Dominguez v. Schwarzenegger

270 F.R.D. 477, 23 Am. Disabilities Cas. (BNA) 667, 2010 U.S. Dist. LEXIS 62704, 2010 WL 2348659
CourtDistrict Court, N.D. California
DecidedJune 8, 2010
DocketNo. C 09-02306 CW
StatusPublished
Cited by6 cases

This text of 270 F.R.D. 477 (Dominguez v. Schwarzenegger) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dominguez v. Schwarzenegger, 270 F.R.D. 477, 23 Am. Disabilities Cas. (BNA) 667, 2010 U.S. Dist. LEXIS 62704, 2010 WL 2348659 (N.D. Cal. 2010).

Opinion

ORDER GRANTING PLAINTIFFS’ MOTION FOR CLASS CERTIFICATION

CLAUDIA WILKEN, District Judge.

This case is about the implementation of cuts to the wages paid to In-Home Support Services (IHSS) providers, who provide in-home assistance to low-income elderly and disabled individuals through California’s Medi-Cal program. Plaintiffs are a proposed class of tens of thousands of individuals who currently receive assistance through IHSS and the unions who represent IHSS providers. Plaintiffs seek declaratory and injunctive relief to enforce (1) the procedural and substantive requirements of the Medicaid Act, 42 U.S.C. § 1396a(a)(30)(A) and (2) and the antidiscrimination provisions of the Americans with Disabilities Act of 1990, 42 U.S.C. § 12132 and Section 504 of the Rehabilitation Act of 1973, 29 U.S.C. § 794(a). In this motion, Plaintiffs seek certification under Federal Rule of Civil Procedure 23(b)(2) of a class composed of IHSS consumers residing in twenty-one counties1 and a subclass composed of IHSS consumers residing in Fresno county. State Defendants and Fresno Defendants filed separate oppositions to the motion. Having considered all of the papers filed by the parties, the Court grants Plaintiffs’ motion.2

BACKGROUND

In 1973, California established the IHSS program to provide assistance with the tasks of daily living to low-income elderly and dis[482]*482abled persons “who cannot safely remain in their homes or abodes of their own choosing unless these services are provided.” Cal. Welf. & Inst.Code § 12300(a). IHSS providers give services such as assistance with bathing, dressing, cooking, feeding, bowel and bladder care, self-administration of medication and cleaning. Id. § 12300(b), (c). Over 360,000 IHSS providers serve over 440,000 individuals in California. More than sixty-two percent of IHSS recipients are served by a relative.

IHSS is administered by the State’s counties. Fifty-six of California’s fifty-eight counties have established either a public authority (PA) or a non-profit consortium (NPC) to deliver IHSS services. Each of these fifty-six counties has created and maintains a registry from which service providers can be drawn. As of June 30, 2007, there were over 14,500 persons in county registries.3 These PAs and NPCs are considered employers of IHSS providers for some purposes, including collective bargaining agreements pertaining to providers’ wages and benefits; however, individual consumers hire, fire and supervise their own IHSS providers. Id. § 12301.6(c)(1).

Each county establishes the providers’ wages and benefits. Thus, the rates paid to IHSS providers vary by county. Because most IHSS consumers participate in California’s Medicaid program, the federal government pays for about sixty-two percent of the IHSS program’s costs.4 See 42 U.S.C. § 1396d(b). The State pays sixty-five percent and the county pays thirty-five percent of the remaining thirty-eight percent of the program’s costs. Cal. Welf. & Inst.Code § 12306. The State’s contribution, however, is subject to a statutory cap. Currently, the maximum state contribution is sixty-five percent of the non-federal share of a wage and benefit package of $12.10 per hour. Id. at § 12306.1(c)(d).

Wages and benefits are determined through the collective bargaining process at the county level. Once these wages and benefits are decided, they must be submitted to the California Department of Health Care Services to ensure that they comply with all applicable state and federal laws. Id. § 12306.1(a)-(b).

In response to California’s unprecedented budget crisis, on February 20, 2009, the Governor signed into law California Welfare and Institutions Code § 12306.1(d)(6). Scheduled to take effect July 1, 2009, the law would have reduced the State’s maximum contribution in wages and benefits from sixty-five percent of the non-federal share of an hourly rate of $12.10 to sixty-five percent of the non-federal share of an hourly rate of $10.10. This rate represents $9.50 for wages and $0.60 for benefits. Counties would not have to reduce wages and benefits and would be permitted to make up the difference between the State’s previous contribution and any reduction that would result from the State’s new maximum contribution.

Only counties that currently pay IHSS providers more than $10.10 per hour in wages and benefits would see a reduction in the State’s contribution to IHSS costs. At the time the complaint was filed, thirty-six of the fifty-six PAs and NPCs paid IHSS providers $10.10 per hour or less in wages and benefits. Thus, there would be no reduction in the State’s contribution to IHSS costs in a majority of the counties, including Los Angeles, where forty-two percent of all IHSS services are provided. Of the twenty-one counties that pay wages and benefits of more than $10.10 per hour to IHSS providers, twelve notified the State of their intent to reduce IHSS wages in proportion to the anticipated reduction in the State’s contribution. Of those twelve counties, Fresno is the only one named as a Defendant. The Fresno PA submitted a rate change request that hourly wages be reduced from $10.25 to $9.50 and benefits from $.85 to $.60. These reduced rates were to take effect July 1, 2009.

[483]*483In their complaint, Plaintiffs allege that the wage reduction provided in § 12306.1(d)(6) would have a substantial financial impact on tens of thousands of IHSS providers throughout the State. Plaintiffs’ expert, Economics Professor Candace Howes, estimates that approximately 4,000 providers will leave IHSS employment because of the rate reduction and that 2,700 IHSS consumers will be unable to find replacements. Howes estimates that over one-fifth of these consumers will try to remain at home without assistance from an IHSS provider, which could be dangerous for the consumer. Roughly half of those unable to find replacements (approximately 1,400) may have to enter sMlled-nursing facilities or other residential institutions.5

On June 4, 2009, Plaintiffs filed this class action complaint and moved for entry of a preliminary injunction prohibiting State Defendants from implementing section 12306.1(d)(6) pending a final decision on the merits. On June 26, 2009, the Court granted Plaintiffs’ motion and found that they had demonstrated a strong likelihood of success on their first cause of action, that State Defendants had violated the federal Medicaid Act by failing to consider the factors set forth in 42 U.S.C. § 1396a(a)(30)(A) (Section 30(A)) before enacting section 12306.1(d)(6). The Court also concluded that, absent immediate injunctive relief, both IHSS consumers and providers would suffer irreparable harm as a result of the wage reductions caused by the implementation of section 12306.1(d)(6).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Ramirez v. The Geo Group, Inc.
S.D. California, 2019
Shaia v. Harvest Management Sub LLC
306 F.R.D. 268 (N.D. California, 2015)
Smith v. Microsoft Corp.
297 F.R.D. 464 (S.D. California, 2014)
Flores v. Anjost Corp.
284 F.R.D. 112 (S.D. New York, 2012)
Alonzo v. Maximus, Inc.
275 F.R.D. 513 (C.D. California, 2011)

Cite This Page — Counsel Stack

Bluebook (online)
270 F.R.D. 477, 23 Am. Disabilities Cas. (BNA) 667, 2010 U.S. Dist. LEXIS 62704, 2010 WL 2348659, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dominguez-v-schwarzenegger-cand-2010.