Hey Church Leaders,
Big changes are on the horizon with the Federal Fair Labor Standards Act (FLSA), and it’s important to stay ahead of the curve to ensure your church is in full compliance. Let’s break down what you need to know and how it pertains to your church staff.
Understanding Exemptions Under FLSA
Under the FLSA, certain classifications of employees must meet specific qualifications to be exempt from overtime pay when working more than 40 hours in a work week. Two key qualifications are:
- Employees must be paid on a salary basis.
- The salary must meet or exceed a minimum threshold set by the FLSA.
New Salary Thresholds
The U.S. Department of Labor has announced a phased-in process that will increase these minimum salary thresholds:
- Effective July 1, 2024: The minimum salary threshold will increase from $35,568 to $43,888.
- Effective January 1, 2025: This threshold will further increase to $58,665.
Impact on Your Church Staff
While the new rule doesn’t change the law that ministers are exempt from overtime under the FLSA, it might still impact other non-ministerial program and support staff.
Seeking Professional Advice
We highly recommend seeking professional advice to ensure full compliance with the new regulations and address any specific concerns you might have. By staying informed and proactive, you can continue to lead your church with confidence and care.