PERSONAL SUPPORT SERVICES WAGE ENHANCEMENT Questions and Answers

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1 PERSONAL SUPPORT SERVICES WAGE ENHANCEMENT Questions and Answers Overarching 1. What is the objective of Year 3 of the Personal Support Worker (PSW) Enhancement Initiative? The fiscal year represents the third and final year of the staged implementation of the Government s ongoing PSW Wage Enhancement Initiative (Initiative), a component of the broader PSW Workforce Stabilization Strategy. The Initiative was introduced in the fiscal year in order to improve the care of seniors in their homes and communities by investing in the recruitment and retention of the PSW workforce. Through the Initiative, the Government has established ongoing requirements for hourly wage increases for eligible individuals providing Local Health Integration Network (LHIN) funded Personal Support Services (PSS) in the Home and Community Care (HCC) sector, as well as an ongoing new minimum base wage of $16.50 per hour for individuals providing LHIN funded PSS in the HCC sector. 2. How is Year 3 ( ) of the PSW Wage Enhancement Initiative being implemented? All individuals providing LHIN funded hours of PSS in the HCC sector are eligible to receive the $1.00 wage increase up to a maximum of $19.00 per hour. PSWs earning $19.00 per hour and above as of April 1, 2016 will not be eligible for the increase. See the following examples below for greater clarity. a. If an individual s current rate of pay as of April 1, 2016 is $17.00 per hour, a wage increase of $1.00 per hour must be applied by the employer to all LHIN funded hours of PSS provided by that individual. b. If an individual s current rate of pay as of April 1, 2016 is $18.50 per hour, a wage increase of $0.50 per hour must be applied by the employer to all LHIN funded hours of PSS provided by that individual. c. If an individual s current rate of pay as of April 1, 2016 is $19.00 per hour and above, no wage increase is required to be applied by the employer. 1

2 3. Can my employer choose not to pass on the wage increase? Eligibility Under the terms of the Ministry of Health and Long-Term Care (the ministry )-LHIN accountability agreement, it is required that all LHINs will comply with directives issued by the ministry and ensure their health service providers are compliant with those directives as well. Employers that received funding for the wage enhancement initiative in and will continue to receive the funding required for the full implementation of these wage increase in They will be expected to continue to provide the wage increases initiated in and in accordance with the ministry s Personal Support Services Wage Enhancement Directive and Addenda. In , the ministry issued a 2016 Directive Addendum to the LHINs to set out the requirements for Year 3 ( ). The 2016 Directive Addendum builds on the wage increase and minimum base wage requirements set out in the 2014 Directive as well as the 2014 and 2015 Directive Addenda. 4. Who is eligible to receive this wage increase? In accordance with the ministry s PSS Wage Enhancement Directive to LHINs, individuals are eligible for the PSW wage increase if they provide LHIN funded PSS in the HCC sector on behalf of: Service Providers who provide LHIN funded PSS under contract with Community Care Access Centers (CCAC); and Other HCC agencies that provide LHIN funded PSS, including: o LHIN funded hours for PSS provided by individuals under the ministry s policy Self-Managed Attendant Services in Ontario Direct Funding Pilot Project Policy Guidelines administered by the Centre for Independent Living in Toronto; o LHIN funded hours for PSS provided by individuals as part of an Adult Day Program provided by an Approved Agency under the Home Care and Community Services Act, 1994 (HCCSA); and o LHIN funded hours for PSS provided by individuals, specifically for respite as part of Caregiver Support Services provided by an Approved Agency under the HCCSA. 2

3 The increase applies only to direct hours of work providing LHIN funded personal support services within the meaning of the Home and Community Care Services Act, 1994 in the HCC sector and does not apply to indirect hours of work (e.g. sick time, training time, travel time). 5. How will I know if I am eligible for the Year 3 wage enhancement? Individuals eligible for this wage increase are to be provided with written notification of their new hourly wage rate by their employer by no later than July 1, Individuals should speak to their employers to determine their eligibility. If you believe you are eligible for the wage increase and did not receive a notification from your employer, you may wish to discuss your individual circumstances with your employer. 6. Who is not eligible to receive this wage increase? This wage enhancement initiative does not apply to persons who provide PSS in Long- Term Care Homes or Hospitals. It also does not apply to non-lhin funded PSS (i.e. private care). Additionally, services provided by LHIN funded agencies in the HCC sector that are not PSS (within the meaning of the Home and Community Care Services Act, 1994) are not to receive the hourly wage increase (e.g. homemaking services). 7. Why are PSWs who work in mental health/supportive housing not considered eligible to receive the wage increase? The PSW Wage Enhancement Initiative is targeted to individuals providing LHIN funded PSS (as defined in the Home Care and Community Services Act, 1994) delivered in the HCC sector. 8. Are PSS provided as CCAC approved services in retirement homes included as part of the PSW Wage Enhancement funding? All LHIN funded personal support services provided by a CCAC contracted service provider organization are eligible for the wage enhancement, including those services delivered in a retirement home setting. 3

