New Minimum Wage Law - Top 5 Things To Do

December 31, 2018

Arkansas voters approved a state minimum wage increase that will raise the minimum wage to $11.00 in increments over the next three years.

• $9.25 per hour effective January 1, 2019

• $10.00 per hour effective January 1, 2020

• $11.00 per hour effective January 1, 2021

All employers should ensure that non-exempt employees’ hourly wages reflect the applicable increase for each year.

Top 5 Things Employers Need To Do:

1. Increase hourly wages to at least $9.25 by January 1, 2019

2. Ensure that employees’ overtime rates (time and a half) also reflect the minimum wage increase.

3. If your employees are paid piece-rate or on some basis other than hourly, ensure that their regular rate exceeds the applicable minimum wage.

4. If you need assistance determining an employee’s regular rate, contact your attorney.

5. Update the postings in your workplace regarding the Arkansas minimum wage: CLICK HERE

Review these additional resources regarding the minimum wage increase:

• The text of Issue No. 5 passed by Arkansas voters: CLICK HERE

• Arkansas DOL News Release Regarding Minimum Wage Increase: CLICK HERE

For tipped employees

The minimum cash wage will remain $2.63 after January 1, 2019 for tipped employees. This means that the maximum tip credit will increase to $6.62 per hour. A tipped employee’s total hourly wage should equal $9.25 beginning January 1, 2019 ($2.63 minimum cash wage + $6.62 tip credit).

The information provided above is created by the attorney in the Labor and Employment Practice Groupat Friday, Eldredge & Clark, LLP. This is not a substitute for legal advice and should be considered for general guidance only. For more information or if you have further questions, please contact one of ourLabor and Employment Attorneys.