overtime pay

HB 2909 sets new salary requirements for workers classified as exempt from overtime pay under Arizona law. It requires exempt salaried employees (excluding teachers, licensed medical professionals, and attorneys) to earn at least the 40th percentile of weekly wages for full-time nonhourly workers in Arizona's lowest-wage region, adjusted every three years starting in 2028. The bill updates Arizona's exemption threshold to align with federal wage data, ensuring exempt workers meet a minimum compensation standard. This directly affects salaried professionals in administrative or professional roles who previously qualified for overtime exemptions under lower salary thresholds. The change aims to modernize Arizona's overtime rules without altering federal standards.