FLSA Determination

In 2016, the DOL proposed an overtime rule increasing the minimum salary threshold for exempt employees to $913 per work (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 a healthcare worker exempt minimum wage of $71,760 per year (calculated as the greater of 150% of $23 per hour or 2 times 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 employees who are exempt, we must continue with the $71,760 per year minimum. 

Some exempt staff employees 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 above. 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 of $913 per week applies.

If you have any questions, you may contact your local Human Resources.

Based upon the revised overtime rule effective July 1, 2024 and thereafter, non-faculty, non-student academic appointees in research or administrative positions must receive a salary of at least the minimum salary threshold per week (for all weeks in which the appointee performs any work, regardless of the number of days or hours worked) to qualify as exempt under the FLSA. This means that in order to remain exempt, both full-time and part-time non-teaching academic appointees must earn at least the minimum salary threshold per week. Academic appointees who no longer meet both the new salary threshold and the duties test will be designated as FLSA non-exempt and overtime-eligible. 

The minimum salary threshold per week will be increased as follows:

• July 1, 2024: $844 per week (equivalent to $43,888/year)

Teaching titles are not impacted by this ruling as they are exempt from this salary requirement.

Please see the FLSA Determination Process for Students with Multiple Appointments (PDF file). Further resources include the FLSA Determination Tracking Sheet(link is external) and the FLSA Determination Matrix(link is external)

For appointees to non-exempt staff titles who will hold a Lecturer appointment, please contact the Academic Personnel Office at appolicy@berkeley.edu(link sends e-mail) to determine the FLSA status.

Please contact appolicy@berkeley.edu(link sends e-mail)with any questions regarding academic appointees.

Note: When a GSR position is combined with a Student Assistant position, both positions will be non-exempt, bi-weekly pay schedule (regardless of FTE or appointment duration). Refer to the Process for Students with Multiple Appointments document above (section II. A. c.)

On April 23, 2024, the Department of Labor (DOL)(link is external) issued the highly anticipated final rule to alter the overtime pay regulations under the Fair Labor Standards Act (FLSA). The rule increased the minimum salary threshold to $43,888 ($844 per week) effective July 1, 2024. For Staff appointments, the University continues to retain the higher salary threshold of $913 per week (equivalent to $47,476 per year for a full-year employee).

The DOL approved a change in the federal Fair Labor Standards Act (FLSA)(link is external), to be effective January 1, 2020. The revised rule increases the federal minimum salary threshold for overtime-exempt employees from the currently enforced level of $455 per week (equivalent to $24,660 per year for a full-year employee) to $684 per week (equivalent to $35,568 per year for a full-year employee).

Office of the President November 2019 Communication (PDF file)

The University took two separate approaches to the DOL’s final rule change, depending on whether the employee is in a staff appointment or an academic appointment.

Staff
The University retained the higher salary threshold of $913 per week (equivalent to $47,476 per year for a full-year employee) for staff appointments.

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

Staff employees who hold a part-time Exempt position or a combination of Exempt positions resulting in a salary of less than $913 per week, will continue to be considered FLSA Non-exempt, and eligible for overtime consideration, if otherwise eligible.

Academic
The Academic Personnel Office (APO)(link is external) contacted Deans' offices directly regarding potential changes to academic appointments. For more information on Academic appointments see below "Academic Appointees Only."

In 2016, the U.S. Department of Labor (DOL)(link is external) 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 court and eventually enjoined by a federal judge who issued a nationwide preliminary injunction blocking implementation of the U.S. DOL’s rule and employers were no longer required to meet the December 1, 2016 implementation deadline. UC, like other large organizations, had already implemented the increased salary level for staff employees and chose to maintain this salary level ($913 per week / $47,476 per year) while we awaited the final ruling.

When departments need to hire an employee who already holds another part-time position on campus, the hiring manager should work with their HR Partner(link is external) to ensure the employee will only have one FLSA status (either Exempt or Non-exempt) for all active appointments.

General Process:

1. Department’s HR Partner (of new job) should check UCPath to see what other active appointments the employee holds. 

1. If the existing job is a staff appointment, refer to the MATRIX (PDF file)

2. If the existing job is an academic appointment, refer to the MATRIX(link is external)

2. The HR Partner (of new job) should review all active appointments 

1. Job title

2. Start Date

3. End Date

4. FTE

5. FLSA (designated, per TCS and/or existing, in UCPath)

6. Pay Schedule (monthly or biweekly - of existing job(s))

7. Union Code (PPSM or Union Represented)

1. If any (existing or new) job is represented by a bargaining unit agreement, please contact Labor Relations who will send a union notification letter regarding FLSA override. 

