Update (8/20/19): Overtime rules that were set to take effect on December 1, 2016, had been put on hold after a nationwide injunction was handed down on November 22 by a federal judge in Texas. New rules have now been proposed and are scheduled to take affect January 1, 2020. See Richard Hammar’s analysis of these proposed changes in “A Closer Look at New Overtime Rules Taking Effect in 2020.”
Update (9/26/16): New information has come to our attention concerning Examples 15 and 16 in the article below relating to classification of employees in organizations engaged in “enterprise” activities. The corrected and clarified copy has been added to the article and is clearly identified in the text.
Key point 8-08.5.* The Fair Labor Standards Act exempts employees employed in an executive, administrative, or professional capacity from the minimum wage and overtime pay provisions. To be covered by one of these exemptions, an employee must perform specified duties and be paid a salary in excess of a specified amount.
Key point 8-08.6. Ministers who are employed to perform ministerial services, and who are paid a salary that meets or exceeds the "salary test," are professional employees exempt from the provisions of the Fair Labor Standards Act. Ministers not compensated on a salary basis, or who earn a salary below the salary test, may not be covered by the Act. Department of Labor regulations suggest that the Act does not apply to any ministers, and a few federal courts have ruled that the so-called ministerial exception prevents the application of the Act to ministers.