Arkansas Labor Laws (2025 Guide)

What’s New in 2025

• Ban on physician non-compete agreements
• Changes to unemployment insurance

Labor Law Posters

• Federal labor law posters
• State labor law posters

Wage and Hour Laws

Minimum Wage

As of January 1, 2025, Arkansas’ minimum wage is $11 an hour. 

The state minimum wage applies to employers with 4 or more employees, with some exceptions:  

• Executive, administrative, and professional employees. 
• Students who work in the schools they attend.
• Independent contractors.
• Outside commission-paid salespeople.
• Students whose work is part of a bona fide vocational training program. 
• Some farm laborers.
• Employees of the United States government.

Tipped Minimum Wage

Tipped employees must receive at least $2.63 per hour, with the expectation that tips will bring their total earnings up to the standard minimum wage. Otherwise, employers must make up the difference.

Overtime Laws

An employee who works more than 40 hours across a 7-day work period must be paid 1.5 times their regular hourly rate. 

Overtime provisions apply to employers with 4 or more employees under Arkansas law. 

However, if a business is covered by the Fair Labor Standards Act (FLSA)—and many are due to interstate commerce involvement or annual revenues exceeding $500,000—then federal overtime rules apply regardless of the number of employees.

Businesses covered by the FLSA must pay nonexempt employees 1.5 times their regular rate of pay for every hour they work over 40 hours in a given workweek. Exempt employees include:

• Executive, administrative, and professional employees who earn at least $684 weekly.
• Outside salespersons. 
• Computer employees earning at least $27.63 an hour. 
• Farmworkers. 

Break Laws

Meal and Rest Breaks

Arkansas doesn’t require employers to provide meal periods or rest breaks to adult employees. Whether breaks are provided is left entirely to the discretion of the employer unless otherwise agreed upon in a contract or collective bargaining agreement. If an employer offers breaks, then FLSA rules apply:

• Rest breaks under 20 minutes must be paid.
• Meal periods of 30 minutes or more may be unpaid, but only if the employee is fully relieved of duties during that time.

Arkansas law does require meal breaks for employees under 16 years who are scheduled to work more than 5 consecutive hours. Specifically:

• The employer must provide a 30-minute uninterrupted meal break.
• This break must be provided no later than the end of the fifth hour worked.
• The law doesn’t specify whether the break must be paid, but FLSA rules apply: If the minor is required to perform any work tasks during the break, it must be paid.

Rest Days

Arkansas law doesn’t guarantee employees a day of rest per week. 

Recordkeeping Requirements

Under Arkansas law (and the FLSA), employers must keep accurate records of the following for each non-exempt employee:

• Employee’s full name and Social Security Number.
• Home address.
• Date of birth (if under 19).
• Sex and occupation.
• Time and day of the week when the employee’s work week begins.
• Hours worked each day and total hours worked each work week.
• Basis on which wages are paid (e.g., $11/hour, $440/week).
• Regular hourly pay rate.
• Total daily or weekly straight-time earnings.
• Total overtime earnings for the work week.
• All additions to or deductions from wages.
• Total wages paid each pay period.
• Date of payment and the pay period covered by the payment.

Core employment and wage records must be kept for at least 3 years, and supporting documents related to wage calculations (like time cards, work schedules, and piece rate documentation) must be kept for at least 2 years.

Scheduling Laws

Arkansas has no state-level predictive scheduling laws, fair scheduling mandates, or local ordinances that restrict how employers schedule employees.

Employee Compensation and Benefits

Reporting Time Pay

​In Arkansas, there’s no state law requiring employers to provide a minimum number of paid hours to employees who report to work but are sent home early due to a lack of work.

Payday Frequency and Method

​Arkansas law mandates that employers pay employees at least semi-monthly, meaning wages must be disbursed twice each month. Acceptable methods for wage payment include cash, check, direct deposit, and payroll debit cards. ​

Employers are required to establish regular paydays and adhere to them consistently. Any deviations from the established schedule can lead to penalties. ​

Arkansas has also enacted the Earned Wage Access Services Act, which regulates third-party providers offering employees access to earned wages before the regular payday. This law doesn’t apply to employers who directly provide such advances to their employees.

