Local Minimum Wage Ordinance – Rate Adjustment Options

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Local Minimum Wage Ordinance – Rate Adjustment Options

Effective July 1, 2016, the County of Los Angeles enacted a minimum wage ordinance which increases the minimum wage in the unincorporated areas of L.A. County to $10.50 per hour (for employers with 25 or more employees). The City of Pasadena has adopted a similar ordinance which also became effective 7/1/16. Service providers who have staff providing services in these areas, and who are paid minimum wage are expected to comply with this ordinance.

For service providers affected by these ordinances, there are options available to seek additional funding in order to implement this change. It is important to note though, that any funding allocated by DDS will be solely to meet a service providers’ payroll costs to increase employee/staff wages to $10.50 per hour. Administrative costs are not allowable. The following options for seeking additional funding to meet the local minimum wage ordinance are available, based on the type of service you provide:

Unanticipated Rate Adjustments - Community-Based Day Programs, In-Home Respite Agencies & Work Activity Programs

Service providers’ classified as day programs, including infant programs (service code 805), adult day programs (505, 510, 515) and independent living services (520), in-home respite agencies (862)and providers classified as Work Activity Programs (service code 954) may request a rate adjustment from DDS if any employees/staff are paid less than $10.50 per hour. The aforementioned service providers’ should submit to the DDS Community Rates Section, an Unanticipated Rate Adjustment as delineated in the California Code of Regulations, Title 17, Section 57920 & 57922. It is important to note that unanticipated rate adjustments must be submitted to DDS no later than 60 days from the date the change occurred, July 1, 2016. DDS has 50 days, from the time of receipt of the rate adjustment request to make a determination. Any questions related to the submission of an Unanticipated Rate Adjustment should be directed to the DDS Rate Section at (916) 654-2300 or rateadj@dds.ca.gov.

Health & Safety Waiver Exemption

The Welfare and Institutions Code (WIC) authorizes DDS to approve Health and Safety Waiver Exemptions, including requests to be in compliance with local minimum wage ordinances. This process would be applicable for any vendor for which the Unanticipated Rate Adjustment does not apply and who do not have rates which are either (i) usual and customary (ii) set by Medi-Cal, (iii) established in the Schedule of Maximum Allowances or, (iv) established by other entities such as the State Department of Health Care Services or the State Department of Social Services. SG/PRC requests that eligible service providers submit their Health and Safety Waiver Exemption requests to SG/PRC within 60 days of July 1, 2016. Please note that although SG/PRC will accept requests for Health and Safety Waiver Exemptions from eligible service providers after the effective date of the local minimum wage ordinances, the final decision regarding the effective date of the Health and Safety Waiver Exemption will be determined by DDS. Any questions related to the submission of a Health and Safety Waiver Exemption should be directed to SG/PRC Community Services at (909) 622-7722 or commsrvs@sgprc.org.

Required Documentation

The vendor must submit the following information, as part of the Unanticipated rate adjustment or health and safety exemption request:

  • Vendor name, vendor number and business & mailing address
  •  Service Code and type
  • Name and Title of Vendor Contact Person
  • Facility or office telephone number
  • Name of vendoring regional center and user regional centers
  • Completed DDS Budget Analysis Tool  - Click here
  • Supporting documentation (i.e. copy of payroll register, DE2088; workers compensation rate letter)
  • A copy of the applicable local minimum wage ordinance(s)

 Unanticipated Rate Adjustment requests must be submitted to:

  • Community Rates Section, Department of Developmental Services, 1600 9th Street, Suite 320 MS 3-8, Sacramento, CA 95814 or rateadj@dds.ca.gov and to
  • Community Services Department at San Gabriel/Pomona Regional Center, 75 Rancho Camino Drive, Pomona, CA 91766 or commsrvs@sgprc.org

Health and Safety Waiver Exemptions requests must be submitted to:

  • Community Services Department at San Gabriel/Pomona Regional Center, 75 Rancho Camino Drive, Pomona, CA 91766 or minwage@sgprc.org