3. After conducting an analysis of all jobs, if the HR Partner (of new job) determines the FLSA of current active appointment(s) need to change, the HR Partner should contact the existing department’s HR Partner to then process the FLSA (and Pay Schedule) change, as soon as possible. 

1. Existing Department’s HR Partner is responsible for communicating to the employee and manager about the current job changing FLSA and Pay Schedule, as well as any potential impacts to timekeeping (due to the new job). 

2. If the HR Partner (of new job) determines the FLSA of current appointment(s) will drive the new jobs FLSA status, the HR Partner needs to ensure the employee and manager (of new job) understand the FLSA and Pay Schedule (as well as timekeeping instructions). 

4. Each UC employee must have only one FLSA and Pay Schedule for all active appointments.

5. If a positions’ designated FLSA is overridden (due to another active appointment being the primary job), proper communication should be provided to both the employee and the manager. This communication should come from the HR Partner or the Berkeley Regional Services.

6. View and complete the FLSA Determination Form (DOCX file) when a complex exception review from People and Culture Compensation is needed. Please complete the form in its entirety and submit to compdesk@berkeley.edu(link sends e-mail).

Since a change in FLSA status will likely result in a change in pay cycle, advanced planning is essential. Keeping the employee informed about the potential impacts this change will have on their benefit deductions, completion of their timesheet via CalTime, as well as leave accrual and usage is critical.   

The offer letter generated from Recruitment(link is external) should include details about the FLSA status as well as the pay cycle. The HR Partner(link is external) will be responsible for coordinating the necessary updates for HCM and CalTime, as well as ensuring the employee is aware of any changes associated with new CalTime procedures due to a new pay cycle.

FLSA FAQs for Part-Time Employees with Multiple Positions (PDF file)

View matrix on FLSA Reference Guide for Staff and Non-Senate Titles (PDF file)

View matrix on FLSA Reference Guide for ASE/GSR/Student Asst(link is external)

View the FLSA Determination Process for Students with Multiple Positions (PDF file)(link is external)

View the FLSA Determination ASE Tracking Sheet(link is external)

View the FLSA Determination Form (DOCX file) to be submitted for exceptional reviews (for multiple staff appointments) by Central HR Compensation.

View the U.S. Department of Labor Wage and Division Fair Labor Standards Act(link is external) reference guide here.

View the Financial Aid Work Study Information and FAQs relating to UC Path(link is external)

View the template letters for notifying employees (PDF file)

View the letter details for notifying student assistants converting to Exempt FLSA (DOCX file)

Employees with multiple part-time jobs must have a single FLSA status and be on one pay schedule. UCPath does not permit an employee to concurrently have an active Exempt and Non-exempt job. Assigned HR Partners and Academic Personnel Analysts(link is external) will continue to be responsible for ensuring that the correct FLSA and pay schedule is assigned to impacted employees. Please ensure that impacted employees and supervisors are notified in writing about any changes to their FLSA status and/or pay schedules, along with information about how to submit their timesheets, if applicable.

Time Reporting Reminders:

• Non-exempt biweekly paid employees report hours worked and leave taken via CalTime(link is external)

• Exempt monthly paid employees may report all unpaid and paid leave taken via CalTime(link is external)

• Exempt employees that have been assigned to a biweekly pay cycle in UCPath are not currently permitted in CalTime(link is external) and will need to submit manual timesheets

• Exempt employees that report hours worked are currently not permitted in CalTime and will need to continue to submit manual timesheets

• Readers and tutors are not currently configured in CalTime(link is external) and will need to continue to submit manual timesheets if they have a variable appointment

• Student Assistants who hold both a casual restricted appointment along with an Academic Student Employee (ASE) position (Grad Student Instructor, Reader, Tutor), or Grad Student Researcher will not be able to use CalTime(link is external) to report time, and will need to continue to submit their timesheets manually.

If you have specific questions, please email CalTime@berkeley.edu(link sends e-mail) for timekeeping questions, Compdesk@berkeley.edu(link sends e-mail)for staff-related questions, or APO(link is external) at Appolicy@berkeley.edu(link sends e-mail)for academic-related questions.