Change in Overtime Rules Finalized

Late last year we posted that the Department of Labor had delayed some significant changes to the FLSA overtime rules. They have now finalized those changes and they are set to take effect on December 1, 2016.  The full details of the changes can be found on the DOL’s website (https://www.dol.gov/whd/overtime/final2016/).

The biggest change of note for our clients is that there is a significant increase in the threshold salary for an employee to be eligible for the “white collar” exemptions from overtime.  This salary increased from $23,600 to $47,476.  This essentially means that regardless of position, management responsibilities, duties, etc., if employees do not make more than this threshold salary, they cannot be exempt from being paid overtime, even if they otherwise satisfy the white collar exemptions.  Additional information about the white collar exemptions can be found at: https://www.dol.gov/whd/overtime/fs17a_overview.htm.

One important aspect of the revised threshold salary to keep in mind is that ministers will remain exempt from overtime under the “clergy and religious workers” exemption.

Should your church have any questions about these new rules or should you want to consult with someone more specifically about how the revised rules impact your church, please contact our in house attorney Jared Hodge at 317-900-7024 or jared@churchshield.com.

Below is a link to a blog posted by our HR partner, THinkHR, that discusses the changes in greater detail.  If you would like more information on our HR services, please contact Amber Bechtel at hr@churchshield.com.

https://www.thinkhr.com/blog/hr/its-finally-here-dol-releases-the-new-flsa-white-collar-overtime-exemption-rules

Tags: , , ,

Comments are closed.