Our professional advisors have helped us to determine that certain church staff members paid on an hourly basis are subject to the Fair Labor Standards Act (FLSA), and we must pay them overtime for hours in excess of 40 hours a week. If we pay "covered" staff member on a salary instead of an hourly basis, will this exempt the employees from the FLSA?
No. Changing the payment does not make an employee exempt.
Dan Busby is a certified public accountant, president of the Evangelical Council for Financial Accountability (ECFA), and the author of the Zondervan Clergy Tax & Financial Guide.