UCCS has put plans on hold to implement new federal labor rules that would have affected pay and overtime for about 75 UCCS employees.
The new rules were the result of changes to the federal Fair Labor Standards Act and were expected to go into effect Dec. 1. But a federal judge in Texas placed a preliminary injunction in late November on implementation of the rules.
The rules changes were designed to ensure that salaried employees are paid equitably and would have raised the salary threshold that determines, in part, which employees are eligible for overtime pay.
At UCCS, positions that could be affected include athletic coaches, resident directors, financial aid counselors and academic advisors. Employees whose primary duty is teaching are exempt, but defining what “teaching” is brings a position like coach into play, said Susan Watson, acting director, Human Resources Department.
The UCCS Human Resources Department had been working with managers to determine how the new rules would impact their areas and evaluating which positions could be affected, Watson said. The federal salary level for determining overtime was last changed in 2004.
The Fair Labor Standards Act changes would have applied to what’s called the salary level test. That test is used, along with other tests, to determine which employees are eligible for overtime pay. Previously, the salary level was $23,660 per year, or $455 per week. Employers could pay employees on a salary basis, without overtime, starting at that salary level, assuming the position met other federal labor criteria.
Starting in December, the new salary level would have been $47,476 per year, or $913 per week.
After the Fair Labor Standards Act rule changes were announced, employers across the country were determining whether to raise the pay of affected salaried employees. Raising the salaries of the approximately 75 affected UCCS positions would cost the university about $500,000, Watson said. Another option for employers would be to make those positions eligible for overtime pay after 40 hours worked in a work week.
After the Texas judge’s action last month, most employers have shelved plans to make salary adjustments and shift some employees to overtime.
“We will evaluate the situation and any potential opportunities and update affected employees if the situation changes,” Susan Szpyrka, senior vice chancellor, Administration and Finance, said in a campus email after the judge’s ruling.
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