Vendor Rate Adjustments for Employee Sick Leave 

(May 6, 2024) 

Senate Bill (SB) 616 modifies the Healthy Workplaces, Healthy Families act of 2014. This entitles employees who work on or after January 1, 2024, to accrue 40 hours or 5 days of sick leave or paid time off by the 200^th calendar day of employment, each calendar year or 12-month period. Title 17, California Code of Regulations (CCR)allows vendors to request a rate increase, if necessary, in order to comply with the new sick leave mandate. This letter contains information on the types of vendors that are affected and what process will be used to make necessary rate adjustments.

Vendors with Rates Set by the Department of Developmental Services (Department):

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), not providing a minimum of 40 hours or five paid sick days annually, as of December 31, 2023, can submit rate adjustment requests. The rate adjustment is only applicable to the additional required 16 hours or two days beyond the previously mandated sick leave of 24 hours or three days. Vendors can begin submitting requests to the Department, with a copy to the vendoring regional center, at any time. However, all rate adjustment requests must be received by the Department no later than July 1, 2024. Vendors may submit a rate adjustment request online via the Department’s website using the following link: Sick Leave-2024

Rate adjustments will be effective January 1, 2024.

Vendors with Rates Set through Negotiation with Regional Centers:

Regional centers may negotiate rate adjustments with vendors in order to implement the requirements of SB 616, if vendors are not already providing a minimum of 40 hours or five paid sick days annually. The rate adjustment is only applicable to the additional required 16 hours or two days beyond the previously mandated sick leave of 24 hours or three days. For service providers with negotiated rates, SG/PRC is requesting that you complete the Employee Sick Leave Workbook and must maintain documentation on the process to determine, and rationale for granting, any rate adjustment associated with the implementation of SB 616. Please be prepared to submit supporting documentation with the completed worksheet including payroll records for the review period, worker’s compensation insurance rate letter, unemployment insurance (DE-2088 form), sick leave hours benefit as of 12/31/23, and other data. Rate adjustments will be effective January 1, 2024.

Community Care Facilities with Alternative Residential Model (ARM) Rates:

The revised ARM rates, effective January 1, 2024, for community care facilities, can be found on the DDS website here.

Service providers may begin submitting rate adjustments requests immediately, but they must be submitted no later than July 1, 2024. Any approved rate adjustment will be effective January 1, 2024.

If you have any questions regarding this correspondence or need further information, please contact us at vendorsickleave@sgprc.org.

Respectfully,

Dara Mikesell, Chief Financial Officer

• Employee Sick Leave Workbook