On Friday, November 15, the federal government delivered news directly impacting Clinical Pastoral Education (CPE) residency programs: a federal judge in the Eastern District of Texas struck down the proposed changes to the Fair Labor Standards Act (FLSA). This ruling means that the second round of salary threshold increases will not proceed, keeping the minimum salary for exempt employees at $684 per week ($35,568 annually).
For CPE programs across the U.S., this decision raises important questions about compensation, workload management, and compliance with labor laws. Many programs had already begun adjusting stipends and re-evaluating resident classifications in anticipation of the now-invalidated rule. As we unpack the implications of this ruling, we’ll explore how programs are adapting and offer practical recommendations to help navigate this evolving landscape. But first, let’s dive into what the FLSA is and why CPE educators should be concerned about it.
What’s the Fair Labor Standards Act and Why Should CPE Educators Care?
The Fair Labor Standards Act (FLSA) is a key federal law that regulates wages, overtime pay, and employee classification. Under FLSA rules, employees are classified as exempt (not eligible for overtime) or non-exempt (eligible for overtime) based on their job duties and salary levels.
In 2024, the Department of Labor (DOL) proposed raising the salary threshold for exempt employees from $684 per week ($35,568 annually) to $844 per week ($43,888 annually) starting July 1, 2024, with a further increase to $1,128 per week ($58,656 annually) on January 1, 2025. While this would have extended overtime eligibility to more workers, including Clinical Pastoral Education (CPE) residents, a federal court ruling invalidated the proposal, reverting the threshold to its pre-2024 level. This decision has left CPE programs nationwide reconsidering their pay structures and classification policies.
How Are CPE Programs Adapting to the Fair Labor Standards Act Ruling?
CPE programs across the U.S. have responded in varied ways to the FLSA ruling, shaped by institutional priorities, state regulations, and local union agreements. These adaptations reflect the challenges and opportunities presented by the court’s decision and significant conversations among CPE educators in private online communities.
These discussions reveal shared concerns and creative strategies for addressing salary adjustments, resident classification, and workload management. By synthesizing these insights, we can better understand what the ruling means for those of us running CPE residencies.
Are New Norms Emerging with Salary Adjustments?
Many programs had already raised CPE resident stipends to meet the proposed $43,888 threshold. These increases, initially made to prepare for compliance, may remain in place as they reflect broader market adjustments. Maintaining higher salaries helps retain competitive advantages and demonstrates the value of residents’ contributions to patient care and institutional missions. Hopefully, these salary increases for CPE residents will remain and set a new baseline, enhancing the financial stability of trainees and creating upward pressure on staff chaplains' salaries. After all, institutions will likely want to preserve a clear distinction between trainee compensation and the earnings of experienced professionals. As the saying goes, "A rising tide lifts all boats," and elevating resident salaries could ripple outward, benefiting chaplains across the field and reinforcing the importance of spiritual care professionals in healthcare.
Should CPE Residents Be Classified as Exempt or Non-Exempt?
Programs are split on whether to classify residents as exempt or non-exempt under the FLSA:
Exempt Programs
Programs that kept residents classified as exempt emphasized the simplicity of avoiding overtime tracking. These programs generally imposed 40-hour workweek caps and structured on-call schedules to minimize overwork.
Non-Exempt Programs
Unionized or state-regulated settings often opted for non-exempt classification, compensating residents hourly for all clinical and educational work. This approach allowed for overtime pay and additional compensation for nights, weekends, and holidays, improving morale and financial equity despite added administrative complexity.
This recommendation reflects the balance between operational efficiency and fairness—a recurring theme in discussions about resident support. By carefully considering exempt versus non-exempt classifications, programs address the practical challenges of labor compliance while ensuring residents’ needs are met. Thoughtful classification is not just an administrative decision; it reflects the institution’s commitment to fairness, accountability, and sustainable growth.
Should CPE Residents Be Paid for Educational Activities?
One of the ongoing discussions among CPE educators is whether to compensate residents for time spent on educational activities such as writing verbatim reports, completing assignments, and engaging in reflective reading. For many programs, this issue is tied closely to how residents are classified under the FLSA, with non-exempt residents more likely to be compensated for all activities, including those outside direct clinical care.
Programs in unionized settings, in particular, often compensate residents hourly for educational time, treating it as an essential part of their workload. This approach ensures that all aspects of the CPE residency experience—both clinical and academic—are recognized and valued. However, it also comes with administrative challenges, such as tracking and approving hours for activities like reading and writing, and managing the potential for overtime.
For programs that classify residents as exempt, compensating for educational time is less of a logistical concern. Yet, these programs still face the ethical and practical question of how to balance residents’ dual roles as learners and contributors to patient care. Some educators argue that paying for educational time reflects a commitment to fairness and equity, ensuring residents feel valued for their comprehensive work.
Ultimately, this remains a critical area of debate as CPE programs strive to support residents' learning while navigating institutional policies and labor regulations. As educators adapt to the changing legal and operational landscape, the question of how to address educational time will continue to shape the conversation around compensation practices.
How Are Unionized Programs Maintaining Role Distinctions?
Unionized programs often make clear distinctions between residents and permanent staff chaplains. Residents typically work approved hours with minimal overtime, while staff chaplains, often paid hourly, earn additional compensation for on-call duties. These distinctions help maintain equitable pay practices while preserving role boundaries that support the professional development of both groups.
What Are the Operational Trade-Offs of Hourly Classifications?
Programs that adopted hourly classifications for residents faced logistical challenges like managing fluctuating schedules and approving overtime. However, these challenges were often outweighed by the financial benefits for residents, including overtime pay and shift differentials. Programs that classified residents as exempt avoided these administrative burdens but had to enforce strict limits on hours to prevent overwork.
