AZ HB2157

Adds new salary threshold requirement for employees to qualify as exempt from overtime pay under federal Fair Labor Standards Act (FLSA) in administrative, executive, or professional capacities.

Sets initial salary threshold at the fortieth percentile of weekly earnings of full-time nonhourly workers in the lowest-wage census region, based on U.S. Department of Labor data from the second quarter of the year immediately preceding the update.

Adjusts the salary threshold every three years starting January 1, 2022, using the same calculation methodology based on the lowest-wage census region earnings data.

Exempts teachers, licensed medical professionals, licensed attorneys, and other professionals from the new salary requirements if they would not have been subject to salary requirements under U.S. Department of Labor regulations in effect in 2015.

Allows the salary requirement to be paid on a fee basis for administrative or professional employees, or translated into equivalent amounts for longer pay periods such as biweekly, semimonthly, or monthly.