Partners in Lifelong Support Since 1966

State Minimum Wage Increase - Effective January 1, 2019

The State of California minimum wage increases to $12.00 per hour for employers with 26 or more employees and $11.00 per hour for employers with 25 or fewer employees. 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 provider's costs to increase employee/staff wages to $12.00 per hour (or $11.00 per hour based on the number of employees) and the associated mandated costs (i.e. Social Security, Medicare and workers’ compensation).

Community Care Facilities (Alternative Residential Model (ARM) reimbursed)
Residential service providers reimbursed under the Alternative Residential Model (ARM) rates, service codes 905, 910, 915 and 920 do not need to submit rate adjustment requests. DDS has already adjusted these rates and you will see them beginning with your January 2019 invoice. View the new ARM rates can be found at:

Community-Based Day Programs, In-Home Respite Agencies and Work Activity Programs
Service providers classified as day programs, including infant development programs (service code 805), adult day programs (service codes 505, 510, 515) and independent living services (service code 520), in-home respite agencies (service code 862) and Work Activity Programs (service code 954) may request a rate adjustment from DDS. For instructions and the workbook to reqeust a rate adjustment from DDS, visit:

Negotiated Rate Vendors
For service providers with negotiated rates (including median rates), Lanterman is requesting that you complete the Minimum Wage Cost Reporting Workbook. Providers with negotiated/median rates who employ 26 or more employees may request a rate adjustment if any employees/staff are paid less than $12.00 per hour. Providers with negotiated rates who employ 25 or less employees may request a rate adjustment if any employees/staff are paid less than $11.00 per hour. You may only submit one vendor number per workbook.

Click here to access the workbook


Whether you are submitting your rate adjustment request to DDS or to Lanterman, the deadline to submit is March 1, 2019.  Requests received after this date will not be considered.

Please carefully read the instructions to complete the workbook and follow all instructions. You may be asked to submit supporting documentation including payroll records, workers’ compensation insurance, DE-2088 and other data. Do not submit unless it is requested.

If you have questions or need further information please contact Lanterman's Community Services Department at or 213.383.1300.