The Fair Labor Standards Act (FLSA) is a federal law that protects workers by establishing standards for a minimum wage, overtime pay, recordkeeping, and youth employment. Every employee of your congregation needs to be properly classified as
A change in the FLSA salary threshold for "white-collar exemptions" (executive, administrative, and professional exemptions) goes into effect on January 1. In 2020, the minimum salary needed for exempt status under the FLSA will increase from $455/week to $684/week, or $35,568/year for a 40-hour, 12-month employee. (This threshold is
for those who work fewer than 40 hours/week.) Some of your staff who currently meet the exemption criteria may need to be reclassified as nonexempt; this has important payroll and recordkeeping implications. Keep in mind that to qualify for any of these exemptions, certain duties tests must also be met.
There is also a ministerial exception to the FLSA, which applies to ministers and staff who have "essential religious duties." This exception falls outside of the FLSA, so no salary threshold applies – it is based only on responsibilities.
Fair Labor Standards Act resource page
includes a detailed FAQ document about exemptions and recordkeeping, as well as a Compliance Guide that walks you through a process of assessing compliance and making necessary adjustments.
- The executive, administrative, and professional exemptions are based on not only salary but also duties. An employee who earns at least $684/week is not automatically exempt; they must also meet the duties tests for a particular exemption, as outlined in our FLSA FAQ.
- As an employer, you must keep records of daily and weekly hours worked for every nonexempt employee.