H.B. No. 731 Summary

• Raises the salary threshold for employees exempt from overtime laws from an unspecified amount to $913 per week, effective immediately upon passage.

• Requires the Director of Commerce to adjust the salary threshold every three years beginning September 30, 2022, based on the fortieth percentile of weekly earnings of full-time nonhourly workers in the lowest wage census region using U.S. Department of Labor data.

• Allows employees paid on a fee basis to qualify as exempt if their hourly rate (total pay divided by hours worked, multiplied by 40) equals or exceeds the minimum weekly salary threshold.

• Exempts certain professionals from overtime requirements unless paid hourly: teachers, attorneys, physicians, dentists, optometrists, and medical interns/residents.

• Extends small business paperwork violation penalties waiver to first-time violations with exceptions for serious public harm, criminal conduct, tax violations, and federal compliance requirements.