What Employers Need to Know About the Changes to FLSA Overtime Exemptions

The U.S. Department of Labor’s (DOL) recent changes to the Fair Labor Standards Act (FLSA) overtime exemption rules have sent waves through businesses across the country. These updates—initially intended to expand overtime eligibility—have been partially implemented and partially blocked, leaving many employers navigating uncertainty.

As a staffing agency focused on helping employers implement strategic hiring solutions, CPG Recruitment is here to break down what these developments mean and how your business can stay compliant while managing your workforce effectively.

🔍 What Changed in 2024?

Effective July 1, 2024, the DOL increased the salary threshold for employees classified as exempt from overtime under the FLSA’s executive, administrative, and professional (EAP) exemptions:

• Previous threshold: $35,658/year

• New threshold: $43,888/year

This means that employees earning less than $43,888 annually must be paid overtime for hours worked beyond 40 in a week—regardless of their job title or duties.

🧾 What Was Supposed to Happen Next?

A second increase was scheduled to take effect on January 1, 2025, raising the salary threshold to $58,656/year. However, in November 2024, a federal judge in Texas blocked this move. The court ruled that the Department of Labor exceeded its statutory authority by tying exemption status so heavily to salary levels rather than job duties.

⚠️ Why This Matters for Employers

This legal back-and-forth presents a compliance risk for businesses trying to manage compensation fairly and legally. Employers relying on outdated exemption classifications may face increased payroll costs, legal exposure, or both.

As a staffing and recruitment partner, we’ve seen firsthand how unclear regulatory shifts can disrupt operations, budgets, and even employee morale.

Here’s how to stay ahead:

✅ Staffing Solutions for Navigating FLSA Compliance

Whether you’re adjusting to the July 2024 increase or preparing for possible further changes, here are three hiring solutions we recommend:

1. Audit Employee Classifications

Ensure your exempt employees meet both the salary threshold and the duties test. Many businesses unknowingly misclassify employees, which can lead to costly wage-and-hour claims.

2. Adjust Compensation Strategically

Rather than simply increasing salaries to maintain exemption status, consider whether reclassifying employees as non-exempt and paying overtime may be more cost-effective.

3. Work with a Trusted Staffing Agency

Recruitment services like ours can help you source talent strategically—especially if you’re restructuring roles or creating new non-exempt positions to stay compliant and efficient.

💼 How CPG Recruitment Can Help

At CPG Recruitment, we provide expert staffing services designed to help employers stay ahead of regulatory changes and workforce trends. Whether you're navigating overtime law shifts, planning compensation strategies, or building a team that aligns with your culture, our recruiters are here to support your success.

We specialize in recruitment strategies that factor in long-term compliance, role optimization, and business continuity—so you can focus on growing your business, not just reacting to new rules.

Making Full-Time Talent Acquisition Easier | CPG Recruitment

At CPG Recruitment (Careers People Growth), led by Christian Saab, we specialize in connecting top-tier talent with exceptional companies across Canada and the U.S. Our mission is to simplify the hiring process by matching businesses with professionals seeking long-term, fulfilling careers. Building teams with the right people.

At CPG Recruitment (Careers People Growth), led by Christian Saab, we are a full-service recruitment and talent acquisition agency committed to helping companies build winning teams and individuals find meaningful, long-term careers. Based in Windsor, Ontario, and operating throughout Canada and the United States, we proudly serve employers and job seekers in cities such as Detroit, Baltimore, Orlando, Washington DC, West Palm Beach, and beyond.

Whether you're a company hiring skilled tradespeople, technicians, managers, or executives — or a professional looking to grow in your career — CPG Recruitment delivers custom staffing solutions that prioritize culture fit, retention, and long-term success. Our recruitment process is built to help employers overcome staffing challenges and secure high-quality, full-time talent while providing individuals with career development opportunities, job stability, and positions that align with their goals and lifestyle.

We specialize in direct hire recruiting, executive search, and career placement services across a range of industries. Our mission is to make the hiring process easier, faster, and more effective by connecting growing businesses with exceptional individuals who are ready to thrive and grow within strong, people-first organizations.

🔍 What We Offer:

• Expertise in full-time staffing solutions

• Specialization in executive search and direct hire recruitment

• Focus on career development and talent acquisition

• Partnerships with companies offering career advancement opportunities

Whether you're an employer aiming to streamline your hiring process or a job seeker pursuing your next opportunity, CPG Recruitment is here to support your journey.

📲 Connect with Us:

Website: https://www.cpgincorporated.com

Website: https://www.christiansaabofficial.com

Linktree: https://linktr.ee/careerspeoplegrowth

LinkedIn: /cpgincorporated

Facebook: /cpgrecruitmentinc

Instagram: /cpgrecruitment