What the new overtime regulation means for your church – Updated 7/19/24

We at Texas Baptists wanted to ensure you were aware of a new Department of Labor overtime rule passed on April 23, 2024, that became effective at the beginning of this month. On July 1, 2024, the DOL raised the minimum weekly salary to qualify for exemption from overtime from $684 per week to $844 per week or the equivalent salary of $43,888 per year. The threshold will then increase to $1,128 per week, the equivalent of a $58,656 annual salary on January 1, 2025. The Department of Labor stated in a 2021 letter that there is a ministerial exception to wage and hour laws. We believe this applies to this new rule as well. These employees do not need to be ministers (ordained or licensed) for tax purposes. They just need to perform some ministerial duties.

What this means for you today: If you have any non-ministerial employees who make less than the annual salary equivalent of $43,888 per year ($844/week), they need to track their hours, and you need to pay them overtime (1.5x their hourly rate) for those hours worked over 40 per week starting July 1. The second adjustment for January 1, 2025, is $58,656 annually ($1,128/week).

If you have any questions or if we can be of any assistance to you in this matter, please feel free to reach out to the Texas Baptists Finance and Accounting Department.