Arkansas Minimum Wage: Current Rate & Scheduled Increases

The Fair Labor Standards Act (FLSA), 29 U.S.C. § 206, establishes the federal minimum wage at $7.25 per hour, which has remained unchanged since 2009. This federal floor applies to all employers engaged in interstate commerce with at least two employees. The FLSA prohibits paying covered employees less than the federal minimum for all hours worked, including compensatory time or reduced rates for certain job classifications.

The U.S. Department of Labor (DOL) enforces the FLSA through the Wage and Hour Division. Covered employees are entitled to back pay for all violations, plus liquidated damages equal to the unpaid wages, and the employee may recover reasonable attorney's fees and court costs. The FLSA permits no deductions for uniforms, tools, or equipment that reduce wages below the minimum. Exempt categories exist for certain executives, professionals, and agricultural workers, but these exemptions are narrowly construed.

States may set higher minimum wages than the federal floor. When state and federal minimums differ, employers must pay whichever rate is higher. The FLSA does not preempt state minimum wage laws; instead, it establishes the federal floor upon which states may build stronger protections.

Arkansas Code Title 11, Chapter 4, Section 11-4-203 establishes that the Arkansas minimum wage is adjusted annually on January 1 based on the Consumer Price Index. As of January 1, 2024, the state minimum wage is $11.00 per hour. This rate is significantly higher than the federal minimum wage of $7.25 per hour, making Arkansas state law the operative standard for all covered employers.

Arkansas minimum wage law applies to employers with one or more employees working in the state, with narrow exceptions for certain agricultural operations and family businesses. Unlike federal law, Arkansas law does not provide a separate lower minimum wage for tipped employees; all employees must receive at least $11.00 per hour in combined wages and tips. If tips do not bring an employee to the minimum wage, the employer must pay the difference. This is stricter than the federal tip credit system, which allows employers to count tips toward the minimum wage requirement if they meet specific conditions.

The state law covers all employees regardless of industry or job classification, with limited exemptions narrower than the FLSA. Interns and trainees may be paid less only under specific circumstances defined by regulation, and those circumstances are more restrictive than federal law. Arkansas also prohibits wage deductions for uniforms, equipment, or other costs that reduce total compensation below the minimum wage.

Remedies under Arkansas law include recovery of unpaid wages, a penalty equal to the unpaid wages, plus reasonable attorney's fees and court costs. Employees may also pursue claims for unjust enrichment or breach of contract, providing multiple legal avenues for enforcement. The statute of limitations for bringing a civil action is two years from the date of the violation, or three years if the violation is deemed willful.

Arkansas minimum wage law contains narrow exceptions that are more limited than federal law. Agricultural workers on farms operated by the employer are exempt from the minimum wage requirement, but agricultural processing facilities are not exempt. Family businesses where all employees are family members of the owner may be exempt under certain conditions, though this exception is narrowly applied. Small retail or service businesses with total annual gross sales under $500,000 are not covered by state law and may follow federal minimums only, though federal minimum still applies.

Interns and student learners may be paid below minimum wage only if they meet specific regulatory criteria and the employment is part of a recognized training program. Trainees in their first 90 days of employment in certain occupations may be paid 85 percent of minimum wage, but this exception requires documentation and applies only to specific job categories. Employees under age 20 may be paid $4.25 per hour for their first 90 calendar days of employment anywhere, under federal law, but Arkansas state law does not recognize this youth minimum exception, so employers must pay the full state minimum to all employees regardless of age.

At-will employment principles do not override minimum wage requirements. An employer cannot contractually waive an employee's right to minimum wage, and such waivers are void as against public policy. Commission-based compensation must still result in minimum wage for all hours worked. Piece-rate compensation systems must also ensure that employees earn at least the minimum wage when averaged across all hours worked in a pay period.

Step 1: Document the violation meticulously. Keep records of all pay stubs, timesheets, and communications regarding compensation. Document the hours you worked for each week or pay period, the hourly rate you were paid, and calculate what you should have earned under the $11.00 minimum wage. Take screenshots of paystubs, retain emails from your employer about pay rates, and write down any statements your employer made about not paying minimum wage. Create a timeline showing when the underpayment occurred and how many pay periods were affected.

Step 2: File an internal complaint with your employer or HR department, if practical. Send a written email or letter to your manager or HR stating that you believe you have not been paid the Arkansas minimum wage and request immediate corrective action and payment of all back wages. Request a written response within 10 business days. Keep a copy of your complaint and any response. This step is not legally required but creates documentation that may be useful later and may resolve the issue quickly.

Step 3: File a wage claim with the appropriate agency. You have two main options: (1) File a civil action in Arkansas state court (Circuit Court in your county) or with an attorney to recover unpaid wages, penalties, and attorney's fees under Arkansas Code § 11-4-212. The deadline is two years from the date of the violation (three years if willful). You will need your employment contract, paystubs, timesheets, and documentation of hours worked. (2) File a complaint with the U.S. Department of Labor Wage and Hour Division if the violation also involves federal FLSA requirements. The federal deadline is 180 days from the violation in non-deferral states. File online at www.dol.gov/agencies/whd or call 1-866-4-USDOL. Provide your name, contact information, employer name and address, dates of employment, job title, hourly rate paid, and description of the violation.

Step 4: Expect the investigation process to take 30 to 90 days if filed with the Department of Labor. The Wage and Hour investigator will contact your employer for records, conduct interviews, and review payroll documents. If you file in state court, discovery will occur over two to six months where your attorney requests documents from the employer and may depose witnesses. The employer may argue that they paid you correctly, that you were misclassified, or that an exemption applied. Be prepared to provide detailed testimony about your work duties and compensation.

Step 5: Consult an employment attorney specializing in wage and hour law before filing, or certainly within 30 days of discovering the violation. An Arkansas employment attorney can evaluate the strength of your claim, calculate damages including penalties and attorney's fees, and determine whether federal FLSA claims also apply. Many employment attorneys work on contingency for wage claims, meaning they take a percentage of the recovery rather than an hourly fee. The consultation is often free. An attorney will help you decide whether to file in state or federal court, and whether to join with other employees in a collective action if multiple workers were underpaid.