During our annual administrators meetings we discussed the proposal to raise the salary requirement for overtime.
Currently, employees are “exempt” from overtime pay and minimum wage laws the job is classified as a “bona fide executive, administrative, professional and outside sales employees” who make a salary of at least $445 per week ($24,500 annually). However, the proposed rule change would increase the minimum salary requirement to $50,440 per year, or $970 weekly. Salaried employees who make less than that amount would be eligible for overtime pay at 1 1/2 times normal salary at a minimum.
According to the Department of Labor website, the rule will not affect teachers. However, it will definitely impact schools and preschools since administrators, directors, secretaries and other office staff, and nurses will fall into this category, should it go into effect. This would mean that these employees would be entitled to 1 1/2 times their normal pay for every hour worked beyond 40 hours each week.
Coupled with calls by politicians to raise the federal minimum wage to $15 per hour, this rule could be debilitating to Christian schools and preschools. Please consult with your attorney, or contact our offices to determine which positions may be impacted.