September 14, 2016
Last May, the United States Department of Labor (DOL) announced a new standard for determining who qualifies as an exempt employee under the Fair Labor Standards Act (FLSA). The new ruling says that if an employee earns less than $47,476 per year ($913 per week), then in most cases the employee needs to be classified as non-exempt. This change will take effect December 1, 2016.
This change will likely affect all businesses—and ministries. If you have an employee performing exempt job duties, and you pay the employee less than $47,476 per year, your ministry will need to do one of two things:
Does the FLSA Apply to Ministries?*
The FLSA covers most ministries, so it is important that your ministry properly classify employees as non-exempt or exempt. Non-exempt employees must be paid minimum wage, and they must be paid overtime if they work more than 40 hours per week.
Exempt employees generally are paid on a salary basis and are not eligible to receive overtime. The courts have held that clergy (those who are ordained or who function in a similar religious capacity) are exempt from federal wage and hour laws. For non-clergy employees, ministries should follow FLSA rules and classify them as either exempt or non-exempt.
Qualifying Tests for Exempt Employees
An exempt employee must meet the following three tests:
Employees who fail to meet all three of these tests generally must be considered non-exempt and paid at least minimum wage and overtime.
Consult an Expert
Ministry leaders should consult a locally licensed attorney who’s familiar with employment law and with your ministry organization to ensure that you are complying with all applicable federal and state employment laws, as well as help you protect your ministry’s interests.
* For more information, see Brotherhood Mutual’s article titled, “Does the Fair Labor Standards Act Apply to our Ministry?”
As school is back in session, it’s important to make sure your school is equipped with the correct safety procedures. Thinking about your school’s physical security as a series of layers can help you find gaps in your plan. Transportation and volunteers are just two important aspects of your school safety plan to think about.
Anyone who turns on the news, flips through a magazine, or browses the web can see that American society and culture are experiencing rapid transitions. Some ministries have valid concerns that issues surrounding societal shifts may expose them to negative publicity, governmental scrutiny, or litigation.
The questions become: when and how can ministries operate within their deeply held religious beliefs when they may conflict with others’ rights?
Cyber security is increasingly crucial in our technologically advanced world. Scammers use many schemes when attempting to steal your data, but you can outsmart them by understanding their methods.
Having gas leak detectors placed within your ministry where a propane, natural gas or liquified petroleum gas fueled appliance is located is always the smart choice. The state of Maine decided to take this a step further and make it a law.
Most ministry leaders don’t realize there is funding available to non-profit employers including churches, schools, colleges, and camps. This post includes some highlights about the credit and guidance on where to start to see if your ministry is eligible.
The Atlantic hurricane season officially started June 1, and weather experts say this season is likely to produce above-normal activity. Take action to prepare your ministry to withstand a hurricane now, so you’re not scrambling when a watch or warning is posted.
April is National Child Abuse Prevention Month. Though child abuse may not be something you could ever imagine happening within your ministry, sexual abuse of a minor is one of the top five reasons churches end up in court, according to Church Law & Tax. Studies also show that a child is much more likely to be sexually abused by a trusted adult than a stranger.
When severe storms strike, they can produce high winds and tornadoes. Damaging winds can wreak havoc on your ministry’s property and to buildings. A high wind event can crash debris through your windows, strip your siding, down trees on your parking lot, peel shingles off your roof, and fling back the flashing.
Thieves are taking advantage of soaring precious metal prices. Take steps to protect your ministry’s vehicles and property.
As temperatures plummet, the risk of freezing pipes soars. Frozen pipes can cause costly messes that could also put your ministry on hold while you clean up.
Preparing for this Christmas season may require additional creativity, due to the uncertainty of what COVID-19 may bring in our local community.
A mid-November deadline in the Boy Scouts of America’s (BSA) bankruptcy proceedings may have you wondering what the organization’s bankruptcy filing means for your ministry if you ever hosted or chartered Boy Scout Troops.
Organizations that obtained Paycheck Protection Program (PPP) funding through the CARES Act can have their loans forgiven, turning them into grants. To qualify, each borrower must file a forgiveness application with its PPP lender, proving that it followed the rules. If your church, school, college, or camp meets all the criteria, 100% of its loan can be forgiven.
Learn about the CARES Act and two loans for which ministries may be eligible, since Congress authorized additional funding April 23.
As concern over the dangers associated with the spread of a new coronavirus, COVID-19, spreads, our agency and Brotherhood Mutual want to keep you informed and provide best practices for managing the spread of this and similar illnesses at your ministry.
The first Sunday in February is a big day for sports fans. In fact, many Americans view Super Bowl Sunday as a national holiday. Friends and families will gather this year to watch the big game, enjoy delicious snacks, and of course, critique the commercials that go along with game day.
Recently, we learned about two major overseas incidents involving pastors on mission trips. The first incident involved a pastor being hit by a motorcycle while running. The second was a bus accident involving two pastors. The runner and one of the two bus passengers sustained extensive injuries.
Last month, the IRS announced that its initiating hundreds of church exams to test compliance with the Affordable Care Act (ACA). While many provisions only apply to churches with 50 or more full-time equivalent employees (FTEs), even smaller churches could potentially violate provisions applicable to health benefit plans with as few as 2 plan participants.
July 4th is synonymous with food, fun, and fireworks. If your church is planning an event this Independence Day, remember to keep a focus on safety, so that everyone can have fun.
National Insurance Awareness Day falls on June 28 this year to remind people everywhere that insurance is vital to their companies and ministries.