Who is Really Salaried?

Churches have often found it easy to simply deem employees as salaried and pay them a flat amount, however this may not be correct and can put the church at compliance risk. As churches are subject to Department of Labor (DOL) regulations regarding correct classification of employees this is important for churches to understand.

There are two classifications of employees as established by the Department of Labor:

1. Exempt (Salaried) – These positions are exempt from overtime protections and are paid a flat amount regardless of the number of hours worked.  To be considered as an exempt (salaried) worker, employees must:

   • Be paid on a fixed salary of at least $684 per week ($35,568 annually)

   • Perform executive, administration, or professional roles

     
     

2. Non-Exempt (Hourly) – These positions are paid on an hourly basis and are subject to overtime protections for hours in excess of 40 per week. Time tracking is required for all non- exempt employees  

   
   

In order for employees to be correctly classified as Exempt (Salaried) both the earnings threshold ($35,568) and the duty requirements of performing executive/professional roles must be met.

Interested in learning more? 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.  

BMA Financial Insurance Services is your trusted resource. Let us serve you today!  

Mark Bradley

BMA Financial - Insurance Services

501.499.4205

mbradley@bmaamerica.org

Have other Questions?

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