AZ HB2131

Adds section 23-361.03 to Arizona Revised Statutes establishing salary requirements for employees exempt from overtime pay requirements under the Fair Labor Standards Act of 1938.

Requires exempt administrative, executive, or professional employees to be compensated on a salary basis at an amount determined by the Industrial Commission of Arizona, initially set at the fortieth percentile of weekly earnings of full-time nonhourly workers in the lowest-wage census region.

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

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

Requires the Industrial Commission to adjust the salary threshold every three years beginning January 1, 2026, based on the latest available wage data from the U.S. Department of Labor Bureau of Labor Statistics.