New Federal Overtime Rules & its Effect on Church Staff

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sword

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The DOL announced new federal overtime rules in May.

The new rules make it clear all employees, including non-profits, that earn under $913 week must be paid overtime for all hrs over 40. It appears most churches will be exempt because they do not meet the $500,000 per year threshold.

How will this effect preachers and overworked church staff in very large ministries?

How does a ministry divide mandatory work time from voluntary ministry time.

https://www.councilofnonprofits.org/trends-policy-issues/overtime-regulations-and-the-impact-nonprofits
https://www.dol.gov/WHD/overtime/final2016/faq.htm

 
If memory serves (and that's highly doubtful), didn't the Sarbanes?Oxley Act have something to say about the differences between paid work and volunteer work?

In other words, you can't "work some and volunteer some".

I was at a CLA meeting when this came out and it caused some small stir amongst those in attendance.
 
sword said:
The DOL announced new federal overtime rules in May.

The new rules make it clear all employees, including non-profits, that earn under $913 week must be paid overtime for all hrs over 40. It appears most churches will be exempt because they do not meet the $500,000 per year threshold.
Click to expand...

What is this threshold?  Is it how much the church takes in?  (does that count just general offering, or does it count all income?)

How will this effect preachers and overworked church staff in very large ministries?
Click to expand...

In some churches, it has been common to hire a staff member on a (low) salary, and declare that they are "EXEMPT", which means that they don't have to be paid OT. The church then works them 60-100 hours, and doesn't have to pay them.  Now, they can not longer do this until the "salary" is ~$47,500, which means that they will have to pay for every hour worked -- which, to me, seems only fair.  Either pay them by the hour, or pay a decent salary.  I'm not sure if the minimum wage laws apply to churches. Also, I don't know that this law applies to part-time employees.


How does a ministry divide mandatory work time from voluntary ministry time.

https://www.councilofnonprofits.org/trends-policy-issues/overtime-regulations-and-the-impact-nonprofits
https://www.dol.gov/WHD/overtime/final2016/faq.htm
Click to expand...
 
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