Updated December 5, 2024.
A federal court recently struck down a new Department of Labor regulation that increased the salary threshold for overtime exemptions, which could have affected ministry employers and employees alike. In this webinar, GCFA’s HR Department explains the ruling, the Fair Labor and Standards Act, and general best practices for you and your staff, helping keep your ministry compliant and safe. This is Part II of a series; Part I of this webinar series, below, discussed what the original rule was and how it could have affected ministries.
Department Of Labor Updates Effective July 1, 2024.
Starting July 1, 2024, a new labor law from the U.S. Department of Labor will drastically alter overtime pay eligibility for salaried workers. The new rule raises the wage threshold for overtime exemption, which might affect your ministry. Ministries must prepare for these changes by evaluating their payroll procedures and modifying the wages of employees who fall below the new levels.
FAQ: The Fair Labor Standards Act (FLSA) and Recent Updates
NOTE: This FAQ is NOT comprehensive and DOES NOT constitute legal advice. It is intended solely to provide preliminary guidance for frequently asked questions. This FAQ is based only on federal law (Fair Labor Standards Act), which may be superseded by state law, depending upon the state of employment. Because much of the application of the FLSA is fact-specific, you should consult with your attorney before taking any action with respect to specific employment circumstances.
Exempt vs. Non-Exempt Employees
1. Does a position have to meet all three tests (salary threshold test, salary basis test, and job duties test) to be exempt from overtime under the “white collar exemptions?”
2. What is the difference between non-exempt and exempt employees?
Overtime Rules
3. Is the overtime rule applicable over 40 hours a week, regardless of the employee being full-time or part-time?
4. Our standard workweek is 36 hours. Do we have to pay overtime for hours worked beyond this?
5. Is the overtime rate 1.5 times the minimum wage or 1.5 times the employee’s regular pay rate?
Salary Threshold and Flexible Work Weeks
6. How does the salary threshold for exempt staff work if an employee only works a 25-hour workweek?
7. Can we institute a flex work week by changing work hours/schedules?
8. Can you reduce the number of hours an employee works if you cannot raise their salary to the new threshold for a 40-hour workweek?
Part-Time and Salary Threshold
9. Can the salary threshold be pro-rated for part-time employees?
Housing Allowances and Seasonal Work
10. How do housing allowances factor into compensation?
11. Does housing provided to camping staff count towards the salary threshold?
12. Can an exempt employee for a summer camp switch to non-exempt status during the winter?
Specific Scenarios
13. How should leaders on mission trips be compensated?
14. Do Directors of Ministry or organists who don’t work full-time but meet the job duties test for exemption?
Additional Information
15. How should time be tracked?
16. Are part-time employees required to receive PTO or vacation time?
17. Can an employee under the threshold choose flex time into the next workweek?
18. Is there recommended verbiage for when salaried employees must use time off?
Final Notes: How to Determine Ministerial Exception
Generally, whether an employee falls within this exception depends on their role with respect to conveying the organization’s message and carrying out the organization’s mission. Leadership should evaluate positions individually based on job duties and their role within the organization.
Have more questions? Reach out to your Conference Office or consult an employment attorney to ensure compliance with the latest labor laws.
Need more resources?
GCFA's monthly newsletter contains more resources and news you need for your ministry. Sign up for The Collaborator!