FLSA Requirements Regarding Enterprise Coverage for Churches

Q. In the context of reviewing the impact of the FLSA changes for our church, if we do not appear to meet the requirements for enterprise coverage, does that mean we do not need to comply with FLSA requirements?

A. No, there are two distinct coverage tests a church needs to review to determine whether workers are subject to FLSA. The first is the enterprise coverage test. However, even if a church does not meet the requirements for enterprise coverage, the church must still walk through the second test, individual coverage.

Generally, the threshold for individual coverage is fairly low. The Department of Labor has indicated “....an individual is covered if the employee makes or receives interstate telephone calls, ships materials to another state, or transports people or property to another state.” In today’s technologically connected world, it is hard for a worker not to have interaction with people across state lines. With the likelihood of some interaction across state lines, it is safest to assume a worker is subject to individual coverage unless they are clearly exempt.

For more information, download the eBook Answering Your Overtime Questions for Churches and Ministries written by attorney Sally Wagenmaker, Wagenmaker & Oberly, Chicago and Charleston, and published by ECFA.



This text is provided with the understanding that ECFA is not rendering legal, accounting, or other professional advice or service. Professional advice on specific issues should be sought from an accountant, lawyer, or other professional.