The new federal overtime rule will not take effect December 1, 2016. But now is the time to review compliance with labor laws.

DON EMMERT
Benefits Officer, Detroit Conference

Most of us have heard about the Department of Labor’s new federal overtime rule announced earlier this year which was to take effect December 1, 2016.

Last Tuesday, a federal court issued a preliminary injunction temporarily postponing the implementation pending further order by the court. The new rule would have raised the salary threshold from $23,660 to $47,476 in order for employees to be exempt from overtime pay.

So, what does this mean for our conferences, agencies and local churches? First of all, it means that for those who have specific questions regarding the classification status of their employee(s), they should consult an expert in payroll law. The Conference Treasurer and Benefits Offices are not equipped to offer advice, opinion, or provide a determination regarding non-conference employees. Secondly, it probably means business as usual for the majority of employees around the conference, especially regarding part time employees who never approach a 40 hour work week.

“It is not true that the Fair Labor Standards Act (FLSA) does not apply to church employees … this would be an opportune time as employers to review whether our employee policies are in compliance, and if not, to make those corrections immediately.”

However, it is not true that the Fair Labor Standards Act (FLSA) does not apply to church employees. Most church-related organizations are not subject to the FLSA, but their employees might be depending on the nature of the employee’s work/responsibilities. Even though the new FLSA salary rule has been postponed, there are several rules within the FLSA that have been in effect for years. Therefore, this would be an opportune time as employers to review whether our employee policies are in compliance, and if not, to make those corrections immediately. Please receive the following informational statements regarding the FLSA.

• The term, “Ministerial Exemption” is often used to clarify that appointed clergy are exempt from overtime rules. While this is not a statutory exemption, every court decision and every Department of Labor (DOL) handbook identifies clergy as exempt.
• A salaried employee is not the same as an exempt employee. Both hourly and salaried employees may be non-exempt for overtime pay. Thus, it is not accurate to classify an employee as exempt simply because they are not paid hourly.
• An employee’s salary level is only one test whether an employee is exempt from overtime. The primary determiners are based on specific duties as they relate to Executive, Administrative, or Professional occupations as provided by the Department of Labor.
• Changing an employee’s job title does not automatically create an exempt position either. For example, just because an administrative assistant is now called an executive assistant does not make that employee exempt from overtime.
• The infamous “comp time” is not recognized by the FLSA. The law is clear: non-exempt employees that work over 40 hours in a given week must be paid at least time and a half for all hours in excess of 40.
  • Examples: An employee works four 9-hour days during a given week and works four hours the 5th day. The next week they work three 12 hour days, four hours the next day, and then take a long weekend. They will be paid regular wages for 80 hours over that two week span.
  • An employee who works 45 hours one week and then works 35 hours the next week must be paid regular wages for 75 hours plus 5 hours of overtime.

Detailed and accurate recordkeeping is a must. Paper or electronic timesheets signed/logged by both the supervisor and employee are an effective means to meet FLSA requirements.

If you have questions, contact Rev. Don Emmert, Conference Benefits Officer, at [email protected].

Last Updated on November 28, 2016