Increase in Salary Threshold for FLSA Exempt Status

COLLEGE PROVOSTS
DEANS
DEPARTMENT AND PROGRAM CHAIRS
MRU AND ORU DIRECTORS
UNIVERSITY LIBRARIAN
VICE PROVOSTS

Re: Increase in salary threshold for FLSA exempt status

Dear Colleagues:

I’m writing to share a recent government ruling that impacts some of our part-time nonfaculty academics, slightly increasing the number of academics that are paid biweekly, report hours worked, and are eligible for overtime pay.

The United States Department of Labor (DOL) recently approved a change in the federal Fair Labor Standards Act (FLSA), effective January 1, 2020, which increases the minimum salary threshold for overtime-exempt employees:

Previous threshold: $455 per week (equivalent to $24,660 per year for a full-year worker)
New threshold: $684 per week (equivalent to $35,568 per year for a full-year worker)

This minimum applies to salary earned per week by the employee, regardless of the number of days or
hours worked.

This rule change applies to nonfaculty, nonstudent academic appointees in research or administrative positions, as they are subject to the minimum wage and overtime provisions of the FLSA, and must meet both the duties test and the salary test in order to qualify for exemption from the rule.

UCSC nonfaculty academics with existing appointments who will no longer meet both the new salary threshold and the duties test are being reclassified as nonexempt overtime-eligible effective December 1, 2019. While slightly earlier than the federal deadline to comply, this proactive implementation date avoids unnecessary risks that would be involved in making this change in the midst of the campus cutover to the new UC-wide payroll system, UCPath, and provides employees with a smoother transition between pay cycles, as the monthly and biweekly cycles share a November 30, 2019 pay period end date. Divisional academic personnel offices have already begun preparing for the change and notified affected employees and their supervisors.

Our Academic Salary Scales are not affected by this DOL rule change.

Please ensure this information reaches the appropriate individuals in your unit(s), and direct questions to your divisional academic personnel coordinator, or to the Academic Personnel Office at apo@ucsc.edu.

cc:
Director Beach, OSP
Director Bono, Library
VC Research Brandt
iCPEVC Kletzer
Chancellor Larive
AHR Manager Sanchez, UNEX
Director Schiffner, ELR
AVC Stein, SHR
College Academic Programs Coordinators
Department and Program Managers
Divisional Academic Personnel Coordinators
ORU and MRU Director Assistants
Administrative Records