At-Will Employment
In Arkansas the general rule is that employment is terminable at will by either party in the absence of an employment contract for a definite period. Employees may be terminated for any reason not expressly prohibited by federal, state, or local law.
Courts recognize implied contracts when there is an express personnel manual provision to only discipline or terminate an employee for cause. Employers may avoid implied contracts by having employees sign an express written at-will agreement and by including an express disclaimer reserving the company's right to deviate from policies in the employee handbook.
For comprehensive training on maintaining at-will employment, visit EmployerESource and explore our training webinars. These resources offer valuable information for business owners and managers seeking to stay informed and compliant.
For any questions about at-will employment and how to preserve this relationship, please contact EmployerESource. We’re here to provide expert guidance and support.
Deductions from Wages
Employers must comply with wage laws regarding deductions from minimum wage and overtime pay. The following provisions outline the limitations and permissible deductions under Arkansas law.
Prohibited Deductions from Minimum Wage and Overtime Pay:
Employers cannot make deductions from minimum wage and overtime wages except for:
Deductions authorized by law
Employee-authorized deductions that are for the employee’s benefit and provided in writing.
Employers cannot deduct wages for:
Spoilage or breakage of items
Cash or inventory shortages or losses
Fines or penalties for lateness, misconduct, or an employee quitting without notice
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For any questions or to receive a customized Payroll Deduction Form, please contact EmployerESource. We’re here to assist you in ensuring compliance and streamlining your processes.
Final Wages
When an Arkansas employer discharges or lays off an employee, they must pay all wages owed within seven (7) days if the employee requests or demands payment. If no request is made, wages must be paid by the next regularly scheduled payday, unless there's an agreement between the employer and employee.
Review your policy to ensure compliance with these regulations.
If you have any questions about this law, please contact EmployerESource. We’re here to assist you and ensure your practices remain compliant.
Garnishments of Pay
Employers must comply with Arkansas wage withholding laws for child support and healthcare coverage, ensuring proper deductions and fair treatment of employees. Noncompliance may result in legal consequences, fines, and court sanctions.
Employer’s may deduct a fee of $2.50 per pay period for child support garnishments and child’s health care coverage orders.
Employers should integrate these policies into payroll procedures and HR training programs to remain compliant.
Meal Periods and Breaks
Arkansas does not have specific laws regarding meal periods and breaks. While federal law does not mandate meal periods or breaks, it does require that employees be paid for any break under 20 minutes. Meal periods or breaks lasting 30 minutes or more do not require payment.
For any questions or clarification regarding this law, please contact EmployerESource. We’re here to assist you and ensure compliance with all applicable regulations.
Minimum Wage
As of 2025 Arkansas’s current minimum wage is $11.00.
Contact EmployerESource with any questions about this law.
Nursing Mother Breaks
Arkansas employers must provide adequate break time and a private space for lactating employees.
Please review your policy to ensure compliance with these regulations.
For questions or assistance, contact EmployerESource. We're here to support you in maintaining best practices and compliance.
Overtime
Under Arkansas law, employers with four (4) or more employees are required to pay overtime at a rate of one and one-half times (1½x) the regular hourly rate for any hours worked beyond 40 in a workweek, unless an employee is exempt.
In addition, federal law under the Fair Labor Standards Act (FLSA) mandates overtime pay for employees working over 40 hours in a week at the same 1½x rate. As such, all employers are obligated to compensate employees for overtime as specified.
We encourage you to review the updated policy to ensure your payroll practices remain compliant with these regulations.
For any questions or assistance in aligning your payroll system with these requirements, please don’t hesitate to reach out to EmployerESource. We're here to help.
Hours Worked
Arkansas law outlines specific requirements regarding the payment for various types of work-related time, including waiting time, on-call time, sleeping time, travel time, as well as meeting, lecture, and training time. It’s important for employers to fully understand these regulations to ensure they are compensating employees appropriately and staying in compliance with state laws.
At EmployerESource, we are committed to helping you navigate these complex laws and implement best practices in your workplace. Ensuring compliance not only avoids legal issues but also fosters a fair and supportive environment for your employees.
For any questions or assistance, please contact us. We're here to guide you and ensure your payroll practices remain compliant and efficient.
Jury Duty Leave
Arkansas employers are required to grant employees time off for jury duty service. While employers are not obligated to pay employees for this time off, they must ensure that employees are not penalized or disciplined for legally serving.
Your policy also outlines specific company guidelines regarding jury duty service.
Let EmployerESource help you ensure your policies remain aligned with legal requirements, offering protection for your company.
Vacation Leave
Employers in Arkansas are not legally required to provide vacation benefits to employees. However, if a company offers vacation, personal time off (PTO), or holiday leave, it must adhere to the policies it establishes.
This makes it essential for businesses to adopt well-crafted, clear, and compliant vacation policies.
EmployerESource specializes in developing customized vacation and leave policies tailored to your business needs. Let us help you create policies that align with your goals while ensuring compliance and clarity for your employees.
Contact us today to get started!
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