On November 15, 2024, a Federal Judge vacated the Department of Labor’s Fair Labor Standards Act (FLSA) April 2024 final rule on overtime exemptions. The Department of Labor (DOL) had issued revised regulations on April 23, 2024, that increased the minimum salary threshold for overtime-exempt employees to $844 per week effective July 1, 2024, and to $1,128 per week effective January 1, 2025. The Federal Judge reinstated the minimum salary threshold, which had been in effect since January 1, 2020.

The University will be taking two separate approaches to DOL’s rule, depending on whether the employees is an academic appointee or a staff employee.

Staff Employees

In 2016, the DOL proposed an overtime rule increasing the minimum salary threshold for exempt employees to $913 per week (approximately $47,476 per year). This proposed increase was challenged in the courts and was eventually enjoined by a federal judge. Since the University had already implemented the increased salary level, the decision was made to retain the higher salary threshold for staff employees. In October 2024, the State of California implemented health care worker exempt minimum wage of $71,760 per year (calculated as the greater of $23 per hour or 2 times the State of California minimum wage, which is $16.50 per hour effective January 1, 2025). 

With the recent reinstatement of the January 1, 2020 minimum salary threshold, the University has decided to retain $913 per week (approximately $47,476 per year) for staff employees. For staff healthcare employee who are exempt, we must continue with the $71,760 per year minimum. 

Some exempt staff employee are not subject to the salary level test and are exempt from overtime even if they earn a salary that is below the salary level. For example, University coaches who have a primary duty of teaching or instructing student athletes are overtime-exempt even if they earn less than the $913 salary threshold. For coaches primarily engaged in administrative duties, however, the salary threshold for $913 per week applies. 

If you have any questions, please contact the Compensation Team at Compensation@ucsd.edu.