How Are CPE Programs Aligning Their Pay Scales with Larger Healthcare Systems?
In some programs, particularly those linked to colleges of medicine or larger healthcare systems, pay scales were adjusted to align with other residency programs. This consistency ensured fairness across the organization and avoided singling out CPE residents for differing treatment.
Recommendations for CPE Programs
As programs navigate these complexities, here are some strategies to consider:
Advocate for Maintaining Competitive Salaries
If your program raised stipends in anticipation of the new rule, it’s important to advocate for keeping those increases. While salary decisions often rest with administrators and institutional decision-makers, CPE residency directors can play a vital role in making a compelling case for maintaining higher pay. Reductions could harm morale and recruitment, so here are three key points to help you build your argument:
Recruitment and Retention of Top Talent
Competitive salaries are essential for attracting and retaining high-quality candidates throughout the residency. With many institutions already adjusting to higher market standards, reducing stipends could put your program at a disadvantage, driving potential residents to competing institutions. Highlight that consistent, competitive pay reflects the institution's commitment to its mission and values, ensuring you recruit skilled residents committed to providing high-quality spiritual care.
Upholding Institutional Reputation and Equity
Maintaining higher salaries sends a clear message about the value your institution places on spiritual care and pastoral education. It aligns with broader institutional goals of fairness, equity, and excellence in patient care. Reducing pay could create reputational risks, especially in a competitive job market, and may harm perceptions of the institution as a supportive and forward-thinking workplace.
Ripple Effects on Staff Chaplain Compensation
Sustaining higher stipends for residents helps establish a strong foundation for addressing overall compensation equity. By setting a new baseline for residents, institutions are encouraged to revisit and adjust staff chaplain salaries to ensure there is a clear distinction between trainee compensation and professional earnings. This not only benefits staff chaplains but also reinforces the institution’s investment in spiritual care as an integral component of healthcare.
Evaluate Job Classifications for CPE Residents
Determining whether to classify CPE residents as exempt or non-exempt is a critical decision that requires thoughtful evaluation. While exempt status simplifies administration, hourly pay can provide greater financial equity for residents. CPE residency directors should consider these points when working with institutional decision-makers to choose the model that best aligns with their program’s mission and resources:
Support Institutional Mission and Values
The classification decision should reflect the institution’s commitment to equity, fairness, and the professional development of its CPE residents. Non-exempt status ensures that residents are compensated for all the hours they work, reinforcing the institution’s dedication to valuing their time and contributions. On the other hand, exempt status can align with the institution’s broader goals of simplifying administration, provided safeguards are in place to prevent overwork or burnout.
Balance Administrative Efficiency with Resident Well-Being
Exempt status eliminates the need for tracking hours and managing overtime approvals, which can streamline operations in busy healthcare environments. However, programs opting for this model should carefully monitor work hours to ensure residents are not unintentionally overburdened. For non-exempt classifications, the additional administrative complexity is offset by the transparency and fairness of compensating residents for all activities, including educational and clinical work.
Ensure Manageable Schedules
Structured schedules and clear work limits are essential to supporting the well-being of CPE residents, regardless of whether they are classified as exempt or non-exempt. Here are key points to help ensure that schedules balance resident learning, institutional needs, and overall program goals:
Promote Resident Well-Being and Prevent Burnout
CPE residents often juggle clinical responsibilities, on-call shifts, and educational activities, making it critical to enforce work-hour limits. Overworking residents—especially those in exempt positions—can lead to burnout, undermining their ability to provide high-quality spiritual care and diminishing their learning experience. Instituting clear caps on weekly hours and offering adequate recovery time between shifts ensures that residents remain engaged, focused, and prepared to succeed.
Enhance Learning Outcomes with Protected Time
A manageable schedule allows residents to prioritize their educational activities, such as reflection, verbatim writing, and group supervision, without the pressure of excessive clinical demands. Programs can improve learning outcomes by setting aside protected time for these tasks, ensuring that residents’ roles as learners are given equal weight alongside their clinical contributions.
Embrace Legal Awareness: Stay Current on Labor Laws
Labor laws can evolve quickly, and staying informed is crucial for ensuring compliance and supporting your CPE program’s success. Here are actionable ways to embrace legal awareness and keep your program aligned with current regulations:
Set Up Regular Monitoring Systems for Federal and State Changes
Keep an eye on updates from the U.S. Department of Labor (DOL) and your state’s labor department. Subscribe to newsletters, legal alerts, or labor law update services that provide timely information about regulatory changes. For example, the DOL frequently publishes notices about salary thresholds, overtime exemptions, and classification rules. Partner with your HR department to ensure nothing slips through the cracks.
Engage with Professional Networks and Resources
Networking with other CPE residency directors at conferences and through other professional groups to receive and share insights and strategies for navigating legal complexities.
Collaborate with Legal and HR Experts at Your Institution
Your institution’s human resources and legal teams can be invaluable allies. Schedule annual check-ins to discuss current labor laws and assess your program’s compliance. Ask for their support in creating tools or policies, such as clear resident contracts, wage thresholds, or overtime tracking protocols. Additionally, they should be informed about program-specific needs, like balancing clinical and educational components, to help tailor solutions.
Conclusion
The FLSA ruling may have provided some clarity for CPE residency programs, but it also highlights the ongoing need for thoughtful policies that balance compliance with fairness and equity. As educators and administrators, we can advocate for practices that support our residents, sustain competitive salaries, and align with institutional values. By staying informed, collaborating with decision-makers, and tailoring our approaches to local contexts, we can ensure that CPE programs remain a cornerstone of professional spiritual care formation. Whether through advocating for higher pay, refining resident classifications, or managing schedules responsibly, the work we do today will shape the future of chaplaincy education and the well-being of those we serve.
