Employment and labor laws in Arkansas [Updated 2024]

Employment laws are a crucial set of guidelines that safeguard employees from discrimination and unsafe or unfair working conditions. The consequences for employers who violate these regulations are extremely serious, so it’s important to remain knowledgeable of the law. This can be a challenge, however—US employers are required to follow both federal laws and state-level regulations, which can change frequently.

Arkansas has taken many steps in recent years to improve the economic development prospects for the state, including making bureaucratic processes friendlier to entrepreneurs and business owners. If you’re hiring there—whether in Little Rock or the beautiful, rugged Ozarks region—you must understand the state’s specific laws to avoid penalties.

Make sure you stay in compliance with this primer on Arkansas labor laws. And you can scale your business faster by letting Rippling’s Professional Employer Organization service handle your tax registration and management.

Employment vs. labor law: What’s the difference?

While they share some commonalities, labor law is actually a subset of employment law. That’s right—while often used interchangeably, “employment law” and “labor law” are two legally distinct terms. Here’s the difference: When a matter concerns the relationship between an employer and an employee, it falls under the category of employment law. When it’s between a labor union and an employer, it falls under the subcategory of labor law.

Take a closer look at what each one encompasses:

• Topics like wage and work hour laws, overtime pay, and workplace discrimination fall under employment law.
• Topics like union membership and dues or collective bargaining agreements fall under labor law.

Wages and hours in Arkansas

Arkansas employers have had quite a bit to keep track of in recent years, not least of which was the change in state minimum wage rates. Arkansas minimum wage is higher than the federal rate, and employers must also be familiar with the tenets of the FLSA to ensure they adhere to the proper overtime laws.

Minimum wage in Arkansas

The Arkansas Minimum Wage Act applies to employers with four or more employees. Currently, the state minimum wage rate for hourly employees is $11.00 per hour, which is higher than the federal minimum wage of $7.25 an hour. Tipped employees must receive at least $2.63 per hour.

Setting hourly wages for employees can be a challenge, especially when employees live in different states. Rippling helps you keep track and remain in compliance by automatically flagging minimum wage violations based on the state laws where employees are located.

Overtime pay in Arkansas

The state of Arkansas complies with the overtime laws set forth by the Fair Labor Standards Act (FLSA). According to the Act, any hours worked over 40 in a workweek are considered overtime. Employees are entitled to overtime pay for additional hours worked at a rate of 1.5x their usual hourly wage.

To ensure you adhere to Arkansas’s overtime pay laws, Rippling’s payroll software automatically applies the correct pay rates when an employee’s hours trigger overtime compensation requirements.

Breaks and rest periods in Arkansas

Arkansas employers aren’t legally required to give employees rest or meal breaks, paid or unpaid. The only exception is for minors under 16 years of age working in the entertainment industry—the state’s child labor laws mandate employers to give them breaks.

Leaves of absence in Arkansas

Sometimes, it’s necessary for an employee to take time off from work to recover from an illness, deal with a serious medical condition, or so they can care for a loved one. In these situations, they shouldn’t have to worry about whether they’ll have a job when the crisis is over. That’s why the federal Family and Medical Leave Act (FMLA) was enacted—it provides 12 weeks of job-protected leave to eligible employees for every 12-month period. 

To be eligible for FMLA job-protected leave, employees must meet the following criteria:

• Have worked at the company for more than 12 months
• Have worked for 1,250 minimum hours in the 12-month period before their leave date
• Work for a covered employer that has 50 or more employees within 75 miles

While many states have some sort of state-level program in addition to the FMLA, Arkansas isn’t one of them. Early in 2023, the Natural State did pass a Paid Family Leave bill, but this bill allows insurance companies to offer Paid Family Leave coverage to employers who choose to purchase it. It isn’t mandatory. Otherwise, Arkansas employees who are eligible can take unpaid leave under the FMLA; the state also allows FMLA leave to be used for other qualifying situations in addition to the ones listed by the federal government, such as a difficult pregnancy. 

Paid sick leave in Arkansas

Arkansas has no specific legislation that requires employers to provide paid sick leave as a mandatory benefit. 

Rippling allows you to customize and automate your leave policy, giving you full visibility into how employees are utilizing it.

Workplace safety in Arkansas

Workplace health and safety across the United States is managed by the federal Occupational Safety and Health Administration (OSHA). The passage of the landmark Occupational Safety and Health Act of 1970 resulted in private employers and those in the federal government being legally required to maintain a safe workplace for all employees. Since then, employers have taken steps to lower the risk of accidents in the workplace, like ensuring workers get safety training and PPE and creating and implementing company-wide safety policies.

Some states have their own state-level plans in addition to OSHA’s federal guidelines, but Arkansas isn’t one of them. Employers in the Natural State need to familiarize themselves with OSHA regulations and make sure they’re in compliance; the agency has offices throughout Arkansas that are there to monitor employers and provide assistance to employers and employees alike. Furthermore, the agency’s website—osha.gov—has many helpful resources to make your company a safe and healthy place to work, including an on-site consultation program for Arkansas employers, information on recordkeeping and other best practices, and more.

