Housing Allowance and Minimum Wage Requirements?

by Jeni
(MN)

I see a lot of questions here related to clergy housing allowances and how much should and/or can be applied for a clergy's compensation.

My question is in regards to meeting Department of Labor Minimum Wage requirements.

Does everything that is paid towards housing allowance and wage compensation count towards their wage for calculating total wage?

I cannot find any exemption for clergy or non-profits for minimum wage requirements.

Any assistance is greatly appreciated, please include regulatory references for me as well so I am able to provide to my church council.

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May 02, 2019

Followup
by: Jerry

Forgot to add that non-profits are not exempt from FLSA so non-minister employees are still covered under FLSA.

FLSA opinion letter: https://www.dol.gov/whd/opinion/FLSA/2018/2018_12_21_29_FLSA.pdf

Court Cases:

Alcazar v. Corporation of Catholic Archbishop of Seattle, 2006 WL 3791370 (W.D. Wash. 2006)

Shaliehsabou v. Hebrew Home of Greater Washington, 363 F.3d 299 (4th Cir. 2004)

May 02, 2019

Exempt from FLSA
by: Jerry

The DOL has stated a few times that ministers are exempt from FLSA, e.g. overtime pay if paid less than $455/wk.

Additionally, two federal courts have specifically ruled that the FLSA does not apply to ministers due to the so-called "ministerial exception."

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Join in and write your own page! It's easy to do. How? Simply click here to return to Designating Housing Allowance.

If you want to DIY your payroll, I highly recommend you look at using Gusto! It is very user friendly and their support is awesome! Plus they know how to set up and maintain payrolls for churches and nonprofit organizations.

Note: I am a "partner" of Gusto, but as I have told you before ... I never recommend anything that we or our clients have not tried and love =)

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