Paystub Requirements

​Arkansas law doesn’t require employers to provide pay stubs to employees.

Wage Deductions and Garnishments

​In Arkansas, employers are permitted to make wage deductions under specific conditions, and wage garnishment limits are primarily governed by federal law—with certain state-specific provisions.​

Deductions

Employers may deduct wages only under the following circumstances:​

• Legally required deductions: These include federal, state, and local taxes, as well as the employee’s share of Social Security, Medicare, and State Unemployment Insurance taxes.​
• Court-ordered deductions: These include wage garnishments, child support orders, or bankruptcy payments.
• Voluntary deductions: Deductions authorized in writing by the employee for their benefit, including for union dues, health and life insurance premiums​, charitable contributions​, retirement plan contributions​, and repayment of payroll advances​.

Employers can’t make deductions that would reduce an employee’s wages below the minimum wage, except for those required by law or authorized by the employee in writing.

Garnishments

Under the federal Consumer Credit Protection Act (CCPA), which Arkansas follows, the maximum amount that can be garnished from an employee’s disposable earnings (i.e., their wages remaining after legally required deductions) is the lesser of:​

• 25% of their disposable earnings, or
• The amount by which disposable earnings exceed 30 times the federal minimum wage ($7.25/hour), which is $217.50 per week.

There are some exceptions:

• Child support and alimony: Up to 50% of disposable earnings can be garnished if the employee is supporting another spouse or child—up to 60% if they don’t. An additional 5% may be garnished for support payments that are more than 12 weeks behind.
• Federal student loans: Up to 15% of disposable earnings can be garnished without a court order.​
• Unpaid taxes: The IRS can garnish wages without a court order, with exempt amounts based on the taxpayer’s standard deduction and number of dependents.

Arkansas provides additional protection for laborers and mechanics. Specifically, the first $25 of net wages per week is exempt from garnishment. Additionally, 60 days’ wages are exempt if the wages plus other personal property don’t exceed $200 for a single person or $500 for a head of household, provided the employee files a sworn statement with the court.

Final Paycheck Laws

​In Arkansas, employers are required to pay final wages to employees by their next regularly scheduled payday following a separation, regardless of whether the employee was terminated or resigned. Failure to do so within 7 days after the due date may result in the employer being liable for double the amount of wages owed.

Workers’ Compensation

Arkansas mandates that most employers provide workers’ compensation coverage to protect employees injured on the job. The system is governed by the Arkansas Workers’ Compensation Commission (AWCC) and includes specific rules on coverage, benefits, reporting, and dispute resolution.​

Coverage Requirements

Employers with 3 or more employees are generally required to carry workers’ compensation insurance in case of workplace injury. However, certain high-risk industries, such as construction, may require coverage even with fewer employees. Exemptions include:​

• Agricultural laborers.
• Domestic workers.
• Real estate agents.
• Employees of religious, charitable, or non-profit organizations.
• Railroad and maritime workers.
• Federal employees.​

Employers can obtain coverage through a licensed insurance carrier or apply to the AWCC for self-insured status. Employers are prohibited from deducting any portion of the premium from employees’ wages. 

Covered Injuries

Compensable injuries include those arising out of and in the course of employment, such as:​

• Accidental injuries identifiable by time and place.
• Repetitive motion injuries (e.g., carpal tunnel syndrome).
• Certain occupational diseases​.

Mental injuries are covered only if they result from a physical injury or a crime of violence. ​

Benefits Available

Workers’ compensation benefits in Arkansas may include:​

• Medical treatment: Covers necessary medical, surgical, and hospital services.​
• Temporary total disability (TTD): Provides wage replacement when an employee is completely unable to work.​
• Temporary partial disability (TPD): Compensates for reduced earnings when an employee can work but at a diminished capacity.​
• Permanent partial disability (PPD): Compensates for permanent impairment that doesn’t completely limit the ability to work.​
• Permanent total disability (PTD): Compensates for injuries that render an employee unable to earn any meaningful wages.​
• Death benefits: Provide compensation to dependents in the event of a work-related death. ​

There’s a 7-day waiting period for disability benefits, but if the disability extends beyond 14 days, compensation is calculated from the first day of disability.  ​

Reporting Requirements

To receive workers’ compensation benefits, employees must: 

• Report the injury to the employer immediately, preferably in writing.​
• Use Form N to provide written notice of the injury.
• Keep in mind that claims must be filed within 2 years of the injury. 

