New Overtime Pay Rules Delayed

11/30/2016

UPDATED information as of 11/29/2016

A U.S. District Court in Texas has granted a temporary, nationwide injunction on Nov. 22, 2016, that postpones the implementation and enforcement of wage and overtime pay regulations that were set to go into effect on December 1, 2016. The changes may have affected some churches, particularly those with preschools.

Based on the injunction order, it is the opinion of the Conference Treasurer’s office that churches should make no further changes to their organizational structures or payroll practices until court rulings are finalized. 

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. Most religious and non-profit organizations are exempt from the FLSA. However, pre-schools are specifically excluded from this exemption. 

The denomination's General Board of Finance and Administration (GCFA) noted that the injunction only applies to: 

  • (a) the increase to the “minimum salary test” amounts – from $455 per week ($23,600 annually) to $921 per week ($47,892) – and
  • (b) the provisions permitting adjustments to that amount every three years.
"It does not change the duties of employers to properly classify employees based on the salary basis, salary level ($455 per week, $23,600 annually), and duties tests that have been in effect for a number of years," according to GCFA.

The more detailed information below can also be found in the Finance Section of this website under Forms and Information

If further interpretation is needed, contact the Treasurer’s Office, but you also may need to consult outside counsel regarding your specific situation.
 

 

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