no later than March 1, 2017.