Key Point 8-08.07. Several states have enacted minimum wage and overtime pay laws. The provisions of such laws will take priority over the minimum wage and overtime pay provisions of the federal Fair Labor Standards Act if they are a higher amount.
The preamble to the DOL regulations cautions that “some state laws have stricter exemption standards than those described [in these regulations]. The FLSA does not preempt any such stricter state standards. If a state or local law establishes a higher standard than the provisions of the FLSA, the higher standard applies.” This is an important point. Several states have enacted legislation mandating a higher minimum wage than the federal minimum wage. However, when Congress enacts increases in the federal minimum wage, the federal rate will transcend some state minimum wage rates. So, it is important for church leaders to be aware of both the federal and state rates. Whichever is higher applies.