Once notified by employees, employers must:

• File Form 1 (First Report of Injury or Illness) with the AWCC.​ Claims must be filed with the AWCC within 2 years of the injury. 
• If the claim is accepted, the first compensation payment is due by the 15th day after the employer received notice of the injury.​
• If the claim is denied, a Form 2 (Notice of Controversion) must be filed within the same 15-day period. ​

Dispute Resolution Process

If a claim is denied or disputed:​

1. Mediation: The AWCC may schedule a mediation conference to facilitate a settlement between the parties.
2. Hearing: If mediation fails, a hearing before an Administrative Law Judge (ALJ) is conducted.​
3. Appeals: Decisions by the ALJ can be appealed to the full Workers’ Compensation Commission within 30 days. Further appeals can be made to the Arkansas Court of Appeals.

Unemployment Insurance

​In Arkansas, the Division of Workforce Services (ADWS) administers the Unemployment Insurance (UI) program, providing temporary financial assistance to eligible workers who are unemployed through no fault of their own. Below is a detailed overview of the program’s key aspects:​

Eligibility Requirements and Benefits

To qualify for UI benefits in Arkansas, an individual must:

• Be unemployed through no fault of their own, including through layoffs or reductions in force. Voluntary quits without good cause related to the work or discharges for misconduct may disqualify an individual.​
• Be physically and mentally capable of working and actively seeking employment.​
• Have earned wages in at least 2 quarters of the base period (i.e., the first 4 of the last 5 completed calendar quarters before the claim was filed) and have total base period wages of at least 35 times the weekly benefit amount. 
• Serve a waiting week (this is the first eligible week, which is unpaid).

The weekly benefit amount is calculated as 1/26 of the wages earned in the highest-paid quarter of the base period. As of current rules, benefits range from $81 to $451 per week and are available for up to 12 weeks.

Application Process

Individuals can file unemployment claims online through the EZARC system or by phone.​ They must provide their Social Security Number, contact information, details of the last employer, and banking information for direct deposit. ​

After the initial claim, weekly certifications must be filed via ArkNet at arknet.arkansas.gov or by phone using ArkLine. ​

Dispute Resolution and Appeals

Upon filing, claimants receive a notice detailing their WBA and maximum benefit amount.​ If a claim is denied, the claimant has 20 days to appeal to the Arkansas Appeal Tribunal. Further appeals can be made to the Arkansas Board of Review and subsequently to the Arkansas Court of Appeals. 

Employer Obligations

Employers must make UI contributions, which are a percentage of each employer’s taxable wages: the portion of wages subject to UI tax, currently capped at $7,000 per employee per calendar year. The percentage an employer must pay varies depending on their experience rating. For new employers, for instance, the current rate is set at 2%.

This total percentage includes the administrative assessment, a separate component of the UI tax, which was reduced to 0.1% for fiscal year 2025.

Employers must also:

• Respond to ADWS requests for information regarding separation within 10 days. Failure to respond promptly may result in benefit charges to the employer’s account. ​
• Post notices informing employees of their potential eligibility for UI benefits. ​

Workplace Rights and Protections

Discrimination and Harassment

Arkansas has no dedicated agency to enforce workplace protections against discrimination and harassment, so federal laws apply.

Under federal laws (like Title VII of the Civil Rights Act of 1964), it’s unlawful for employers to discriminate against employees or job applicants based on the following protected characteristics:

• Race and color
• National origin
• Religion
• Sex, including pregnancy, sexual orientation, and gender identity
• Age (40 years or older)
• Disability
• Genetic information, including family medical history

The US Equal Employment Opportunity Commission (EEOC) serves as the primary body for addressing these issues.

