From DDS: Rate Changes due to the Minimum Wage Increase, January 1, 2019
Due to the enactment of Senate Bill (SB) 3, the California minimum wage will increase to $12.00 per hour, effective January 1, 2019, for employers with 26 or more employees, and to $11.00 per hour for employers with 25 or fewer 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.
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 the new minimum wage1. More detailed information can be found here.
- Community Care Facilities – The updated Alternative Residential Model (ARM) rate schedule, effective January 1, 2019, 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 applicable to the new minimum wage increase. Providers should contact their local regional center for more information on submitting rate adjustment requests.
1 In-Home Respite Agencies may be eligible for a rate adjustment if they pay respite workers in excess of the new minimum wage requirements in compliance with the wage enhancement authorized in Welfare and Institutions Code, Section 4690.2(b)(2).
Where Can I Get More Information?
- Review the letter from the Department to regional centers regarding the minimum wage increase.
- You can contact the Department of Developmental Services for questions at (916) 654-2300
Minimum Wage Rate Adjustment, Effective January 1, 2019 - Submitting Requests To The Department
Due to the passage of Senate Bill (SB) 3, minimum wage in California will increase from $11.00 to $12.00 per hour, effective January 1, 2019, for employers with 26 or more employees, and from $10.50 to $11.00 per hour for employers with 25 or fewer employees. Regional center vendors affected by this change may be eligible to receive a rate adjustment in order to pay employees the new minimum wage. This page contains information for applicable vendors on submitting rate adjustment requests to the Department.
Who May Qualify?
The process for requesting a rate adjustment described on this page is only applicable to the following types of programs and services: Community-Based Day Programs, In-Home Respite Agencies, and Work Activity Programs. Vendors of other types of services should review the page linked below for more information on rate adjustments due to the increased minimum wage.
Instructions And Workbook:
SB 3 MINIMUM WAGE 2019 RATE ADJUSTMENT – NEGOTIATED RATES
SUMMARY & CERTIFICATION INSTRUCTIONS
Service Providers who wish to apply must complete and submit an Excel workbook. To request the Excel workbook, please email Leticia.Mendoza@HarborRC.org. Workbook must be completed and sent to Harbor Regional Center no later than Feb.15, 2019.
These instructions are for the Vendor Summary & Certification. After you read these instructions, please go to the “Vendor Summary & Certification” tab. Please review the Program Information and enter the service address associated with the information submitted on this workbook. If your program has a different mailing address than the service address, please enter this information.
Please enter the requested Contact Information for the individual responsible for completing this workbook. This information will include Contact Name, Contact Phone Number, Email Address, and Executive Director/Owner.
Please review the current rate, proposed rate change, and the proposed new rate, which are calculated based on the information you have entered on the worksheet. If there is an error message in the rate information, go back and review the information in the worksheet.
We ask that you save this workbook using your vendor number and service code in the title of the file name. For example, “H12345 055.xlsm”, then email the workbook to Harbor Regional Center at Leticia.Mendoza@Harborrc.org. If the workbook is not saved prior to emailing, the worksheet will be transmitted as a blank. Please contact Harbor Regional Center if you do not receive a confirmation email after submitting the workbook. Please read the certification instructions page and save your workbook using your vendor number.
PLEASE NOTE: By clicking the “I AGREE” checkbox near the bottom of the “Vendor Summary & Certification” worksheet, you certify that the information provided to Harbor Regional Center is specific to payroll costs necessary to meet the requirements of the minimum wage increase effective January 1, 2019. You additionally certify to the best of your knowledge and belief that the information submitted is true and correct, and subject to verification by all record keeping and audit processes, procedures, and guidelines under the Lanterman Act and Title 17 of the California Code of Regulations (CCR).
You must retain ALL backup documentation which supports the information being submitted in this workbook. The backup information for the information provided on this workbook is subject to all record keeping and audit processes, procedures, and guidelines under the Lanterman Act and Title 17, CCR.