4 9. Will employees who are sub-contracted or casual workers be eligible to receive the $1.00 wage increase? The wage increase applies to LHIN funded hours of PSS in the HCC sector irrespective of casual, part-time or sub-contracting agency status. 10. What about PSW work that is not done in the home like travel and educational training? The increase applies only to direct hours of work providing LHIN funded PSS (within the meaning of the Home and Community Care Services Act, 1994) in the HCC sector and does not apply to indirect hours of work (e.g. sick time, training time, travel time). The Personal Support Services Wage Enhancement Directive and Addenda specify the types of PSS hours to which it applies, as well as the types of providers that are subject to the Directive. Specific instructions about how to report all services, including PSS, have been provided to CCAC contracted service providers and LHIN funded HCC agencies subject to the Directive and Addenda. If you have questions about your eligible hours of service, you may wish to discuss your individual circumstances with your employer. 11. Do individuals have to possess a PSW certificate to be eligible for the new wage enhancement and minimum wage? The wage enhancement and new minimum base wage applies to individuals providing LHIN funded PSS in the HCC sector on or after April 1, Eligible workers do not have to complete a PSW educational certification course. 12. Is an individual eligible if they possess a PSW certificate but are not currently providing PSS? The wage enhancement and new minimum base wage apply only to direct hours of work providing LHIN funded PSS in the HCC sector. 13. Does the wage enhancement apply to PSWs who are entitled to pay increases through collective agreements or employment contracts (e.g. merit increases)? The hourly wage increase is to apply over and above any current wages and future wage increases or entitlements available to individuals providing LHIN PSS through collective agreements or employment contracts in effect on April 1, 2016 (e.g. general 4

5 wage increases, wage grid movement or step provisions, merit, any other planned wage increases), including those set out in pay equity plans. 14. Will an eligible individual who has been providing PSS after April 1, 2016 receive the wage enhancement if they have left the organization before the wage enhancement is applied? All individuals who provide LHIN funded PSS in the HCC sector on or after April 1, 2016 are eligible. If an individual leaves the organization before the increase is applied in July 2016, the employer would be responsible for ensuring retroactive payment is provided to that individual. This would include a wage increase with a minimum of no less than $16.50 per hour during the period between April 1, 2016 until the last day of employment. Implementation 15. When should eligible individuals receive the wage enhancement? The ministry s Personal Support Services Wage Enhancement Directive Addendum 2016 requires that: The wage increase applies to LHIN funded PSS hours worked on or after July 1, 2016; and Retroactive payment for LHIN funded PSS hours worked between April 1, 2016 and June 30, 2016 is to be paid in July How will the government ensure that employers provide the wage increase to PSWs and do not use wage enhancement funding for some other purpose? By no later than August 15, 2016, health service providers are required to confirm compliance with the 2016 Directive Addendum by completing Certifications of Compliance to the LHINs (and to CCACs). In addition, PSW Wage Enhancement Initiative funding will be reconciled as part of the ministry s annual settlement process and audits undertaken as deemed necessary. 5

6 Employer-Specific 17. Why have some employers not accepted government funding to provide the wage increase? Any questions about employers participation in the PSW Wage Enhancement Initiative should be directed to the employer. 18. The organization I work for has opted-out / not signed up to receive the PSW Wage Enhancement funding. What are you going to do when employers are not providing the wage increase to eligible employees? The ministry and LHINs will continue to work with these employers to ensure compliance with the ministry s Directive and Addenda. Non-compliance with the Directive and Addenda may impact an employer s eligibility to continue receiving LHIN funding for services in the HCC sector. The ministry considers non-compliance with the Directive to include the following: LHIN funded organizations that have accepted funding for this initiative but have not, as yet, submitted their Certification of Compliance to the LHIN; and Eligible LHIN funded organizations that have not signed back their amended agreement to the LHIN. 19. Can the employer who is paying over $19.00 per hour receive this funding and apply it to other cost items, such as pay equity plans or training? Funding for the PSW Wage Enhancement Initiative will be provided to support an increase of up to a maximum rate of $19.00 per hour. Funding is to be used exclusively to increase hourly wages and support 22.7% towards employer statutory contributions in accordance with the ministry s Personal Support Services Wage Enhancement Directive and Addenda (i.e Directive Addendum, 2015 Directive Addendum and 2016 Directive Addendum). 20. Does the government intend to support employers by funding statutory benefit costs (e.g. CPP, EI, EHT, Holiday Pay)? The Government is providing funding towards statutory contributions for employer benefits, an additional 22.7% of employee wages in connection with the PSW Wage Enhancement Initiative. 6

7 21. In addition to compensation, what are the other components of the broader strategy? June 2016 In addition to compensation, the ministry is working on additional initiatives through its PSW Workforce Stabilization Strategy to address recruitment and retention issues through several other initiatives, including: Support for new PSW graduates to help them transition successfully into practice in the Home and Community; Development of measures to enhance full-time and permanent employment for PSWs in the Home and Community; Encouraging leadership capacity in the PSW profession; and Further examining other challenges affecting Home and Community recruitment and retention. 22. Will the ministry integrate the PSW wage enhancement funding into the planned harmonized CCAC contract rate for PSS? In June 2015, the ministry communicated that it was considering integrating the PSW wage enhancement funding into the CCAC contract rates for implementation in the fiscal year. To support this goal, the ministry established a Contracting and Service Delivery Working Group to advise on the methodology, approach and implementation considerations that includes many sector stakeholders. Recognizing the complex nature of CCAC contract rates, further work is required prior to implementing a common PSW visit rate; as a result, there will be no integration with Year 3 of the PSW wage enhancement funding. Further information about CCAC contract rate harmonization will be forthcoming in summer

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