🇺🇸 ARKANSAS STATE LAW – 2026 UPDATE

Arkansas Remote Work Laws 2026

⚠️Informational only — not legal or tax advice.

Last Updated: December 2025
Applicable Period: 2026 tax year and current employment regulations
Key Characteristic: Employers with remote workers physically located in Arkansas

Arkansas remote work laws and employment regulations guide

Table of Contents

Click any item below to jump to the relevant section

Overview

Arkansas is generally considered business-friendly in its approach to employment regulation compared to some other states. According to available information from state sources, Arkansas has moderate levels of employment regulation.

General Characteristics (as of information compiled December 2025):

  • State minimum wage (2025): $11.00/hour (unchanged since 2021)
  • Paid sick leave: Not mandated by state law for private employers
  • State income tax: Progressive system with rates from 0% to 3.9%
  • Meal/rest breaks: Not mandated by state law for adult employees
  • Overtime rules: Generally follows federal FLSA standards
  • Workers’ compensation: Generally required for employers with 3 or more employees

Note: These are general starting points only. Specific applicability depends on many factors including employer size, industry, and individual circumstances. Laws and rates change periodically. Verify current information with official sources before making decisions.

Source: Arkansas Department of Labor and Licensing – https://labor.arkansas.gov/

Official State Agency Information

Arkansas Department of Labor and Licensing

The Arkansas Department of Labor and Licensing administers employment and occupational licensing laws in Arkansas, according to state law.

Contact Information:

  • Website: https://labor.arkansas.gov/
  • Phone: (501) 682-4500
  • Address: 10421 West Markham Street, Little Rock, AR 72205
  • Languages: English (primary); interpretation services may be available

Note: This agency can provide official interpretations of state law. For legal advice on how laws apply to your specific situation, consult a licensed attorney.

Arkansas Workers’ Compensation Commission (AWCC)

The Arkansas Workers’ Compensation Commission administers workers’ compensation laws in Arkansas.

Contact Information:

Arkansas Department of Finance and Administration (DFA)

The Arkansas Department of Finance and Administration administers tax laws in Arkansas.

Contact Information:

Arkansas Division of Workforce Services

The Arkansas Division of Workforce Services administers unemployment insurance and related programs.

Contact Information:

Note: For specific legal advice or official determinations regarding your business, consult licensed professionals in Arkansas.

Major State Employment Statutes

The following statutes are commonly cited in employment matters. This is general information only and does not constitute legal interpretation. Always consult official sources and legal counsel for guidance on specific situations.

1. Arkansas Minimum Wage Act

Statutory Citation: Arkansas Code § 11-4-201 et seq.
Official Source: https://labor.arkansas.gov/labor/labor-standards/minimum-wage-and-overtime/

General Provisions (as stated in statute and regulations):

According to the Arkansas Department of Labor and Licensing, the Arkansas Minimum Wage Act generally:

  • Applies to employers with 4 or more employees
  • Establishes minimum wage requirements that may exceed federal standards
  • Provides for overtime compensation standards
  • Contains provisions regarding tipped employees

Current Rate Information:

  • As of January 1, 2021 (effective date): $11.00 per hour
  • This rate was established through voter-approved Initiated Act 5 of 2018
  • The rate has remained at $11.00 through 2025

Application to Remote Work: Minimum wage provisions typically apply based on where work is physically performed. Specific applicability depends on multiple factors. Consult Arkansas Department of Labor or legal counsel for guidance on particular circumstances.

Source: Arkansas Department of Labor and Licensing – https://labor.arkansas.gov/labor/labor-standards/minimum-wage-and-overtime/

2. Arkansas Workers’ Compensation Law

Statutory Citation: Arkansas Code § 11-9-101 et seq.
Effective Date: Various amendments over time; current law reflects 2025 status
Administering Agency: Arkansas Workers’ Compensation Commission
Official Source: https://labor.arkansas.gov/workers-comp/

General Overview:

According to the Arkansas Workers’ Compensation Commission, the law generally requires employers meeting certain criteria to provide workers’ compensation insurance coverage for employees.

