Arkansas's minimum wage is $11.00 per hour for employers with 4 or more employees.
Enacted via Initiated Act 5 of 2018, the Arkansas Minimum Wage Act sets the state's minimum wage significantly above the federal floor. This ensures a higher base pay for a substantial portion of the state's workforce, with specific provisions for tipped employees and a clear employer size threshold.
AR Minimum Wage Act $11.00 (4+ Employees)
Ark. Code 11-4-201 — $11.00 since Jan 1, 2021 (Initiated Act 5 of 2018). 4+ employee threshold. No CPI indexing. Tipped wage $2.63 with $20/month threshold.
What those rules do as a Arkansas shift is created.
Teambridge ensures every shift created in Arkansas automatically adheres to the state's minimum wage requirements, preventing underpayment from the moment a schedule is published.
Minimum Wage Enforcement
Teambridge automatically validates that all hourly wages for non-exempt employees in Arkansas meet or exceed the $11.00 state minimum wage. Any attempt to schedule a shift below this rate for an eligible employee triggers an immediate flag, requiring manager approval or correction.
Tipped Wage Compliance
For tipped employees, Teambridge ensures the direct wage paid is at least $2.63 per hour. The system monitors reported tips to confirm that the combined direct wage and tips meet the $11.00 state minimum wage. If the tip credit falls short, an alert is generated to ensure the employer makes up the difference, maintaining compliance with Ark. Code § 11-4-210.
Employer Coverage Threshold Check
Teambridge's system incorporates the 4+ employee threshold for the Arkansas Minimum Wage Act. It automatically applies the state minimum wage rules only to locations or entities identified as having four or more employees, preventing misapplication to smaller businesses that might only be subject to federal FLSA.
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Arkansas employers with 4 or more employees must pay a minimum of $11.00 per hour.
The Arkansas Minimum Wage Act, established by Initiated Act 5 of 2018, mandates a state-specific minimum wage that applies to a broad range of employers. This rate is higher than the federal minimum wage and has specific provisions for tipped workers.
Ark. Code § 11-4-201 et seq. (Arkansas Minimum Wage Act)
Establishes a state minimum wage of $11.00 per hour for all employers employing four (4) or more employees. This rate has been in effect since January 1, 2021, and is not subject to annual adjustments based on the Consumer Price Index (CPI).
Exemptions: Certain employees are exempt from the Arkansas Minimum Wage Act, including: agricultural workers, domestic service employees, outside salespeople, and employees of certain non-profit organizations or government entities, provided they meet specific criteria outlined in the statute.
Tipped Employee Provisions
Under Ark. Code § 11-4-210, employers of tipped employees may take a tip credit against the state minimum wage. The direct cash wage paid to a tipped employee must be at least $2.63 per hour, provided the employee regularly receives more than $20 per month in tips. If the employee's tips combined with the direct wage do not meet the $11.00 state minimum wage, the employer must make up the difference to ensure the employee's total compensation equals the state minimum wage.
Employer Coverage Threshold
The Arkansas Minimum Wage Act applies to any employer that employs four (4) or more employees. This threshold is lower than the federal Fair Labor Standards Act (FLSA) enterprise coverage threshold, meaning some smaller businesses in Arkansas that might not be covered by FLSA are still subject to the state's minimum wage requirements.
How Teambridge keeps your Arkansas operations compliant with minimum wage.
Teambridge integrates the specific requirements of the Arkansas Minimum Wage Act directly into your scheduling and payroll processes, eliminating manual checks and reducing the risk of non-compliance.
Automatic Minimum Wage Enforcement
When you set an hourly rate for an employee in Arkansas, Teambridge instantly verifies it meets the $11.00 state minimum. If a rate is below this threshold for an eligible employee, the system flags it, preventing accidental underpayment before a shift is even worked.
Dynamic Tip Credit Management
For your tipped employees, Teambridge tracks their direct wage ($2.63/hour minimum) and their reported tips. The system continuously calculates if their combined earnings meet the full $11.00 minimum wage. If a shortfall occurs, Teambridge alerts you, ensuring you can make up the difference in accordance with Ark. Code § 11-4-210.
Intelligent Employer Coverage
Teambridge accounts for Arkansas's "4+ employee" threshold. The system applies the state minimum wage rules only to your business units or locations that meet this criterion, ensuring federal FLSA rules apply where appropriate for smaller entities, and state rules where mandated.
Comprehensive Compliance Logs
Every wage validation, tip credit adjustment, and compliance check is meticulously logged. Teambridge provides detailed, easily accessible records, simplifying audits and demonstrating your adherence to Arkansas's minimum wage laws.
People also ask.
What is the current minimum wage in Arkansas?
As of January 1, 2021, the minimum wage in Arkansas is $11.00 per hour. This rate was established by Initiated Act 5 of 2018.
Does the Arkansas minimum wage apply to all employers?
The Arkansas Minimum Wage Act applies to employers who employ four (4) or more employees. Employers with fewer than four employees may still be subject to the federal minimum wage under the FLSA if they meet the federal criteria.
How does the minimum wage apply to tipped employees in Arkansas?
For tipped employees, employers must pay a direct cash wage of at least $2.63 per hour. If the employee's tips, combined with this direct wage, do not reach the $11.00 state minimum wage, the employer is legally obligated to make up the difference.
Is the Arkansas minimum wage indexed to inflation?
No, the Arkansas minimum wage is not currently indexed to the Consumer Price Index (CPI) or any other inflation metric. The rate of $11.00 per hour has been fixed since January 1, 2021, unless new legislation is passed.
Are there any exemptions to the Arkansas Minimum Wage Act?
Yes, certain categories of employees are exempt, including agricultural workers, domestic service employees, outside salespeople, and employees of specific non-profit organizations or government entities, provided they meet the statutory definitions for exemption.
What is the difference between Arkansas's minimum wage and the federal minimum wage?
Arkansas's minimum wage is $11.00 per hour, which is higher than the federal minimum wage of $7.25 per hour. When state and federal minimum wages differ, employers must pay the higher of the two rates. Arkansas also has a lower employer threshold (4+ employees) compared to federal FLSA rules.