On Nov. 22 a federal district judge issued a nationwide preliminary injunction blocking implementation of the U.S. Department of Labor’s rule that nearly doubles the minimum salary level required for the executive, administrative, and professional overtime exemptions under the Fair Labor Standards Act. Following the ruling, the DOL issued a statement expressing that it disagreed with the decision and was considering all options. The DOL will likely appeal the court’s order, but it is uncertain how long an appeal may take. If the preliminary injunction pushes the implementation date past Jan. 20 the new administration may reopen and revise the overtime rule. 

Although this means that employers are no longer required to meet the Dec. 1 implementation deadline, the UC Office of the President provided guidance to Executive Vice Chancellors/Provosts, Vice Chancellors of Research, Vice Chancellors of Administration, Vice Chancellors of Administration, and Controllers at all campuses to proceed with any implementation plans already in place. In the coming months, we will be following further developments on the status of the DOL’s overtime rule, potentially revisiting some of the classification decisions made in the last few months, and engaging in consultation and communication with campuses.  

Along with this direction, there is a change to the FLSA exemption status for all future hires in the SRA 2 job code. External hires and internal transfers will only be hired into job code 9617, SRA 2 non-exempt.  These employees will be eligible for overtime and all other provisions of FLSA. Non-exempt, overtime-eligible employees must be paid no less than the minimum wage and a premium rate for any hours beyond 40 in a work week.

All current employees in the SRA 2 (exempt), job code # 9612 that meet the requirements of the Dec. 1 DOL changes will remain in the exempt position. Please contact your HR Generalist with any questions. You can find information on the recent FLSA legislation here.