Coverage typically includes (based on official guidance):

  • Employers with 3 or more employees (with some exceptions)
  • Protection for work-related injuries and illnesses
  • Medical treatment and disability benefits

Exemptions may include (based on official guidance):

  • Agricultural farm laborers
  • Domestic employees
  • Real estate agents
  • Religious, charitable, and non-profit organizations (in some circumstances)
  • Casual employees
  • Federal employees (covered by federal law)

Note: Coverage determinations are complex and fact-specific. Employers uncertain about obligations should consult the Arkansas Workers’ Compensation Commission or legal counsel. Specific applicability to remote work situations requires careful analysis.

Source: Arkansas Workers’ Compensation Commission – https://labor.arkansas.gov/workers-comp/

3. Arkansas Income Tax Law

Statutory Citation: Arkansas Code § 26-51-101 et seq.
Administering Agency: Arkansas Department of Finance and Administration
Official Source: https://www.dfa.arkansas.gov/income-tax/

General Framework:

Arkansas imposes a progressive state income tax on individuals and businesses. According to the Arkansas DFA:

  • Rates range from 0% to 3.9% for individuals (2025 tax year)
  • Tax applies to Arkansas residents on all income
  • Tax applies to non-residents on Arkansas-source income only
  • Withholding obligations generally apply to Arkansas employers

Remote Work Considerations: State income tax typically applies based on where work is performed and worker residency status. These determinations are fact-specific and may involve reciprocal agreements with other states. Consult a tax professional for guidance.

Source: Arkansas Department of Finance and Administration – https://www.dfa.arkansas.gov/

4. Federal Employment Laws Applicable in Arkansas

Arkansas employers and employees are also subject to various federal laws, including:

  • Fair Labor Standards Act (FLSA): Minimum wage, overtime, child labor (enforced by U.S. Department of Labor)
  • Family and Medical Leave Act (FMLA): Unpaid leave for qualifying reasons (applies to covered employers)
  • Americans with Disabilities Act (ADA): Disability discrimination protections
  • Title VII of the Civil Rights Act: Discrimination protections
  • Age Discrimination in Employment Act (ADEA): Age-based discrimination protections

Note: Federal laws set minimum standards. When federal and state laws differ, the law providing greater protection or benefit to employees typically applies. Consult legal counsel for guidance on which laws govern specific situations.

Employee Classification Standards

⚠️ COMPLEX AREA: Employee classification has significant legal and tax implications. The information below is general background only. Employers should consult legal counsel and tax professionals before making classification decisions. Worker classification affects workers’ compensation coverage, unemployment insurance, tax withholding, and various employment law protections.

Arkansas Classification Framework

According to available information from Arkansas Division of Workforce Services and other official sources, Arkansas generally applies classification tests to determine whether a worker is an employee or independent contractor for various purposes, including:

  • Unemployment insurance
  • Workers’ compensation
  • Tax withholding obligations

The specific test applied may vary depending on the purpose (unemployment insurance vs. workers’ compensation vs. tax obligations).

Statutory Authority: Arkansas Code § 11-10-107 (unemployment insurance); Arkansas Code § 11-9-102 (workers’ compensation)
Official Sources:

General Classification Considerations

According to information compiled from Arkansas Division of Workforce Services and legal resources, Arkansas appears to use elements of the ABC Test for unemployment insurance purposes, though the specific application may vary.

Note on Variation: Different state agencies (unemployment insurance, workers’ compensation, revenue/tax) may apply different tests or variations. Federal agencies (IRS, DOL) may apply their own tests. This creates complexity where a worker might be classified differently for different purposes.

ABC Test Framework (General Background)

According to sources discussing Arkansas classification law, elements similar to the ABC Test may be considered. This is a simplified summary – actual legal application is complex and fact-specific.

The ABC Test generally examines whether a worker is an independent contractor. Under this test approach, a worker may be presumed to be an employee unless the hiring entity establishes all three of the following:

Factor A: Freedom from Control and Direction

General Description:
Based on classification principles, this factor generally examines whether the worker is free from control and direction of the hiring entity in connection with performing the work, both under any contract and in fact.

Considerations that may be relevant (based on general classification principles):

  • Whether the worker sets their own schedule
  • Whether the worker determines how to perform the work
  • Whether the worker works without direct supervision
  • Whether the worker uses their own methods and processes
  • Whether the hiring entity dictates when, where, and how work is performed

Illustrative Scenario 1 (For General Understanding Only):

A software developer works from home for an Arkansas company. The company provides detailed daily instructions on which tasks to complete, requires the developer to work specific hours (9 AM – 5 PM), mandates use of company processes and tools, and conducts weekly supervision calls to review work methods.

