Arkansas minimum wage rules every employer should review in 2026

Arkansas minimum wage rates

The state of Arkansas’s minimum wage is $11 per hour, based on legislation passed by voters in 2018. That means your business must, in general, pay Arkansas workers more than the federal minimum wage of $7.25. The state’s minimum wage laws are not based on annual cost-of-living adjustments or inflation, as in many other states, so the rate is expected to remain in effect until further legislation passes.

 

Tipped employees at Arkansas businesses can be paid $2.63 per hour, although they must still earn at least $11 per hour with tips. This means that if one of your servers earns $7 per hour in tips plus the standard $2.63 in tipped wages, for a total of $9.63 per hour, your business would be responsible for covering the remaining $1.37 wage gap so that the employee reaches minimum wage.

When Arkansas or federal minimum wage applies

Your business must always pay the higher of the state and federal minimum wages. In this case, you must pay your employees at least $11 per hour. There are, however, a few exceptions to the rule.

 

Employer size and coverage thresholds

Businesses with four or more employees are required to pay the Arkansas minimum wage or more. Smaller employers are still subject to the federal minimum wage of $7.25 per hour as established by the Department of Labor’s Fair Labor Standards Act.

 

Employees working on federal contracts, youth workers, family members, and volunteers are not subject to state minimum wage laws.

When Arkansas or federal minimum wage applies

Your business must always pay the higher of the state and federal minimum wages. In this case, you must pay your employees at least $11 per hour. There are, however, a few exceptions to the rule.

 

Employer size and coverage thresholds

Businesses with four or more employees are required to pay the Arkansas minimum wage or more. Smaller employers are still subject to the federal minimum wage of $7.25 per hour as established by the Department of Labor’s Fair Labor Standards Act.

 

Employees working on federal contracts, youth workers, family members, and volunteers are not subject to state minimum wage laws.

 

Special wage rules employers often overlook

In addition, there are a few special circumstances that your business should not overlook:

• Students and apprentices: Full-time students and apprentices in vocational programs can be paid 85 percent of the state minimum wage, which would currently be $9.35 per hour.
• Youth workers: Youth workers under the age of 20 can be paid $4.25 per hour for their first 90 consecutive days of work, but their wages must be bumped up to $11 per hour after that period.
• Other special categories: Likewise, outside salespeople, agricultural workers, domestic care workers, and disabled workers may not be subject to the state’s minimum wage rules.

 

It makes good business sense to have a plan for accurately tracking employee categories, hours worked, and gross and net wages to comply with employment law. Automated payroll software can streamline this process, improving accuracy, efficiency, and compliance.

 

State minimum wages currently range from as low as $7.25 per hour in several states all the way up to $24 per hour for healthcare workers in California, and your business is required to pay an accurate minimum wage across state lines.

Arkansas minimum wage compliance checklist for 2026

Here is a checklist your business can use to make sure you are compliant with the latest Arkansas minimum wage regulations:

• Perform a wage review: Determine whether all nonexempt employees are paid a minimum of $11 per hour. Regular wage reviews and audits can keep your payroll in good working order. An Arkansas hourly pay calculator can also make it easy to calculate and track payroll for all of your hourly employees, and a payroll tax rates calculator can simplify that process.
• Automate as much as you can: Turn to automated payroll software to reduce manual errors and organize all of your payroll processes, including tax filings and wage reporting.
• Stay posted: Make sure your business has a poster detailing minimum wage and overtime rules in a prominent location in your business.
• Keep good records: Your business should maintain accurate and up-to-date payroll records for a minimum of three years for all team members.
• Let your employees know what’s going on: Whenever you have a change in policy or procedure, communicate this information well ahead of time.

 

You should also make it a priority to stay informed of any ongoing federal and state payroll updates. You can check with an employment attorney, your HR representative, or the Arkansas Department of Labor for more information and the latest news.