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DWRS compensation thresholds policy

Beginning Jan. 1, 2029, home and community-based Services (HCBS) provider organizations, except assisted living facilities, will be required to spend a specified percentage of their DWRS revenues to compensate direct care staff. Providers had previously been required to meet certain threshold levels in statute, but the Legislature changed requirements in the 2025 special session to postpone implementation to Jan. 1, 2029

Direct care staff compensation may include costs such as:

  • Wages
  • Taxes
  • Workers' compensation policies
  • Insurance premiums paid by the employer
  • Other items of monetary value provided to direct care staff or other staff while they are providing direct care.

Some HCBS provider organizations might also offer other benefits to their employees that aren’t explicitly listed in statute. These may include employee assistance programs, self-funded staff compensation or self-insured health insurance benefits. While these costs can’t be allocated directly to individual employees, they may still be considered part of a direct care worker compensation package.

Data collected from the DWRS cost reporting system will be used to confirm HCBS provider organizations’ adherence to this required compensation threshold policy. DHS is required to research and propose appropriate threshold levels to encourage adequate compensation of direct support professionals. According to the Special Session law that passed in 2025, DHS must make the recommendations to the Legislature by Jan. 15, 2028.

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