Paying a salary to a non-exempt employee can be complicated. Many organizations—including ministries—often are unaware that employees who fit the non-exempt definition set by the Fair Labor Standards Act (FLSA) are entitled to minimum wage and overtime, even if the worker is paid a salary. To see if you have an employee who qualifies as exempt, see the FLSA Risk Assessment Chart.
It’s a common mistake to classify a worker as exempt in order to pay the worker on a salaried basis. Be aware that a title alone—such as “administrative assistant”— does not create an exemption. Generally, the job duties and salary of support staff and clerical workers often do not meet the standard.
Note: The job duties and salary of support staff and clerical workers often do not meet the standard.
For non-exempt employees, hourly pay is the safer compensation method—it’s a straightforward way to track regular and overtime hours, and may offer protection against pay disputes. However, if your ministry is strongly committed to paying non-exempt employees a salary, there are certain FLSA rules you must follow.
For non-exempt employees paid a salary, ministries should:
If you’d like to read the four other tips in this series, download Payroll and the Church: 5 Things That Ministries Get Wrong from MinistryWorks.
The information provided in this document is intended to be helpful, but it does not constitute legal advice and is not a substitute for the advice from a licensed attorney in your area. Please consult your attorney when creating, reviewing, or revising policies and procedures.