Yes, a nonexempt employee can be paid on a salary basis rather than by the hour. However, this arrangement can be challenging to manage in practice. Paying a nonexempt staff member a set salary does not make them exempt from overtime. They must still receive overtime pay for any hours worked over 40 in a workweek.

This also means the church generally should not make deductions from their salary for small amounts of missed time—such as taking a longer lunch than usual or leaving early occasionally. Even though they are salaried, the church is still required to track their hours to comply with the Fair Labor Standards Act (FLSA) and to ensure proper payment of overtime when it is earned.

Some churches choose this pay structure when a staff position does not meet the legal criteria for exempt status but the church prefers the administrative simplicity of paying a set salary. Ultimately, deciding whether to pay a nonexempt employee a salary instead of hourly is a church leadership decision. It may be the right fit in some ministry contexts, but it’s important to weigh the administrative convenience against the ongoing responsibility to monitor hours and pay overtime correctly.