Arkansas – Wage Payment Laws

Arkansas Wage Payment Laws



Frequency of Wage Payments

Corporations doing business in Arkansas must pay their employees semi-monthly. Corporations with annual gross income of $500,000 or more can pay management level and executive employees who are exempt under the Fair Labor Standards Act (FLSA) and who earn a annual gross salary of more than $25,000 a minimum of once per month. Arkansas Code 11-4-401



Manner of Wage Payments

An employer may pay employees by cash, check, or direct deposit into the employee’s account. If an employer pays an employee by check drawn on an account with insufficient funds, the employee can insist on being paid future wages in cash. Arkansas Code 11-4-402



Direct Deposit

An employer may pay wages by direct deposit. However, an employee may opt out of direct deposit by providing the employer a written statement requesting payment by check. Arkansas Code 11-4-402



Payment upon Separation from Employment

Employees who are fired, discharged, terminated, or laid off

When an employer discharges or lays off an employee, no matter the reason, the employer must pay the employee all wages due on the within 7 days of the discharge provided the employee has requested or demanded payment. Arkansas Code 11-4-405. If the employee has not requested or demanded payment, the employer must pay the wages by the next regularly scheduled payday, absent some agreement between the employer and the employee to the contrary. AK DOL FAQs

Employees who quit or resign

When an employee voluntarily quits or resigns employment, the employer must pay the employee by the next regular pay day. AK DOL FAQs

Employees who are suspended or resigns due to a labor dispute (strike)

When an employee leaves employment as a result of a labor dispute, the employer must pay the employee by the next regular pay day. AK DOL FAQs.



Wages in Dispute

Arkansas has no laws addressing an employer’s obligation to pay wages when there is a dispute with an employee regarding all or a portion of wages due.



Deductions from Wages

Arkansas does not have any laws regarding what deductions may or may not be taken from an employees paycheck or whether an employee must provide written consent prior to any deduction. The lack of a law prohibiting deductions likely means an employer can withhold or deduct wages from an employees pay check for:

  • cash shortages
  • breakage, damage, or loss of the employer’s property
  • dishonored or returned checks
  • required uniforms
  • required tools
  • other items necessary for employment

In accordance with federal law, an employer may not make deductions for any of the above-listed items if it would cause the employee to earn less than federal minimum wage for the period in which the deduction was made. DOL Fact Sheet #16.

Deductions to pay for an employee’s portion of any fringe benefit would also be permissible.



Uniforms, Tools and Other Items Necessary for Employment

Arkansas does not have any laws requiring an employer to pay for uniforms, tools, or other items necessary for employment.



Pre-hire Medical, Physical, or Drug Tests

Arkansas does not have any laws requiring an employer to pay for pre-hire medical, physical, or drug tests



Notice of Wage Reduction

Arkansas does not have any laws addressing when or how an employer may reduce an employee’s wages or whether an employer must provide employees notice prior to instituting a wage reduction.



Statement of Wages (Pay Stub)

Arkansas does not have any laws requiring employers to provide employees of notice of wage rates, dates of pay, employment policies, fringe benefits, or other terms and conditions of employment.



Record Keeping Requirements

An employer must retain on record for 3 years:

  • the name, address, and occupation of each employee;
  • the rate of pay for each employee;
  • the amount paid each pay period to each employee; and
  • other related payroll information.

Arkansas Code 11-4-217



Notice Requirements

Arkansas does not have any laws requiring employers to provide employees of notice of wage rates, dates of pay, employment policies, fringe benefits, or other terms and conditions of employment.