Leave Laws

X Family and Medical Leave	Arkansas doesn’t require family and medical leave. However, Arkansas employees may be covered by the federal Family and Medical Leave Act (FMLA), which applies to employers with 50 or more employees and provides up to 12 weeks of unpaid, job-protected leave for reasons including: • The birth of a child, plus caring for the newborn within the first year. • Placement of a child for adoption or foster care, plus caring for that child within the first year. • To care for a spouse, child, or parent with a serious health condition. • A serious health condition that makes the employee unable to perform the essential functions of their job. • Qualifying exigencies related to a spouse, child, or parent being on covered active duty (or being called to active duty) in the military.
X Paid Sick Leave	Neither Arkansas nor the federal government requires paid sick leave.
X Paid Family Leave	There’s no state-level paid family leave program or mandate in Arkansas, but FMLA rules may apply.
X Pregnancy and Parental Leave	Arkansas doesn’t mandate pregnancy or parental leave. However, Arkansas employees may be covered by the federal FMLA.
X Vacation and Personal Leave	Arkansas employers aren’t required to provide vacation or personal leave.

Military, Jury Duty, and Other Mandatory Leave

Military Leave	Military leave is required under federal law (USERRA). Under USERRA, employees who serve in the US Armed Forces are entitled to job-protected leave to perform military service. Such leave doesn’t have to be paid.
Jury Duty Leave	Employers must allow time off for jury duty and can’t penalize an employee for serving. Pay isn’t required, but retaliation is prohibited.
Voting Leave	Employers must provide time off to vote, but only if the employee’s work schedule doesn’t otherwise allow sufficient time for them to vote while polls are open. The leave doesn’t have to be paid.

Child Labor Laws

Minimum Working Age

For minors under 14, employment is generally prohibited, with limited exceptions (e.g., newspaper delivery, acting).​ From 16, minors can work. 

Work Permits

Minors under the age of 16 no longer need work permits, with the exception of those employed in the entertainment industry: They must register with the Arkansas Division of Labor Standards before they can be employed.

Hour and Work Restrictions

	14 and 15-year-olds	16 and 17-year-olds
When school is in session	• Maximum of 6 hours per day. • Maximum of 48 hours per week. • Cannot work before 6am or after 7pm.	Can’t work: • More than 6 days in any week. • More than 54 hours in any week. • More than 10 consecutive hours on any day.​ • More than 10 hours in a 24-hour period.​ • Before 6am or after midnight
When school isn’t in session	• May work up to 8 hours per day. • May work up to 48 hours per week.​ • May work until 9pm	Can’t work: • More than 6 days in any week. • More than 54 hours in any week. • More than 10 consecutive hours on any day.​ • More than 10 hours in a 24-hour period.​ • Before 6am or after midnight
Limits on types of work	All minors under 18 can’t work in certain occupations or activities, including: • Mining, logging, and sawmill operations.​ • Operating heavy machinery or power-driven equipment.​ • Exposure to radioactive substances or explosives.​ • Work involving exposure to harmful chemicals.​	All minors under 18 can’t work in certain occupations or activities, including: • Mining, logging, and sawmill operations.​ • Operating heavy machinery or power-driven equipment.​ • Exposure to radioactive substances or explosives.​ • Work involving exposure to harmful chemicals.​
	Complete lists of prohibited occupations for minors in Arkansas can be found here.
Limits for establishments that serve alcohol for consumption on-site	With the written consent of their parents or guardians, people 18 and up can handle beer and cooking wines at retail grocery establishments, and people 19 and older can sell and handle alcoholic beverages at licensed public establishments. No one under 21 may bartend or mix distilled spirits beverages.

Enforcement and Penalties

Act 687 of 2023 increased penalties for child labor violations: Civil penalties are up to $5,000 per violation, and willful violations may result in criminal charges.

Workplace Safety and Health

Arkansas isn’t a “state plan” state, so the federal Occupational Safety and Health Administration (OSHA) enforces all occupational safety and health regulations for private-sector employers. 

The Occupational Safety and Health Act of 1970 (OSH Act) is the primary federal law that governs workplace safety in the United States.