General Analysis: This scenario may share characteristics commonly associated with employee relationships because of the significant control exercised over when, how, and where work is performed. However, actual classification depends on all facts and circumstances including contractual terms, degree of control in practice, and other factors. This is not a determination.

Illustrative Scenario 2 (For General Understanding Only):

A graphic designer agrees to create a logo for an Arkansas business. The business describes what they want the logo to convey but does not dictate the designer’s work hours, methods, or specific design approach. The designer works from their own studio using their own equipment and software, and submits completed work for approval.

General Analysis: This scenario may share characteristics commonly associated with independent contractor relationships because of limited control over work methods and schedule. However, actual classification requires analysis of all circumstances including whether this is the designer’s regular business, financial arrangements, and other factors. This is not a determination.

⚠️ Important: These examples are purely illustrative and do not constitute legal determinations. Classification depends on the totality of circumstances and should be evaluated by legal counsel familiar with Arkansas law.

Factor B: Work Outside Usual Course of Business

General Description:
Based on classification principles, this factor generally examines whether the work performed is outside the usual course of the hiring entity’s business or is performed outside the hiring entity’s places of business.

Considerations that may be relevant (based on general classification principles):

  • Whether the work is central to the hiring entity’s business model
  • Whether the work is performed at hiring entity’s location vs. elsewhere
  • Whether the work is different in nature from the entity’s regular business activities
  • Whether the work is temporary or project-based vs. ongoing

Illustrative Scenario 1 (For General Understanding Only):

A retail company in Arkansas hires a remote bookkeeper to handle monthly accounting. The bookkeeper works from their home office, uses their own accounting software, and serves multiple other clients. The work involves standard bookkeeping tasks.

General Analysis: This scenario may involve mixed factors. The work is performed off-site (favoring contractor status), but bookkeeping may be considered part of normal business operations for most businesses (potentially favoring employee status). Classification would depend on complete analysis of all factors. This is not a determination.

Illustrative Scenario 2 (For General Understanding Only):

An Arkansas manufacturing company hires a plumber to repair a leak in the office bathroom. The plumber comes once to fix the specific problem, uses their own tools, and provides their own expertise.

General Analysis: This scenario may share characteristics commonly associated with independent contractor relationships because plumbing is outside the usual course of a manufacturing business and the work is temporary and project-specific. However, actual classification requires comprehensive analysis. This is not a determination.

⚠️ Important: Actual application of this factor is highly fact-specific and may vary by agency and purpose. These examples are for general educational purposes only.

Factor C: Independently Established Trade or Business

General Description:
Based on classification principles, this factor generally examines whether the worker is customarily engaged in an independently established trade, occupation, profession, or business of the same nature as that involved in the work performed.

Considerations that may be relevant (based on general classification principles):

  • Whether the worker offers services to the public generally
  • Whether the worker has multiple clients
  • Whether the worker advertises or markets their services
  • Whether the worker has their own business identity (business name, license, etc.)
  • Whether the worker makes investments in their business
  • Whether the worker bears risk of loss or opportunity for profit beyond compensation

Illustrative Scenario 1 (For General Understanding Only):

A marketing consultant has been working remotely for an Arkansas company for two years. The company is the consultant’s only client. The consultant does not advertise services, has no business website, and has made no investments in marketing equipment beyond a laptop.

General Analysis: This scenario may share characteristics commonly associated with employee relationships because the consultant appears dependent on a single client and lacks evidence of an independent business. However, other factors (contract terms, nature of services, control level) would also be relevant. This is not a determination.

Illustrative Scenario 2 (For General Understanding Only):

A web developer maintains a professional website advertising their services, works with 15 different clients including an Arkansas company, has registered a business name, carries business liability insurance, and has invested in professional development tools and software.

General Analysis: This scenario may share characteristics commonly associated with independent contractor relationships because of evidence of an independent business serving multiple clients. However, actual classification depends on all factors including the nature of the relationship with each client. This is not a determination.

⚠️ Important: No single factor is determinative. Classification requires weighing all relevant factors. These examples do not constitute legal advice or classification determinations.

