calendar November 22, 2016 in Congregations, Finance

New FLSA Requirements for Churches

Please share this information with the appropriate leaders and staff in your congregation.

There is a new requirement for overtime that goes into effect on December 1, 2016.  It is important for all churches to be aware of the new law.

This law will affect nursery schools and day care centers that are owned by churches as well as individuals who work for churches.

First, teachers of nursery schools and day care centers are exempt, however any administrative or clerical employees would be subject to the new overtime rules.

Secondly, if church employees are regularly engaging in interstate commerce as part of their job duties, then they are subject to the new rules.  Interstate commerce includes purchasing items across state lines and also interstate communications.  The exception to this is the ministerial rule.  If the duties of the employee include worship leadership or conveying the church’s message, they are exempt.  This is called the ministerial exception.

If the above employees make less than $47,476, then they are eligible for overtime if they work more than 40 hours per week.  Overtime is to paid at time and a half for all hours over 40.

In summary, church employees who are engaged in interstate commerce, and do not qualify for the ministerial exception, will be subject to the new rules for overtime if they earn less than $47,476.

For nursery schools and day care centers that are owned by the church, any employees that are not teachers, are subject to the new rules if they earn less than $47,476.

Sincerely,

Janet Huber Neff, CPA

Treasurer, SEPA Synod of the ELCA