AZ HB2909

Establishes salary threshold requirement for workers to qualify as exempt from overtime pay under administrative, executive, or professional capacity exemptions aligned with federal Fair Labor Standards Act of 1938.

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 before implementation.

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

Allows salary requirements to be satisfied through fee-based compensation for administrative and professional employees, or through payments on biweekly, semimonthly, or monthly schedules.

Requires the Industrial Commission of Arizona to adjust the salary threshold every three years starting January 1, 2028, based on updated federal labor statistics for the lowest-wage census region.