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Overtime Rule Changes for Employees of Churches(Complying with the FLSA in 2019 and Beyond)The Fair Labor Standards Act (FLSA) is the federal statute that mandates minimum wage and overtime to most organizations in the United States. Since virtually all churches are subject to overtime rules, these proposed changes in regulations will require many to amend their policies and procedures on overtime pay. This paper will attempt to answer pertinent questions about the changes and the effect on churches in a short and easy to understand format. 1) Does the FLSA apply to churches?Yes, churches are subject to FLSA rules just like other organizations.2) What is the new minimum salary threshold for exempt employees?The 2019 regulation changes the minimum salary level to $684 per week or about an annual salary of $35,568 effective January 1, 2020. (The prior minimum level was $455 per week).3) How will this change affect the ministerial exception? The new rules will have no effect on the ministerial exception that applies to churches and the FLSA.4) How will this change affect salaried employees?The new regulation will affect salaried employees of churches that do not fall under the ministerial exception. Administrative personnel would be affected if their pay falls below the new required level. Also, preschool or church day school teachers are not subject to the new salary minimum. 5) How will this change affect exempt and non-exempt classifications?All exempt employees must be compensated by a weekly salary that is guaranteed regardless of the number of hours actually worked. This does not change. Non-exempt employees will be paid hourly and qualify for overtime pay if working more than 40 hours per week. This also does not change.6) How many hours can a salaried employee be required to work?Exempt employees should not be tracked by number of hours actually worked. However, some records do need to be kept. Specifically, there should be a record of the time of day and days of the week when the employee’s workweek begins. Total wages paid each pay period should be tracked as well as paid time off (PTO).The FLSA is a complex law. This paper has not attempted to address every issue that may arise but only addresses frequently asked questions from churches concerning changes in the law. If you need further information or clarification please contact Jim Hylton at HYPERLINK "mailto:jhylton@"jhylton@ or call the office at 336-759-3456 Ext 213.

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