Ohio Church Ordered to Pay $388,507 in Back Wages

The Church operated a buffet style restaurant for church goers which was staffed by unpaid “volunteers”. The U.S. Department of Labor (DOL) prosecuted the claims against the church for violating the Fair Labor Standards Act (FLSA) by not paying minimum wage, overtime and not keeping accurate payroll records. The Federal District Court in Ohio also found that the employees were entitled to liquidated (double) damages. As a result, church was ordered to pay $388,507 in back wages. The DOL victory illustrates that the FLSA’s reach is wide and applies to all businesses, regardless of whether the business in question is secular or a religious organization.

While in another case, a lady worked as an administrative assistant for the United Methodist Church in Tennessee. After 20 years in her position, she retired. Several months later, on September 26, 2017, she filed suit against the General Board of Discipleship of the United Methodist Church claiming that the church violated the FLSA by not paying her overtime. In her complaint, she states that she consistently worked more than 40 hours every week that she was employed by the church and that officials were aware and intentionally did not pay her the overtime wages she was owed. This case has not yet been heard and is still pending.

These two lawsuits clearly illustrate that even religious organizations must still comply with the FLSA as well as various other Federal and State laws.

A company’s best defense against the potential expense and aggravation related to federal or state law violations is to proactively review and revise as needed their Human Resources policies, handbooks, hiring procedures, compensation, benefits, training programs, communications tools and other functions. The professionals of PHHR are ready to assist your organization maintain compliance with the latest state and federal mandates.

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Paul Hilton is a certified Human Resources Consultant, located in Columbia, SC.
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