Beginning Friday, Jan. 1, 2021, the minimum wage in Arkansas will increase to $11 per hour. In 2018, Arkansas voters approved a ballot initiative to incrementally raise the minimum wage to $11 an hour by 2021. The increase in minimum wage offers employers an opportunity to evaluate their pay practices.
The Arkansas Minimum Wage Act covers employers with 4 or more employees. Employers covered by the federal Fair Labor Standards Act (FLSA) are also covered by the Arkansas law if they have 4 or more employees. An employer covered by both laws must pay the highest minimum wage. In most cases, an employer has to pay overtime (one and one-half times the regular rate of pay) to non-exempt employees for all hours actually worked in excess of 40 hours in a workweek.
Top 5 Things Employers Need To Do:
- Increase hourly wages to at least $11 by January 1, 2021
- Ensure that employees’ overtime rates (time and a half) also reflect the minimum wage increase.
- If your employees are paid piece-rate or on some basis other than hourly, ensure that their regular rate exceeds the applicable minimum wage.
- If you need assistance determining an employee’s regular rate, contact your attorney.
Update the postings in your workplace regarding the Arkansas minimum wage: Click here
For tipped employees
The minimum cash wage will remain $2.63 for tipped employees. A tipped employee’s total hourly wage should equal $11 beginning January 1, 2021 ($2.63 minimum cash wage + $8.37 tip credit).
Click here to view Department of Labor’s Fact Sheet.
Click here to view the Department of Labor's Minimum Wage Rules.
Disclaimer: The information included here is provided for general informational purposes only and should not be a substitute for legal advice nor is it intended to be a substitute for legal counsel. For more information or if you have further questions, please contact one of our Attorneys.