AZ HB2196

Adds new salary requirements for employees to qualify as exempt from overtime pay under administrative, executive, or professional capacity exemptions in Arizona law.

Sets minimum weekly salary at the fortieth 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 professionals from the new salary requirements if they would not have been subject to federal salary requirements as of 2015.

Allows the required compensation to be paid on a fee basis for administrative and professional employees, or translated into equivalent biweekly, semimonthly, or monthly amounts.

Requires the Industrial Commission of Arizona to adjust the salary threshold every three years starting January 1, 2024, and authorizes the commission to adopt implementing rules.