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NJ S1128

NJ S1128
Requires Director of Division of Developmental Disabilities to align rates for self-directed employees with maximum service provider rates.

summary

Introduced
01/13/2026
In Committee
01/13/2026
Crossed Over
Passed
Dead

Introduced Session

2026-2027 Regular Session

Bill Summary

This bill requires the Director of the Division of Developmental Disabilities (division) in the Department of Human Services to ensure that there is parity between service provider and self-directed employee rates, regarding approved services funded by the division and provided to eligible individuals. Under the bill: "self-directed employee" means a person who is recruited and offered employment directly by an individual who is eligible to receive services funded by the division, or the individual's authorized representative, to perform approved services, for which the self-directed employee is qualified; and "service provider" means an entity or individual who enters into a contract with the division to provide approved services to individuals who are eligible to receive services funded by the division. The director's efforts are to include, at a minimum, setting the rates contracted between the division and a service provider as the maximum self-directed employee rates, provided that the rates are for the same service, duration of time, and level of care. Currently, under the self-direction service model, the individual, or the individual's authorized representative, offering employment to the self-directed employee determines the employee's hourly rate, within a "reasonable and customary" framework. The individual's service budget must be able to support this rate. The comparable service provider rates are specific by amount and are generally much higher. For example, the hourly base rate for high acuity community based supports provided by a service provider is approximately $51.00, while the hourly rate for the same service provided by a self-directed employee is "reasonable and customary." The current threshold for "reasonable and customary" is between approximately $20 and $25 per hour. Under this bill, the maximum hourly rate for a self-directed employee providing community based supports would be equal to the hourly service provider rate of approximately $51.00, provided that the level of care is identical for both services.

AI Summary

This bill mandates that the Director of the Division of Developmental Disabilities must ensure that the hourly pay rates for "self-directed employees"—individuals hired directly by eligible individuals or their representatives to provide approved services—are equal to the maximum rates paid to "service providers," which are entities or individuals contracted by the division to offer the same services. This change aims to create parity between the two payment structures, meaning that if a service provider is paid $51 per hour for a specific service and level of care, a self-directed employee providing the identical service and level of care can be paid up to that same $51 per hour, a significant increase from the current "reasonable and customary" rate of $20-$25 per hour for self-directed employees. The bill also requires the Commissioner of Human Services to seek necessary state plan amendments or waivers to secure federal funding and to adopt regulations to implement these changes, which will take effect four months after enactment.

Committee Categories

Health and Social Services

Sponsors (6)

Last Action

Introduced in the Senate, Referred to Senate Health, Human Services and Senior Citizens Committee (on 01/13/2026)
(2 Companion Bills)

bill text

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bill summary

Document Type Source Location
State Bill Page https://www.njleg.state.nj.us/bill-search/2026/S1128
BillText https://pub.njleg.gov/Bills/2026/S1500/1128_I1.HTM
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