Is Your Church Violating the Fair Labor Standards Act?

In March of 2003, the U.S. Department of Labor proposed significant changes in the process for determining which employees are “exempt” from the federal minimum wage and overtime requirements. These changes represented the biggest alterations in the definition of “exempt” workers in over 50 years. Several months of public comment and reconsideration followed, and then the Department of Labor issued “final” regulations that took effect on August 23, 2004. It is important for church leaders to be familiar with these new regulations and their implications. Many church employees who were considered exempt from the minimum wage and overtime pay requirements in the past are now classified as “nonexempt,” whether they are paid a salary or an hourly wage. This special report will explain the new rules and their application to churches. ADDITIONAL INFORMATION