Department of Labor Major Overtime Change

Dear Clients and Friends:

An important rule has been issued which may impact your ministry. The department’s final rule, which will go into effect on July 1, 2024, will increase the standard salary level that helps define and delimit which salaried workers are entitled to overtime pay protections under the FLSA. Starting July 1, most salaried workers who earn less than $844 per week will become eligible for overtime pay under the final rule. And on Jan. 1, 2025, most salaried workers who make less than $1,128 per week will become eligible for overtime pay. As these changes occur, job duties will continue to determine overtime exemption status for most salaried employees. So you may want to communicate with your payroll company or CPA to see if this rule applies to your ministry and how the ministerial exemption can be applied.

In Him.