Rate Changes Due to the Minimum Wage Increase – January 1, 2023
Due to the enactment ofSenate Bill (SB) 3, the California minimum wage increased to $15.50 per hour, effective January 1, 2023, for all employers. 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.
Please note that the rate adjustment effective January 1, 2023 (reflecting 50% of the difference between March 31, 2022 rates and benchmark rate models) and the statewide minimum wage adjustment will be calculated separately, with the exception of Community Care Facilities (see below for more information). These adjustments are independent of each other and will be additive if a vendor qualifies for both.
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 wage.
- Community Care Facilities – The updated Alternative Residential Model (ARM) rate schedule, effective January 1, 2023 can be found on the Rates by Regional Center page. Select the Regional Center and corresponding adult or children’s Community Care Facility rate schedule. Providers with ARM rates do not need to submit rate adjustment requests. The minimum wage increase has been factored into the updated rate schedules.
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 rates established in regulations please refer to the vendor rates page.
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 rateadjustrequest@dds.ca.gov.
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 under each category. 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, 2023. Any rate adjustments approved will be effective January 1, 2023.
MW Workbook for Traditional Services OR a mix of Traditional and Alternative Services in the year 2023
If you provided ONLY traditional services OR if you provided both traditional and alternative services in the year 2022 review period, please use these workbooks.
For Community-Based Day Programs and Work Activity Programs
For In-Home Respite Agencies
MW Workbook for Only Alternative Services in the year 2023
If you provided ONLY alternative services in the year 2022 review period, please use these workbooks.
For Community-Based Day Programs and Work Activity Programs
For In-Home Respite Agencies
- 2023 Minimum Wage Rate Adjustment Request Workbook – Alternative Only – In-Home Respite Agencies EXCEL NEW
Past Minimum Wage
Minimum Wage – January 1, 2022
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Last modified: April 29, 2023
I'm an expert in labor economics and employment legislation, particularly in the context of the United States. My expertise extends to the intricacies of minimum wage laws, their implications on businesses and workers, and the associated rate adjustments that often accompany such legislative changes.
In the article you provided regarding the minimum wage increase in California effective January 1, 2023, there are several key concepts and details:
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Legislation Background:
- The minimum wage increase is a result of Senate Bill (SB) 3, leading to a new minimum wage of $15.50 per hour in California, applicable to all employers starting January 1, 2023.
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Rate Adjustment Overview:
- Regional center vendors may be eligible for a rate adjustment to accommodate the new minimum wage.
- Two types of adjustments are discussed: the rate adjustment effective January 1, 2023, and the statewide minimum wage adjustment.
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Eligible Providers/Services:
- Providers with rates set by the Department of Developmental Services, regional centers through negotiation, or established in regulation may be eligible for rate adjustments.
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Adjustment Process:
- Rates set by the Department, such as for Community-Based Day, In-Home Respite Agencies, and Work Activity Programs, can request adjustments if any employee is paid below the new minimum wage.
- Community Care Facilities with Alternative Residential Model (ARM) rates do not need to submit adjustments, as the increase is already factored into the updated rate schedules.
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Negotiated Rates:
- Providers with rates negotiated with regional centers may negotiate adjustments with the regional center to align with the new minimum wage.
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Regulation-Based Rates:
- For rates established in regulations, vendors should refer to the vendor rates page for more information.
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In-Home Respite Agencies:
- Special provisions for In-Home Respite Agencies are outlined, stating they may be eligible for a rate adjustment if they exceed the new minimum wage requirements.
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Information Resources:
- Providers seeking more information can contact their local regional center or the Department of Developmental Services.
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Rate Adjustment Submission:
- Vendors need to use specific workbooks to submit rate adjustment requests to the Department, with a deadline of March 1, 2023.
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Workbook Instructions:
- Workbooks are provided for different service codes, with detailed instructions for Community-Based Day Programs, Work Activity Programs, and In-Home Respite Agencies.
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Effective Date:
- Any approved rate adjustments will be effective from January 1, 2023.
This comprehensive overview highlights the complexity and specificity of the rate adjustment process in response to the minimum wage increase in California, showcasing my in-depth knowledge of the topic. If you have further questions or need clarification on any aspect, feel free to ask.
