To determine if the administrative exemption applies, the U.S. Department of Labor’s Wage and Hour Division will look at three issues: salary level, salary basis, and job duties.
Salary Level. As of January 1, 2020, your administrative employee must earn at least $684 per week ($35,568 per year for a full-year worker) to qualify for the exemption. Compensation may be paid biweekly, semimonthly, or monthly, but it must equal or exceed $684 a week. Check with your state's labor office to see if your state has rules that govern pay frequency.
Because the consequences of misapplying the administrative exemption can be costly, ministries are encouraged to seek a local attorney’s assistance when considering these questions and making a final determination.
Salary Basis. Your administrative employee must earn a salary. This means he or she receives a predetermined amount for any week in which work is performed, regardless of the quality or quantity of the work.
Job Duties. To qualify as an administrative employee, he or she must:
If you think a particular position might qualify for the administrative exemption, it may be helpful to ask the following questions:
Because the consequences of misapplying the administrative exemption can be costly, ministries are encouraged to seek a local attorney’s assistance when considering these questions and making a final determination.
If you found this information helpful, you might be interested in these other resources from Brotherhood Mutual:
*Important information: Brotherhood Mutual is pleased to provide Legal Assist as a complimentary resource. The services we offer through Legal Assist are intended to provide general legal information to our current and prospective policyholders.
The information we provide is intended to be helpful, but it does not constitute legal advice and is not a substitute for the advice from a licensed attorney in your area. Accordingly, no attorney/client relationship is created through this process, and no legal advice will be provided. We strongly encourage you to regularly consult with a local attorney as part of your risk management program.
Thank you for your interest in Brotherhood Mutual. We appreciate the opportunity to provide your church or other ministry with an insurance quote and will reply to your request as soon as possible.
2024 Brotherhood Mutual
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2024 Brotherhood Mutual