September 14, 2016
Last May, the United States Department of Labor (DOL) announced a new standard for determining who qualifies as an exempt employee under the Fair Labor Standards Act (FLSA). The new ruling says that if an employee earns less than $47,476 per year ($913 per week), then in most cases the employee needs to be classified as non-exempt. This change will take effect December 1, 2016.
This change will likely affect all businesses—and ministries. If you have an employee performing exempt job duties, and you pay the employee less than $47,476 per year, your ministry will need to do one of two things:
Does the FLSA Apply to Ministries?*
The FLSA covers most ministries, so it is important that your ministry properly classify employees as non-exempt or exempt. Non-exempt employees must be paid minimum wage, and they must be paid overtime if they work more than 40 hours per week.
Exempt employees generally are paid on a salary basis and are not eligible to receive overtime. The courts have held that clergy (those who are ordained or who function in a similar religious capacity) are exempt from federal wage and hour laws. For non-clergy employees, ministries should follow FLSA rules and classify them as either exempt or non-exempt.
Qualifying Tests for Exempt Employees
An exempt employee must meet the following three tests:
Employees who fail to meet all three of these tests generally must be considered non-exempt and paid at least minimum wage and overtime.
Consult an Expert
Ministry leaders should consult a locally licensed attorney who’s familiar with employment law and with your ministry organization to ensure that you are complying with all applicable federal and state employment laws, as well as help you protect your ministry’s interests.
* For more information, see Brotherhood Mutual’s article titled, “Does the Fair Labor Standards Act Apply to our Ministry?”
Cyber security is increasingly crucial in our technologically advanced world. Scammers use many schemes when attempting to steal your data, but you can outsmart them by understanding their methods.
Lockdowns have affected many aspects of life in the state of Nevada. Mask restrictions, social distancing, and temporary use of church facilities have changed the way many churches worship corporately. I am seeing more and more of our ministries vacant throughout the week following Sunday services. This creates opportunity for mischievous loitering on church grounds, sometimes causing damage to church property left unattended.
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Thieves are taking advantage of soaring precious metal prices. Take steps to protect your ministry’s vehicles and property.
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Learn about the CARES Act and two loans for which ministries may be eligible, since Congress authorized additional funding April 23.
As concern over the dangers associated with the spread of a new coronavirus, COVID-19, spreads, our agency and Brotherhood Mutual want to keep you informed and provide best practices for managing the spread of this and similar illnesses at your ministry.
The first Sunday in February is a big day for sports fans. In fact, many Americans view Super Bowl Sunday as a national holiday. Friends and families will gather this year to watch the big game, enjoy delicious snacks, and of course, critique the commercials that go along with game day.
Recently, we learned about two major overseas incidents involving pastors on mission trips. The first incident involved a pastor being hit by a motorcycle while running. The second was a bus accident involving two pastors. The runner and one of the two bus passengers sustained extensive injuries.
Last month, the IRS announced that its initiating hundreds of church exams to test compliance with the Affordable Care Act (ACA). While many provisions only apply to churches with 50 or more full-time equivalent employees (FTEs), even smaller churches could potentially violate provisions applicable to health benefit plans with as few as 2 plan participants.
July 4th is synonymous with food, fun, and fireworks. If your church is planning an event this Independence Day, remember to keep a focus on safety, so that everyone can have fun.
National Insurance Awareness Day falls on June 28 this year to remind people everywhere that insurance is vital to their companies and ministries.
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There’s a new scam in town, and ministries and other organizations collecting donations are the primary target. If your ministry collects tithes or donations, you could be targeted by scammers practicing donation overpayment fraud.
Beloved evangelist Billy Graham was called to his heavenly home on Wednesday, February 21, 2018, at the age of 99.