Next Steps for Churches
Because of the injunction, churches that had planned to reclassify salaried, exempt employees who earned between $23,660 and $47,476 as hourly, nonexempt employees can simply maintain their current pay practices. However, churches should start tracking those employees’ hours because if the preliminary injunction is overturned, the plaintiffs’ bar likely will argue that the DOL’s overtime rule should have applied retroactively to December 1.
Churches that increased, or planned to increase, exempt employees’ salaries to $47,476 to maintain their exempt status would be within their rights to rescind those raises (but not recoup any increased salary already paid).
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