Under the OSH Act, employers must: 

• Provide a workplace that’s free from recognized hazards that could cause death or serious injury. 
• Comply with OSHA’s specific standards for their industry, whether that’s construction, manufacturing, healthcare, or another high-risk sector.
• Keep records of serious work-related injuries and illnesses
• Report work-related fatalities (within 8 hours) and serious injuries (within 24 hours).
• Provide safety training in a language and format that employees can understand. 
• Post the official OSHA safety poster in a visible location

Employees, in turn, have the right to request an OSHA inspection if they believe conditions are unsafe. They’re protected from retaliation when doing so. They must also follow safety rules, report hazards, and use any required protective equipment.

Because Arkansas doesn’t have a state OSHA plan, public-sector employees aren’t covered by OSHA protections. 

Labor Union Regulations

Arkansas has had a right-to-work law in place since 1944, and it was enshrined in the state constitution in 2016 (Amendment 34). This law:

• Prohibits employers and unions from requiring union membership or the payment of union dues or fees as conditions of employment.
• Applies to both public and private sector employees (with some limitations for public-sector bargaining rights).
• Makes union security agreements (e.g., closed shops or agency shops) unenforceable in Arkansas.

Union Membership Rules

Under Arkansas law and the National Labor Relations Act (NLRA):

• Employees have the right to join or not join a labor union.
• Employees can’t be compelled to pay dues, fees, or other charges to a union to get or keep a job.
• Union membership or non-membership can’t be used as a basis for hiring, firing, promotion, or other employment decisions.

Employers are prohibited from interfering with, restraining, or coercing employees in exercising their rights to organize, join a union, or refrain from such activity.

Employment Contracts and Severance

Employment Contract Laws

In Arkansas, the default employment relationship is at-will, which means that employers can terminate employees for any reason. Exceptions to at-will status include:

• Employment contracts (written, oral, or implied).
• Terminations that violate public policy (e.g., firing someone for filing a workers’ comp claim or refusing to commit an illegal act).
• Collective bargaining agreements or union contracts.

Restrictive Covenants

Arkansas allows restrictive covenants (i.e., non-compete and non-solicitation agreements), but courts enforce them only if they’re reasonable and necessary to protect legitimate business interests. 

Arkansas Code § 4-75-101 recognizes the enforceability of non-competes if:

• The employer has a protectable business interest, such as confidential information, customer relationships, or specialized training.
• The restriction is reasonable in time and geographic scope.
• The agreement isn’t against public policy and doesn’t impose an undue hardship on the employee.

As of July 2025, non-compete agreements for physicians are void under Arkansas law. This prohibition applies to all licensed physicians practicing medicine or osteopathy in the state.

Severance Pay

Severance pay isn’t required by Arkansas law or federal law.

Additional State-Specific Employment Laws

Mini-COBRA Health Coverage	Arkansas Mini-COBRA (Consolidated Omnibus Budget Reconciliation Act) applies to employers with fewer than 20 employees. It allows up to 120 days of continued health coverage for employees who lose coverage due to termination or other qualifying events if the employee was enrolled for at least 3 consecutive months.
Cessation of Healthcare Benefits Notice	Insurers must provide written notice when group health coverage ends, including the termination date and any continuation rights available under state law.
Independent Contractor Classification	This uses the IRS 20-factor test to distinguish employees from independent contractors. Misclassification can result in penalties and back taxes.
COVID-19 Employer Liability Protections	Executive Order 20-33 grants liability immunity for COVID-19 exposure claims if businesses follow public health guidelines. There’s no immunity for willful or reckless misconduct.

Legal Resources for Employers and Employees

The Arkansas Department of Labor and Licensing provides many resources for employers and employees looking to navigate legal issues. There are also several organizations that provide free legal aid to people in Arkansas, including Arkansas Law Help.

Arkansas Workforce Connections, the state’s workforce development agency, provides support to both employers and individuals looking to improve their skills or file unemployment paperwork. 

Disclaimer

The information presented on this website about labor laws in Arkansas is a summary for informational purposes only and is not intended as legal advice. However, laws and regulations regularly change and may vary depending on individual circumstances. While we have made every effort to ensure the information provided is up to date and reliable, we cannot guarantee its completeness, accuracy, or applicability to your specific situation. Therefore, we strongly recommend that readers seek guidance from their legal department or a qualified attorney to ensure compliance with applicable laws and regulations. Please note that we cannot be held liable for any actions taken or not taken based on the information presented on this website.