Rate Changes Due to the Minimum Wage Increase – January 1, 2021
Due to the enactment of Senate Bill (SB) 3, the California minimum wage will increase to $14.00 per hour, effective January 1, 2021, for employers with 26 or more employees, and to $13.00 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:
a. Rates set by the Department of Developmental Services (Department);
b. Rates set by regional centers through negotiation;
c. 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, may request a rate adjustment from the Department if any employee is paid less than the new minimum wage1.
- Community Care Facilities – The updated Alternative Residential Model (ARM) rate schedule, effective January 1, 2021 – Community Care Facilities Rates. 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.
Rates Established in Regulation:
For updated rates established in regulations please refer to the vendor rates page.
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?
- You can contact your local regional center or review the letter from the Department to regional centers regarding the minimum wage increase. OR
- You can contact the Department of Developmental Services for questions at 916-654-1954.
Instructions & Workbook
The following are instructions for programs vendored with regional centers under service codes 505, 510, 515, 520, 525, 805, 862 and/or 954. For all other service codes refer back to your regional center.
The workbooks below should be used by applicable vendors to submit rate adjustment requests to the Department. Detailed instructions are contained in the tabs that precede the worksheets. Due to the respite worker wage enhancement authorized in Welfare and Institutions Code 4690.2(b)(2), there are two workbooks. One is for vendors of Community-Based Day Programs and Work Activity Programs, and the other is for In-Home Respite Agencies, as specified below. Rate adjustment requests must be submitted no later than March 1, 2021. Any rate adjustments approved will be effective January 1, 2021.
For Community-Based Day Programs and Work Activity Programs
For In-Home Respite Agencies
1 These workbooks include a calculation for the monthly rate for providers under the Alternative Services model.
Last modified: December 30, 2021