The US Department of Labor announced that they had finalized a new law that has extended overtime benefits to nearly 4.2 million working Americans.
Starting December 1, 2016, salaried employees that make less than $47,476 ($913/week) per year will be eligible for overtime pay if they work more than 40 hours in a work week. Previously, the threshold was $23,660 per year. The amount also will be updated every three years instead of annually, rising to $51,000($980.77/week) on Jan. 1, 2020.
How will this change effect Clergy Employee?
Clergy status employee will not be affected as they fall under an ministerial exemption to the FLSA (Fair Labor Standards Act)/
How will this change effect Non-Clergy Employee?
This change only affects salaried workers making less than $47,476 per year. Hourly employees will continue to be eligible for overtime. Salaried workers making more than 47,476 per year will continues to be exempt from overtime.
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Source: Clergy Financial Resources
Clergy Financial Resources is a national accounting and finance organization serving churches and clergy since 1980. They have an unparalleled tax expertise on the complex issues associated with clergy tax law, clergy taxes, clergy compensation and church payroll. Clergy Financial Resources is a valuable resource for clergy, churches and denominations.
Clergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas.
This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.
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