Minimum wage - wage pass-through requirement for certain home care agencies - applicability - reports - recovery.

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(1) This section applies to each home care agency that receives reimbursement pursuant to the "Colorado Medical Assistance Act" for the provision of personal care services, homemaker services, or in-home support services.

  1. On and after July 1, 2020, the hourly minimum wage for persons who provide personal care services, homemaker services, or in-home support services for which a home care agency may receive reimbursement pursuant to the "Colorado Medical Assistance Act" is twelve dollars and forty-one cents per hour.

  2. For any increase to the reimbursement rates for personal care services, homemakerservices, or in-home support services that takes effect during the 2020-21 fiscal year, home care agencies shall use eighty-five percent of the funding resulting from the increase to increase compensation for nonadministrative employees above the rate of compensation that nonadministrative employees are receiving as of June 30, 2020. Home care agencies may use any remaining funding resulting from the reimbursement rate increase for general and administrative expenses, such as chief executive officer salaries, human resources, information technology, oversight, business management, general record keeping, budgeting and finance, and other activities not identifiable to a single program.

  3. (a) Each home care agency shall track and report how it used any funding resulting from the increase in the reimbursement rate pursuant to section 25.5-6-1602 or 25.5-6-1603 using a reporting tool developed by the state department. On or before December 31, 2020, each home care agency shall submit the report to the state department demonstrating how the funding was used to increase compensation for the 2019-20 fiscal year. On or before December 31, 2021, each home care agency shall report to the state department how the funding was used to increase or, in the event that there is no reimbursement rate increase, maintain each employee's compensation for the 2020-21 fiscal year. The state department has ongoing discretion to request information from a home care agency demonstrating how it maintained increases in compensation for nonadministrative employees beyond the reporting period.

(b) Each home care agency shall maintain all books, documents, papers, accounting records, and other evidence required to support the reporting of payroll information for increased compensation to nonadministrative employees pursuant to subsection (4)(a) of this section for at least three years from the reporting deadlines described in subsection (4)(a) of this section for each respective fiscal year. Each home care agency shall make the information and materials available for inspection by the state department or its designees at all reasonable times.

(5) (a) The state department may recoup part or all of the funding resulting from the increase in the reimbursement rate described in section 25.5-6-1602 or 25.5-6-1603 if the state department determines that a home care agency:

  1. Did not use one hundred percent of any funding resulting from the rate increase toincrease compensation for nonadministrative employees, as required by section 25.5-6-1602 (2);

  2. Did not use eighty-five percent of the funding resulting from the rate increase toincrease compensation for nonadministrative employees, as required by subsection (3) of this section; or

  3. Failed to track and report how it used any funds resulting from the increase in thereimbursement rate as required by subsection (4) of this section.

(b) If the state department makes a determination described in subsection (5)(a) of this section, the state department shall notify the home care agency in writing of the state department's intention to recoup funds pursuant to subsection (5)(a) of this section. A home care agency has forty-five days after receiving such notice to:

  1. Challenge the determination of the state department;

  2. Provide additional information to the state department demonstrating compliance; or(III) Submit a plan of correction to the state department.

  1. The state department shall notify a home care agency in writing of its final determination after affording the home care agency the opportunity to take one of the actions specified in subsection (5)(b) of this section.

  2. The state department shall recoup from a home care agency any funding resultingfrom the increase in the reimbursement rate pursuant to section 25.5-6-1602 or 25.5-6-1603 that the home care agency received but did not use for compensation for nonadministrative employees if:

  1. The home care agency fails to respond to a notice of determination of the state department within the time provided in subsection (5)(b) of this section;

  2. The home care agency is unable to provide documentation of compliance; or

  3. The state department does not accept the plan of correction submitted by the homecare agency pursuant to subsection (5)(b)(III) of this section.

Source: L. 2019: Entire part added, (SB 19-238), ch. 319, p. 2965, § 1, effective May 28.


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