HB 2336 Summary

• Establishes minimum salary requirements for employees to qualify as exempt from overtime pay requirements under federal Fair Labor Standards Act in administrative, executive, or professional capacities.

• Sets initial salary threshold at the 40th percentile of weekly earnings for full-time nonhourly workers in the lowest-wage census region, based on U.S. Department of Labor data from the second quarter of the preceding year.

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

• Permits salary compensation to be paid on a fee basis for administrative and professional employees, or translated into equivalent biweekly, semimonthly, or monthly payments.

• Requires the Arizona Department of Labor Commission to adjust the salary amount every three years beginning January 1, 2023, based on current U.S. Department of Labor wage data.