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New Pending Regulations

Part of the value our Insurance Services practice provides is making sure our churches are aware of regulatory items which will apply to them.

The US Department of Labor (DOL) Fair Labor Standards Act (FLSA) establishes the regulatory boundaries for employee classifications as either Exempt (salaried) or Non Exempt (Hourly) employees.

The current minimum salary requirement implemented in 2020 for exempt employees is $35,568.

The Recommendation

The just released recommendation from the DOL is to raise the minimum salary requirement for exempt (salaried) employees to $55,068.

This would require employees earning less than $55,068 to be classified as non-exempt (hourly), and be eligible for overtime for hours in excess of 40/week.

What’s Next?

The recommendation is currently in a 60 day public comment window where the DOL will review all comments before establishing a final minimum salary requirement amount. The amount may or may not be reduced from the recommended $55,068.

It is expected that a final determination by the DOL will be released by year end, and an effective date announced for the new requirement which is expected to be sometime in 2024.

Due to the size of the proposed increase in compensation for exempt (salaried) status we expect that this change or anything close to it will have a significant impact on the classification of employees in most all churches. We will of course keep our churches informed as developments occur.

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


Have other Questions?

For all other questions Contact us, we are ready to assist you.

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