Remote Work Classification Considerations

For remote workers, classification analysis may involve additional complexities:

  • Physical work location vs. business location: Where the worker performs work geographically may affect jurisdictional issues but typically does not change the fundamental employee vs. contractor analysis
  • Nature of work relationship in virtual environment: The degree of control and independence may be analyzed differently when work is performed remotely
  • Documentation and monitoring challenges: The difficulty of observing work performance remotely may affect how control is assessed
  • Equipment and tools: Whether remote workers use their own computers, software, and home office space may be relevant factors

Note: These considerations do not create separate legal tests but may affect how existing tests are applied. Remote work arrangements should be carefully reviewed with legal counsel familiar with Arkansas law and the specific circumstances.

Potential Consequences of Misclassification

According to Arkansas Division of Workforce Services and Workers’ Compensation Commission guidance, misclassification may result in various consequences. The following is general information only – actual consequences depend on many factors.

For Employers (potential consequences may include):

  • Back payment of unemployment insurance taxes and penalties
  • Workers’ compensation premium adjustments and potential fines
  • Wage and hour claim exposure (unpaid overtime, minimum wage violations)
  • Tax withholding liability and penalties (state and federal)
  • Liability for employment-related benefits and protections
  • Interest and penalties on unpaid amounts
  • Potential criminal penalties in some circumstances

For Workers (potential consequences may include):

  • Lack of access to unemployment benefits
  • Lack of workers’ compensation coverage
  • Lack of wage and hour protections (minimum wage, overtime)
  • Lack of leave benefit eligibility under various laws
  • Tax filing complications
  • Lack of access to employer-provided benefits

Note: The specific consequences depend on many factors including the jurisdiction (state vs. federal), the agency involved, the severity and duration of misclassification, and whether misclassification was intentional or inadvertent. This is general information only.

Source on Consequences: Arkansas Division of Workforce Services and Arkansas Workers’ Compensation Commission guidance

How to Seek Guidance on Classification

Classification questions should be addressed through:

⚠️ CRITICAL REMINDER: Worker classification is a legal determination that should be made with professional guidance. The information above is for general educational purposes and does not constitute a classification analysis or legal advice. Different agencies may apply different tests, and a worker might be classified differently for different purposes. Misclassification can result in significant financial liability and legal consequences. Consult legal counsel, tax professionals, and relevant state agencies before making classification decisions.

 

Minimum Wage Requirements in Arkansas

⚠️ Note: Minimum wage rates and requirements change periodically through legislation or ballot initiatives. Verify current rates with official sources before making decisions. This information was compiled December 2025 and may not reflect recent changes.

Current Rate Information (As Published by Arkansas Department of Labor)

According to the Arkansas Department of Labor and Licensing, the state minimum wage as of January 1, 2021 (most recent effective date) is generally:

Effective Date Rate Source
January 1, 2021 $11.00/hour Initiated Act 5 of 2018 (voter-approved)
2022–2025 $11.00/hour Rate unchanged since 2021
2026 $11.00/hour* *No announced increase as of December 2025

Background: The current rate was established through Initiated Act 5 of 2018, a voter-approved ballot measure that gradually increased Arkansas’ minimum wage from $8.50 (2018) to $11.00 (2021). The rate has remained at $11.00 since January 1, 2021.

Future Changes: Arkansas does not currently have automatic inflation adjustments to its minimum wage. Any future increases would likely require legislative action or another voter initiative. As of December 2025, no confirmed increases have been announced for 2026 or beyond.

Source: Arkansas Department of Labor and Licensing – https://labor.arkansas.gov/labor/labor-standards/minimum-wage-and-overtime/

Comparison with Federal Minimum Wage

The federal minimum wage under the Fair Labor Standards Act (FLSA) is $7.25/hour (unchanged since 2009).

Which Rate Applies: When federal and state minimum wage rates differ, employers generally are required to pay the higher of the two rates. In Arkansas, this means most employers subject to both federal and state law would generally be expected to pay $11.00/hour.

Coverage Considerations:

  • Arkansas Minimum Wage Act: Generally applies to employers with 4 or more employees
  • Federal FLSA: Applies to employers with annual gross sales of $500,000+ or engaged in interstate commerce

Note: Employers covered by both laws typically must comply with the law providing the greatest benefit to employees. Specific applicability depends on individual circumstances. Consult Arkansas Department of Labor or legal counsel for guidance.

