Arizona aligns with federal FLSA; $684/week salary minimum for exempt employees.
Arizona does not have a state-specific salary threshold for exempt employees. Employers must adhere to the federal Fair Labor Standards Act (FLSA) standard, which requires administrative, executive, and professional employees to be paid on a salary basis of at least $684 per week ($35,568 annually) and meet specific duties tests to qualify for exemption from overtime pay.
FLSA $684/wk Exempt Classification
Validates exempt against $684/week federal salary basis + duties test. Federal threshold controls — no AZ-specific exempt rule.
What those rules do as a Arizona shift is created.
Teambridge continuously monitors employee classifications against the federal FLSA standards, ensuring that any employee designated as exempt meets both the salary basis and the duties tests. If an employee fails to meet these criteria, the system flags them as non-exempt, automatically calculating overtime as required.
Salary Threshold Check
When an employee is classified as exempt, Teambridge verifies their annualized salary meets or exceeds the federal FLSA minimum of $35,568 ($684/week). If not, the system automatically reclassifies them as non-exempt, triggering overtime calculations for hours worked over 40 in a workweek.
Duties Test Reminder
For newly classified exempt employees, Teambridge prompts managers to confirm the employee's primary duties align with the federal FLSA executive, administrative, or professional duties tests. This acts as a critical reminder for manual verification, preventing misclassification based solely on salary.
Overtime Liability Mitigation
By proactively identifying and correcting misclassifications, Teambridge helps employers avoid significant wage and hour liabilities, including back pay for unpaid overtime and potential penalties under federal law, ensuring compliance before issues arise.
Compliance, on autopilot.
Never worry about keeping up with Arizona's changing labor laws. Teambridge bakes compliance into the core of your operations.
Federal FLSA $684/week salary basis for exempt employees controls in Arizona.
Arizona employers must comply with the federal Fair Labor Standards Act (FLSA) regarding the classification of employees as exempt from minimum wage and overtime requirements. There is no state-specific salary threshold that supersedes the federal standard. To qualify for exemption, employees must meet both the salary basis test and the duties test.
29 CFR Part 541 - Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Computer and Outside Sales Employees
The Fair Labor Standards Act (FLSA) provides for minimum wage and overtime pay for all covered, nonexempt employees. Certain employees, however, are exempt from the minimum wage and overtime requirements. These exemptions are narrowly construed to apply only to "white collar" employees who meet specific salary and duties tests. The current federal salary threshold for most exemptions is $684 per week ($35,568 per year).
Salary Basis Test
For an employee to be considered exempt, they must generally be paid on a salary basis of not less than $684 per week, exclusive of board, lodging, or other facilities. This salary must be a predetermined amount that is not subject to reduction because of variations in the quality or quantity of the work performed. Limited exceptions exist for certain deductions from salary, but improper deductions can lead to loss of the exemption.
Duties Test
In addition to the salary basis, an employee's primary duties must meet specific criteria for executive, administrative, or professional exemptions. For example, an executive employee's primary duty must be managing the enterprise or a recognized department or subdivision, customarily and regularly directing the work of two or more other employees, and having the authority to hire or fire other employees, or whose suggestions and recommendations as to the hiring, firing, advancement, promotion or any other change of status of other employees are given particular weight.
How Teambridge keeps your Arizona operations compliant with exempt classification rules.
Teambridge integrates federal FLSA exempt classification rules directly into your workforce management. Our system automatically reviews employee classifications against the latest federal salary thresholds and provides tools to help verify duties, mitigating compliance risks in real-time.
Automated Salary Threshold Enforcement
Teambridge ensures that any employee designated as exempt meets the federal FLSA salary threshold of $684 per week. If an employee's compensation falls below this, the system flags the misclassification, prompting immediate correction and preventing overtime violations.
Structured Verification Workflows
While duties tests require human judgment, Teambridge provides structured workflows and prompts for managers to confirm that an employee's primary job responsibilities align with federal executive, administrative, or professional exemption criteria. This ensures a comprehensive approach to classification.
Automatic Non-Exempt Reclassification
If an employee is found not to meet the exempt criteria, Teambridge automatically reclassifies them as non-exempt. This triggers correct overtime calculations for all hours worked over 40 in a workweek, ensuring accurate pay and compliance with federal wage and hour laws.
Documented Compliance History
Every classification decision, change, and verification within Teambridge is meticulously logged, creating an immutable audit trail. This robust reporting capability provides essential documentation for compliance audits and demonstrates due diligence in maintaining proper employee classifications.
People also ask.
What is the minimum salary for an exempt employee in Arizona?
Arizona does not have a state-specific minimum salary for exempt employees. Employers must follow the federal Fair Labor Standards Act (FLSA) standard, which is currently $684 per week (or $35,568 annually) for most exemptions.
Does Arizona have its own "white collar" exemption rules?
No, Arizona generally defaults to federal FLSA rules for "white collar" exemptions (executive, administrative, professional). This means both the federal salary basis test and the federal duties test must be met for an employee to be properly classified as exempt from minimum wage and overtime.
What happens if an exempt employee in Arizona doesn't meet the salary threshold?
If an employee classified as exempt does not meet the federal FLSA salary threshold of $684 per week, they are considered non-exempt, regardless of their duties. This means they are entitled to minimum wage and overtime pay for all hours worked over 40 in a workweek, and the employer could face significant back pay liabilities.
Are there any specific Arizona duties tests for exempt status?
Arizona does not have specific state duties tests for exempt status. Employers must adhere to the federal FLSA duties tests for executive, administrative, and professional employees. These tests examine the primary job responsibilities to determine if they meet the criteria for exemption.
Can an employee be paid a salary but still be non-exempt in Arizona?
Yes, absolutely. Being paid a salary does not automatically make an employee exempt. To be properly classified as exempt, an employee must meet both the federal FLSA salary basis test (currently $684/week) and the specific duties test for their exemption category (executive, administrative, or professional).
Where can I find the official federal FLSA exemption rules?
The official regulations for FLSA exemptions are found in 29 CFR Part 541, "Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Computer and Outside Sales Employees." The U.S. Department of Labor (DOL) website also provides extensive guidance and fact sheets on these rules.