Arkansas Wage Payment Laws
Topics Covered
- Frequency of wage payments
- Manner of wage payments
- Direct deposit
- Payment upon separation from employment
- Wage in dispute
- Deductions from wages
- Uniforms, tools, and other equipment necessary for employment
- Pre-hire medical, physical, or drug tests
- Notice of wage reduction
- Statement of wages (pay stubs)
- Record keeping requirements
- Notice requirements
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 within seven (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. AR 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. AR 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. AR 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 employee’s paycheck 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.
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.