New California DDS Supported Employment Fees for DOR Waitlisted Individuals
California DDS has created new authorization and payment rules for supported employment providers serving Regional Center individuals who are waiting for vocational rehabilitation services from the Department of Rehabilitation. The rules took effect through DDS Directive D 2026 Employment 003, dated September 21 2026.
The change follows the Department of Rehabilitation Order of Selection that began August 31 2026. Under the directive, Regional Centers must fund appropriate employment services while an eligible individual is on the DOR waiting list. Supported employment providers can also claim three new milestone fees when the required documentation and billing conditions are met.
What the DOR Order of Selection changes
DOR uses an Order of Selection when it cannot serve every eligible vocational rehabilitation applicant immediately. DOR determines eligibility and assigns applicants to priority categories. DDS reported that all three priority categories were closed when it issued the directive, which means affected applicants were being placed on a waiting list before DOR services could begin.
Regional Centers must continue referring individuals to DOR. Once a referral has been submitted, the Regional Center may authorize supported employment immediately. DDS states that no additional waiting period or verification is required to authorize the service during the Order of Selection. Regional Center funding continues until the individual signs an Individualized Plan for Employment with DOR.
Who is affected
The directive applies to:
- Individuals already referred to DOR who are waiting for approval of new vocational rehabilitation services.
- Individuals referred to DOR while the Order of Selection remains in effect.
The directive does not apply to:
- Individuals who already have a signed Individualized Plan for Employment with DOR.
- Individuals receiving or eligible for DOR student services.
- Employment services not funded by DOR, including the Paid Internship Program, Tailored Day Services and Supported Employment Group services.
Services Regional Centers can authorize
DDS identifies Supported Employment Individual Placement under Service Code 952. The directive specifically names Job Development under subcode 1D0 and Job Coaching under subcode 1J0. Providers should confirm that the individual authorization matches the service, subcode, date range and Regional Center billing instructions before service delivery.
Three new supported employment fees
| Milestone | Amount | Subcode | Key condition |
|---|---|---|---|
| Intake fee | $360 | VR1 | Paid upon intake. Not payable if the same provider completed a supported employment intake for the individual during the previous 12 months. |
| Placement fee | $720 | VR2 | Paid when the individual is placed in competitive integrated employment. Not payable when the individual is placed with another person or people assigned to the same job coach during the same work hours. |
| Ninety day retention fee | $720 | VR3 | Paid after the individual maintains competitive integrated employment for 90 days. The same shared job coach and work hours exclusion applies. |
DDS states that these fees do not prevent providers from billing other eligible Supported Employment Individual Placement subcodes or receiving Competitive Integrated Employment incentive payments. For Self Determination Program participants, the three fees are paid outside the individual budget.
Documentation providers need
The Regional Center must verify that DOR assigned the individual to a category affected by the Order of Selection and placed the person on a waiting list. The provider must then submit documentation showing that the claimed milestone occurred. A reliable record should connect the eligibility evidence, service authorization, milestone and billing entry.
- DOR referral date and proof that the referral was submitted.
- DOR category and waiting list documentation supplied through the individual or Regional Center.
- Regional Center authorization with the correct service code, subcode and effective dates.
- Intake date and the prior 12 month provider intake check for VR1.
- Employer, job title, start date and job coach assignment for VR2.
- Employment continuity and the verified 90 day milestone date for VR3.
- Evidence that the placement does not fall within the shared job coach and same work hours exclusion.
Billing and workflow steps
- Confirm the DOR referral and waiting list evidence before treating the new fees as billable.
- Create a separate milestone record for intake, placement and retention rather than relying on a general progress note.
- Place a billing hold on VR1, VR2 or VR3 until the required evidence is attached and reviewed.
- Track the 90 day retention date from the verified employment start date and document any interruption.
- Retain the authorization, service notes, employer information, milestone evidence and submitted invoice together for audit review.
Evidence boundary
The directive reflects DOR category status as of September 21 2026. DOR may open or close priority categories later. Providers should check the current DOR Order of Selection page and obtain written Regional Center authorization before relying on the fees. The directive does not make every supported employment participant eligible.
Frequently asked questions
Can a Regional Center require an additional wait before authorizing service
DDS says the Regional Center may authorize employment services immediately after documentation shows that a DOR referral was submitted. No additional waiting period or verification is required for the supported employment authorization during the Order of Selection.
Are the new fees included in the normal service rate
No. DDS describes the three milestone fees as additional provider fees. Providers may still claim other eligible Service Code 952 subcodes and may remain eligible for Competitive Integrated Employment incentive payments.
Does the directive affect people who already have a DOR employment plan
No. It does not apply to an individual who already has a signed Individualized Plan for Employment with DOR.
Can a provider bill VR1 more than once
The directive bars the intake fee when the same provider completed a supported employment intake for the individual during the previous 12 months. Providers should document the lookback before billing.
How CareAutomate can help
CareAutomate supports configurable supported employment workflows, authorizations, service notes, milestone tracking, documentation review and billing preparation. A provider can use structured records to connect the DOR referral, Regional Center authorization, intake, placement and 90 day retention milestone. CareAutomate does not determine fee eligibility or replace written guidance from DOR, DDS or a Regional Center. Book a demo using your current Service Code 952 workflow, and we will confirm what is available today and what requires configuration or development.
Official sources
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