16 Oct New Salary Threshold for Exempt Employees
With the Department of Labor’s upcoming rule changes, church employers must prepare for the new salary threshold for exempt employees, rising to $58,656 on January 1, 2025.
However, clergy staff—those considered ministers for tax purposes—are exempt from overtime requirements, regardless of how much or how little they earn. This exemption also extends to those whose roles are critical to the ministry, even if they are not licensed or ordained.
While job descriptions classified as ministerial exception remain unaffected by the overtime rules, it’s important for church employers to evaluate the impact on other staff. Administrative or non-ministerial employees who fall below the new salary threshold may no longer qualify as exempt and will need to have their work hours tracked for overtime purposes.
Church employers should review their workforce and ensure proper classifications. Consulting with an attorney is recommended to fully understand how this ruling affects your ministry and ensure compliance with labor laws while respecting the unique nature of clergy roles.
Original content by © The Church Network. All Rights Reserved. This information is provided with the understanding that Payroll Partners is not rendering legal, human resources, or other professional advice or service. Professional advice on specific issues should be sought from a lawyer, HR consultant or other professional.