AR · state labor law, 2026
Arkansas labor laws: minimum wage, overtime, leave, final pay and breaks
Arkansas pays well above the federal floor, but only at businesses with four or more employees, and it punishes a late final paycheck by doubling it.
Arkansas and federal rules checked on official sources on · Checked by Radif Partners · How we calculate
- Minimum wage now
- $11.00/h
- statewide
- Next change
- none announced
- checked October 11, 2026
- Tipped cash wage
- $2.63/h
- tips must make up the rest
- Overtime
- 40 h/week
- state law
- Paid sick leave
- no state law
- employer policy
- Paid family leave
- no program
- FMLA is unpaid
The Arkansas minimum wage is $11.00 an hour, the same figure since January 1, 2021, and it binds employers with four or more employees. A full-time job at that rate pays $22,880 a year, $7,800 more than the federal floor. A business with three workers or fewer falls outside the state act and owes only the federal $7.25, and only if the FLSA covers it. Tipped employees can start from a cash wage of $2.63 as long as tips raise them to $11.00, with the employer paying any shortfall. Overtime is time and a half after 40 hours actually worked in a week, with no daily rule. The state sets no paid sick leave, no paid family leave and no adult breaks. When an employer dismisses someone, the last wages are due by the next regular payday, and if they are more than seven days late after it, the employer owes double.
Gross pay for this week in Arkansas
$440
Time and a half after 40 hours in a week
| Minimum wage in Arkansas now | $11 an hour |
| Your rate against it | At or above the minimum |
| Overtime: none this week | $0 |
| Paid sick leave earned in a year | No statewide paid sick leave law |
| Breaks owed in a 8-hour shift | None for adults (minors only) |
| Final paycheck if fired | by the next regular payday (if not paid within 7 days of that payday, the employer owes double the wages due) |
| Unused vacation at the end | Paid out if the employer policy or contract says so |
| Paid family leave | No state program |
40 hours a week at $11. State rule applied. Minimum wage, overtime and leave rules have exceptions by employer size and industry. How this is calculated.
The four-employee line
The Arkansas Minimum Wage Act does not reach every workplace. It applies to employers with four or more employees, and the Labor Standards Division states that a business covered by both the state act and the FLSA must pay whichever rate is higher, which today is the state's $11.00. A family shop with three staff is a different case: no state floor applies, and the federal $7.25 applies only if the business meets federal coverage rules. For a worker the difference over a year of full-time hours is $7,800, so the headcount of a small employer is worth asking about before accepting a job. Employers may also apply to the Division for a reduced wage for students, using a form posted on the agency site.
A late final paycheck can cost the employer double
Arkansas attaches a price to delay directly in its final pay rule. When a company terminates an employee, wages are due by the next regular payday, and if payment has not arrived within seven days of that payday, the employer owes the employee double the wages due. Take a warehouse worker let go with $1,200 in earned pay: paid on time, the check is $1,200; paid more than a week after the payday, the amount owed becomes $2,400. Vacation, sick pay and holiday pay are included only when a company policy promises them, and the Division asks for a copy of that policy with any claim.
Is your unused PTO paid out?
Arkansas: payout
Depends on the written policy
| Value of the balance | $880 |
| When it is due | by the next regular payday (if not paid within 7 days of that payday, the employer owes double the wages due) |
Who can file a claim with the state
The Labor Standards Division handles wage claims of $2,000 or less, filed by workers who earn $50,000 a year or less. A larger dispute, or one from a higher earner, goes to court, where Small Claims Court can be used without an attorney. The Division decides the claims it accepts; for a larger amount, an employment lawyer can review the facts and the policy documents.
Tipped pay and weekly overtime
A server paid the $2.63 cash wage who averages $6 an hour in tips reaches $8.63, still $2.37 short of the minimum, and the employer must make up that gap for every hour of the week. Overtime is counted on the week only. A shift lead on $14 an hour who works five 10-hour days gets 10 overtime hours and $770 for the week, while four 10-hour days earn no premium at all. Salaried staff face the federal test of $684 a week, because Arkansas sets no higher level. Overtime rules by state shows where daily overtime exists.
Do your tips cover the minimum wage?
Employer top-up owed per hour
$4.37
| Cash wage | $2.63 |
| Cash wage + tips | $6.63 |
| Minimum wage in Arkansas | $11.00 |
| Top-up over a 30-hour week | $131 |
Leave and breaks
Sick days and vacation depend on company policy. Job-protected leave comes from the federal FMLA, up to 12 unpaid weeks for eligible workers. Neither state nor federal wage law requires a meal period or a rest break for adults in Arkansas; the only break rule protects children under 16 employed in the entertainment industry.
Arkansas employment rules at a glance, 2026
Minimum wage schedule
| From | Who it covers | Rate | Note |
|---|---|---|---|
| January 1, 2021 | Statewide (employers with 4 or more employees) | $11.00 | unchanged since January 1, 2021 |
Workers covered by both laws get the higher rate. Employers may apply to the Labor Standards Division for a reduced minimum wage for students (application form on the agency page). Read the Arkansas rule.
Overtime
Time and a half after 40 hours in a week. The salary test for exempt employees is the federal $684 a week. time and a half after 40 hours actually worked in a workweek; no daily overtime source
Sick leave and family leave
Arkansas has no statewide paid sick leave law for private employers; leave depends on the employer's policy or a city ordinance. No state paid sick leave law for private employers; sick pay is owed only if company policy provides it. source
No state paid family leave insurance: the federal FMLA gives eligible workers up to 12 weeks of unpaid, job-protected leave. source
Final paycheck and unused vacation
Fired or laid off: by the next regular payday (if not paid within 7 days of that payday, the employer owes double the wages due). Quitting: no state statute sets a deadline (federal law sets none either). Vacation: vacation pay is owed at separation only if the company policy provides it. source vacation rule
Meal and rest breaks
No meal break is required for adults by state law. No paid rest break is required for adults. Rest breaks are required only for children under 16 employed in the entertainment industry. source
Unions and dismissal
Employment is at will: either side may end it at any time, except for an illegal reason such as discrimination or retaliation, or against a contract.
Also worth knowing in Arkansas
- The state minimum wage law applies only to employers with 4 or more employees; when both state and federal law apply, the higher rate ($11.00) must be paid. source
- An employer that pays final wages more than 7 days after the next regular payday owes the worker double the wages due. source
- The Labor Standards Division handles wage claims of $2,000 or less, and only for workers earning $50,000 a year or less; larger claims go to court (Small Claims Court possible without an attorney). source