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Minimum Wage and Overtime Pay Requirements May Apply to More Church Employees

A look at how the recent withdrawal of the Independent Contractor Rule by the Biden administration affects churches.

Minimum Wage and Overtime Pay Requirements May Apply to More Church Employees
Image: syahrir maulana | Getty

On May 6, 2021, the US Department of Labor (DOL) announced the withdrawal of the Independent Contractor Rule adopted in early January by the Trump administration. As a result, the minimum wage and overtime pay requirements of the Fair Labor Standards Act (FLSA) will apply to more employers, including churches.

Background

Enacted in 1938, FLSA requires that, among other things, covered employers pay their nonexempt employees at least the federal minimum wage for every hour worked and overtime pay for every hour worked over 40 hours in a workweek. It also mandates that employers keep certain records regarding their employees.

The FLSA does not define the term “independent contractor.” Federal courts have uniformly held, and the DOL has consistently maintained, that independent contractors are not “employees” for purposes of the FLSA. The courts and the DOL have struggled ...

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Posted:
  • June 2, 2021

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