A federal judge in the Eastern District Court of Texas ruled to
strike down the Fair Labor Standards Act (FLSA) overtime final rule
that was set to take effect January 1, 2025. The ruling strikes down all components of the rule, meaning both the July and
January salary thresholds are no longer in effect, and the triennial automatic updates will not take place.
The decision applies to all covered employers and employees under the FLSA nationwide.
Systemwide Compensation is pausing the implementation of the FLSA salary basis test change
for all UC staff employees. Further official communication will be forth coming in the next couple of weeks.
The U.S. Department of Labor (DOL) announced a change to the Fair Labor Standards Act (FLSA) which sets overtime regulations for U.S. workers. The change affects who is eligible for exemption from the overtime provisions of the Act (also known as “exempt employees”). On January 1, 2025, the salary threshold for exemptions to the FLSA will increase to $1,128 per week.
What does this mean for UCI staff? Some exempt employees will no longer qualify for emption from the FLSA and will become non-exempt biweekly paid employees. Starting on January 1, 2025, to be exempt from the FLSA, a position must generally satisfy three tests: (1) perform exempt duties, (2) be paid on a salary basis*, and (3) be paid at least $1,128/week.
This means exempt employees who are paid below $1,128/week on January 1, 2025, will no longer qualify for exemption and will have to be reclassified to non-exempt. Under the FLSA, non-exempt employees are required to maintain records of all hours worked, which means these employees will have to complete timesheets. In addition, at UCI Campus and College of Health Sciences, non-exempt employees are paid on a biweekly basis (every two weeks) rather than a monthly basis (once a month).
* Predetermined amount of compensation each pay period that generally cannot be reduced because of variations in the quality or quantity of the employee’s work.
The new FLSA salary threshold applies to staff titles.* For information regarding academic positions, visit https://ap.uci.edu/compensation/flsa/.
PART-TIME EMPLOYEES BELOW THE NEW SALARY THRESHOLD
In addition to the titles mentioned above, part-time employees currently classified as FLSA exempt whose salaries fall below the new salary threshold of $1,128 per week will be reclassified to non-exempt. Actual salaries must be used. A calculator is provided to help part-time employees determine whether or not their salary falls below the new FLSA salary threshold.
*The salary level test does not apply to certain professionals, including: professors, lecturers, and other teachers whose primary duty is teaching; athletic coaches and assistant coaches if their primary duty is teaching and instructing athletes; undergraduate/graduate students engaged in research or extracurricular activities as they are not considered by DOL as employees; doctors and attorneys.
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MONTHLY pay rate: | |
| Appointment % time: (between 1 and 100) |
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For affected employees moving to
non-exempt biweekly paid
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