State Minimum Wage Increase - Effective 1/1/2017

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State Minimum Wage Increase effective January 1, 2017

Effective January 1, 2017, the State of California minimum wage increases to $10.50 per hour for employers with 26 or more employees. In anticipation of this increase, the Department of Developmental Services (DDS) has been allocated additional funds by the legislature for dissemination to service providers’ to meet the increased minimum wage mandate. It is important to note that the funds allocated by DDS are solely to meet a service providers’ costs to increase employee/staff wages to $10.50 per hour and associated mandated costs (e.g. Social Security, Medicare and workers’ compensation).

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), providers classified as 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 ($11.31 per hour for In-Home Respite Agencies). The aforementioned service providers’ should navigate to the following website for additional information:

Community Care Facilities (Alternative Residential Model (ARM) reimbursed)

Service providers’ reimbursed under the Alternative Residential Model (ARM) rates (residential providers’, service code 905, 910, 915 & 920), the new ARM rates can be found at Providers’ with ARM rates do not need to submit rate adjustment requests.

Negotiated Rate Vendors

For service providers’ with negotiated rates, SG/PRC is requesting that you complete the Minimum Wage Cost Reporting Worksheet (email us at to obtain a copy). Providers’ with negotiated rates, who employ 26 or more employees, may request a rate adjustment if any employees/staff are paid less than $10.50 per hour.

Community-Based Day Programs and Work Activity Programs must complete and submit the DDS the worksheet to DDS no later than March 1, 2017.

Service providers’ with negotiated rates must complete and submit the SG/PRC worksheet to SG/PRC by March 1, 2017. The wage information provided must be for the period of July through September 2016.

 If you have any questions or need further information please contact the SG/PRC Community Services Department at or (909) 622-7722.


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