New Overtime Pay Rules May Affect Churches
New federal Fair Labor Standards rules governing overtime pay exemptions, scheduled to go into effect Dec. 1, 2016, may affect some churches, especially those with pre-schools.
The regulations, issued on May 18, 2016 by the Wage and Hour Division of the U.S. Department of Labor under the Fair Labor Standards Act (FLSA), address income levels that determine whether employees are designated as exempt from overtime pay requirements.
The basic rule requires that anyone earning less than $47,476 per year, on an equivalent basis, is automatically deemed Non-exempt and eligible for overtime pay. Most religious and non-profit organizations are exempt from the FLSA. However, pre-schools are specifically excluded from this exemption.
All churches should be familiar with these rules, said Conference Treasurer Larry Bridge. They could also affect other employees, depending on their duties.
The information below can also be found in the Finance Section of this website under Forms and Information
- General Information
- Summary of Federal Law Changes Affecting Exempt/Non-Exempt Worker Status – UMC GCFA Guidance
- United States Department of Labor – Overtime Final Rule and the Non-Profit Sector
- United States Department of Labor – Wage and Hour Division – Fact Sheet #14A – August 2015
- United States Department of Labor – Wage and Hour Division – Guidance for Non-Profit Organizations on Paying Overtime under the Fair Labor Standards Act – May 18, 2016
- Littler, Mendelson P.C. Slide Presentation
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