AZ HB2267

Establishes minimum salary requirement for employees to qualify as exempt from overtime pay under administrative, executive, or professional capacity exemptions aligned with federal Fair Labor Standards Act standards.

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 preceding the update.

Requires the Industrial Commission of Arizona to adjust the salary amount every three years beginning January 1, 2025, using the same earnings percentile calculation methodology.

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

Allows salary to be paid on fee basis for administrative and professional capacity employees, and permits conversion to biweekly, semimonthly, or monthly payment periods.