Rate Adjustment Requirements for the 2019 State Minimum Wage Increase

November 29, 2018

DDS Letter Outlines Rate Adjustment Requirements for the 2019 State Minimum Wage Increase

On January 1, 2019, the state minimum wage will increase from $11.00/hr to $12.00/hr for employers with 26 or more employees, and from $10.50/hr to $11.00/hr for employers with 25 or fewer employees. DDS and the regional centers will grant rate adjustment requests to providers for only those costs necessary to increase an employee’s actual hourly wage to the new minimum wage rate and associated mandated employer costs (e.g. Social Security, Medicare, and workers’ compensation).

Providers may begin submitting the rate adjustment requests now, but all requests must be submitted no later than March 1, 2019. Providers of the following services may be eligible for a rate increase:

  • Rates set by the Department
  • Rates set by the regional center through negotiation
  • Rates established in regulations

Alternative residential model (ARM) rates will be automatically adjusted in response to the increase. New rates are also established for in-home respite workers (service code 864), voucher and participant-directed respite (service codes 420 and 465), and the reimbursement rate for non-mobile supplemental staffing for community-based day programs will increase to $1.44 per consumer hour.

Last night, DDS issued a letter to regional centers outlining the process for the rate adjustments. General information about the increase in minimum wage, as well as detailed instructions and a workbook for submitting rate adjustment requests to the Department, can be found at the following website:

http://www.dds.ca.gov/minwage/