The university confirmed with FOX40 Katehi will be teaching at a salary which is comparable to the one she earned as chancellor.
This after the university paid a million dollars to investigate her, and after she was allowed to take a year off paid with benefits.
"She always struck me as someone who was pretty well connected, that could always weasel her way out of something," said UC Davis student Jack Quinn.
Few students still on campus for the summer wanted to hear Katehi will be getting paid more than $300,000 in a nine month contract.
"Not too pleased with it, especially when they're raising tuition on students who are putting in a lot of hard work and we're the reasons that these guys have jobs," said student Michael Warnert.
Also not very pleased is one of Katehi's biggest critics, Assemblyman Kevin McCarty. He posted on Facebook Saturday saying, "This golden parachute deal is an insult to students and families struggling to afford college."
McCarty told FOX40 he's looking into the language in the university's settlement agreement. He's unsure as to why Katehi is entitled to anything past the initial year pay after her resignation.
"At least she's out of the chancellor's office," Quinn said.
According to UC Davis' website, Katehi will be teaching courses in electrical and computer engineering, as well as women and gender studies.
"I'll be looking out for her class and hoping to avoid it for sure," Warnert said.
Considering the campus protests and office camp-ins surrounding Katehi last year, returning students may question current university leadership even more in the fall.
"If I were acting chancellor, I would have given her a severance package and told her not to come near the campus again," Quinn said.
Due to the weekend, FOX40 could not reach Katehi nor her attorney for comment.