You are legally required to provide workers’ compensation coverage to employees who are hurt or fall ill due to a work-related cause in Arkansas. Rippling PEO offers a convenient pay-as-you-go workers’ comp plan that doesn’t require you to pay upfront for the whole year, so you can focus on what you do best: growing your Arkansas business.

Discrimination and harassment laws in Arkansas

Both federal law and Arkansas state laws—such as the Arkansas Civil Rights Act–prohibit discrimination in the workplace based on the following characteristics:

• Religion
• Race and ethnicity
• Gender
• National origin
• Physical or mental disability
• Age (40 or older)

Arkansas’s anti-discrimination laws cover all employers in the state; there are no exemptions to the rules based on company size. Unlike many other states, however, Arkansas has no specific department that oversees the enforcement of anti-discrimination laws. Instead, employees and job applicants who believe they may have been victims of discrimination can file a complaint with the local EEOC office; the nearest one is in Memphis, TN. 

In many cases, harassment is considered to be a form of discrimination. Whenever an employee must withstand unwelcome conduct as a condition of employment or unwelcome behavior—such as threats, physical or sexual assault, or jokes and insults based on one of the protected characteristics above—this is considered harassment.

Sexual harassment training requirements vary by state. While Arkansas has no official requirements for employers, it’s crucial to be aware that as an employer, you are responsible not only for your own words and actions but for those of your employees, as well. That’s just one of the reasons sexual harassment training is so important—it gives everyone boundaries so all of your employees feel safe and respected at work.

Rippling’s Learning Management System is pre-loaded with core sexual harassment training courses to ensure each employee meets the state requirements based on where they live. 

Unions in Arkansas

A group of employees who organize with the intention of advancing fair working conditions is called a labor union. Workers in a labor union act collectively and negotiate with their employer about various employee rights topics, such as more time off, better benefits, or higher wages. 

The National Labor Relations Act (NLRA) is a federal union-related law that guarantees employees the right to:

• Organize or join a union so they can effectively negotiate with their employer.
• Bargain collectively and choose their own representatives to negotiate collective bargaining agreements. 
• Discuss the conditions and terms of their employment freely with coworkers.
• Take action to improve conditions at their workplace, such as inviting a union to come and speak to workers about organizing. 
• Strike and picket.
• Abstain from joining a union entirely.

The NLRA legally prohibits unions and employers alike from forcing employees to either join or not join a union. Neither party is allowed to threaten, bribe, prevent, or discourage employees from making that choice.

There is state-level legislation concerning unions in addition to the NLRA, including “right-to-work” laws. Right-to-work laws, also called workplace freedom laws, are just that: They give employees the freedom to decide if they’ll join a union or not. Arkansas is a right-to-work state; in fact, it was one of the first two states to enact such legislation (the other was Florida) back in 1944. 

FAQs about Arkansas labor and employment laws

Are independent contractors covered under Arkansas employment laws?

No. The rights full-time employees receive don’t extend to independent contractors in the Natural State. You must, however, classify employees and independent contractors correctly to avoid fines and penalties. Our analyzer tool will give you peace of mind that you're classifying workers correctly and that you’re in compliance with the local government’s employment regulations.

Does at-will employment exist in Arkansas?

Yes, Arkansas is an at-will employment state. This means employers are free to terminate a worker’s employment without providing notice or a reason. As the Arkansas Department of Labor and Licensing notes, however, employers have the right to terminate employees for any reason so long as that reason isn’t illegal—in other words, employees are still protected from being fired due to discrimination.

Does Arkansas have pay transparency laws?

No, there are no pay transparency requirements for employers in the state of Arkansas.

What privacy rights do employees have in Arkansas?

The state of Arkansas provides employees with various privacy rights. The passage of a landmark social media privacy law, for instance, safeguards workers from being forced to provide employers with access to their personal social media accounts. There’s also the Arkansas Personal Information Protection Act, which requires employers to implement and maintain cybersecurity measures that will protect sensitive personal data from breaches.

Are background checks legal in Arkansas?

Yes—employers in the state of Arkansas are permitted to run background checks on job applicants, with some limitations. For instance, the government recently enacted a social media law that prohibits employers from requiring applicants to provide access to their personal social media accounts as a condition of employment.

Are whistleblowers protected in Arkansas?

Public employees—including Arkansas state employees—are protected from retaliation by the Arkansas Whistle-Blower Act. While there’s no official legislation for private employees, they are safeguarded from retaliation by Arkansas’ common law.

Is workers’ compensation coverage required in Arkansas?

Yes. The Arkansas Workers’ Compensation Commission requires all employers with three or more employees to provide workers’ comp insurance that covers employees in the event they sustain a work-related injury or illness.

Are there required healthcare benefits in Arkansas?

Federal law requires all Arkansas employers who have 50 or more full-time employees to provide health insurance coverage.

Are Arkansas employers required to provide bereavement leave?

No, Arkansas employers are under no federal or state mandates to give employees either bereavement leave or time off—paid or otherwise—to attend a funeral.

What employee protections are available in Arkansas if layoffs occur?

Businesses that are covered by the federal Worker Adjustment and Retraining Notification (WARN) Act must give employees 60 days’ notice before laying them off.

Disclaimer: Rippling and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any related activities or transactions.