Are you in compliance?
Updated: Nov 22, 2022
You may be surprised to learn that both small churches and large companies are both required to follow many of the same employment regulations. Staying in compliance with these regulations can help avoid problems and potential penalties.
The Department of Labor (DOL) establishes requirements for classifying employees as salaried (exempt) or hourly (non-exempt). These requirements apply to all employers regardless of size or type and are very specific on how employees can be compensated and managed.
Salaried vs Hourly
Department of Labor guidelines govern not only earnings but also include duties tests requirements for any position to qualify as salaried. All hourly employees (including part-time) are eligible for overtime at 1.5X their normal hourly rate of pay for all hours in excess of 40 in a work week. For hourly employees there are also strict time tracking requirements that both employees and employers are required to follow.