The US Department of Labor (DOL) establishes the regulations governing the classification of employees as Salaried (Exempt) and Hourly (Non-Exempt). These regulations apply to all employers including churches.
In 2019 the DOL established $35,568 as the minimum compensation for an employee to be classified as Salaried (Exempt). Employees earning less than this annually are required to be classified as Hourly (Non-Exempt), and are eligible for (1.5X) overtime for hours in excess of 40 in a work week.
In 2023 the DOL recommended raising the minimum compensation level for Salaried (Exempt) classification to $55,000. If approved, all employees earning less than this amount will be classified as Hourly (Non-Exempt). Hourly positions are required to submit timesheets weekly for employer verification.
The DOL is currently in the process of reviewing public comments and finalizing the new required earnings threshold for Salaried (Exempt) classification. While no dates are yet available for the release, it is likely we will receive notification of the final rule from the DOL in Q2, which will include the effective date for employers to be in compliance with the regulation.
Have Questions? We’re here to help!
BMA Financial Insurance Services is your trusted partner that can help bring clarity and understanding to whatever your situation may be.
Let us help explain your options.
Our focus is on educating our churches and pastors to help them make well informed decisions about these very important topics.
Mark Bradley
BMA Financial - Insurance Services
501.499.4205
Have other Questions?
For all other questions Contact us, we are ready to assist you.