Application to Remote Workers

According to general legal principles and Arkansas Department of Labor guidance:

  • Minimum wage typically applies based on where work is physically performed, not where the employer is located
  • A worker performing work from a location in Arkansas would generally be subject to Arkansas minimum wage requirements
  • A worker performing work from another state would generally be subject to that state’s minimum wage requirements
  • Employer location alone is generally not the determining factor

Example for Illustration Only:

  • Arkansas company employs remote worker who performs all work from home in Tennessee → Tennessee minimum wage may apply
  • Tennessee company employs remote worker who performs all work from home in Arkansas → Arkansas minimum wage may apply

Note: These are general principles only. Actual application can be complex, especially for workers who travel or work in multiple states. Multi-state employment situations may require analysis of various states’ laws. Consult legal counsel for guidance on specific circumstances.

Tipped Employees

According to Arkansas law, employers may apply a tip credit for tipped employees.

General Framework (as stated in Arkansas regulations):

  • Base wage for tipped employees: $2.63/hour (as of 2025)
  • Tip credit: Up to $8.37/hour (difference between $11.00 and $2.63)
  • Total compensation requirement: Tips plus base wage must equal at least $11.00/hour
  • Employer obligation: If tips are insufficient to bring total compensation to $11.00/hour, employer generally must make up the difference

Definition of Tipped Employee: According to federal and state guidance, a tipped employee typically is defined as one who customarily and regularly receives more than $30 per month in tips.

Recordkeeping: The Arkansas Department of Labor indicates it is the employer’s responsibility to keep accurate tip records.

Note: Tip credit rules are complex and fact-specific. Improper application can result in minimum wage violations. Employers should consult Arkansas Department of Labor guidance and legal counsel.

Source: Arkansas Department of Labor and Licensing – https://labor.arkansas.gov/labor/labor-standards/minimum-wage-and-overtime/

Exemptions and Special Provisions

According to Arkansas Minimum Wage Act and regulations, certain exemptions or special provisions may apply in some circumstances:

Student Workers: Full-time students at accredited institutions may potentially be paid 85% of the minimum wage under certain conditions, according to Arkansas law. Specific requirements and limitations apply. Verify with Arkansas Department of Labor.

Youth/Training Wages: Federal law allows certain training wages for workers under 20 during their first 90 consecutive calendar days of employment. Check current federal and state provisions.

Agricultural Workers: Some agricultural workers may be exempt from minimum wage requirements under certain conditions. Specific criteria apply.

Note: Exemptions are narrowly construed and fact-specific. Do not assume an exemption applies without verification from official sources and legal counsel. Misapplication of exemptions can result in wage violations and liability.

Enforcement and Violations

According to Arkansas law, employers who fail to pay required minimum wages may face various consequences, which may include:

  • Back payment of unpaid wages
  • Penalties and fines
  • Legal action by affected employees
  • Department of Labor enforcement actions

To File a Complaint: Workers who believe they are not being paid minimum wage properly can file a complaint with:

⚠️ CRITICAL REMINDER: Minimum wage compliance depends on many factors including employer size, employee type, work location, industry, and applicable exemptions. This information is general background only. Consult Arkansas Department of Labor and legal counsel for specific compliance obligations.

Overtime and Break Requirements

⚠️ Note: Wage and hour compliance is complex and fact-specific. This section provides general background information only. Employers should consult with legal counsel to ensure compliance with all applicable laws.

A. Overtime Standards in Arkansas

Governing Framework:

Arkansas generally follows the federal Fair Labor Standards Act (FLSA) for overtime requirements. According to Arkansas Department of Labor:

  • Primary Standard: Federal FLSA overtime provisions generally apply
  • State Law: Arkansas Minimum Wage Act incorporates federal overtime standards
  • Statutory Authority: Arkansas Code § 11-4-211; 29 U.S.C. § 207 (FLSA)

Official Sources:

General Overtime Threshold (as stated in law and regulations)

According to federal FLSA and Arkansas incorporation of these standards:

  • Trigger: Typically after 40 hours of actual work in a workweek
  • Rate: Generally 1.5 times the employee’s regular rate of pay
  • Workweek: Seven consecutive 24-hour periods (168 hours)

⚠️ Daily Overtime: Arkansas does NOT generally require overtime for work beyond a certain number of hours in a single day (unlike some states such as California). Overtime typically is calculated on a weekly basis only.

What Counts as “Hours Worked”: According to Department of Labor guidance, compensable time may include:

  • Time actually performing work duties
  • Required meetings and training
  • Time waiting to perform work (in some circumstances)
  • Other activities depending on specific facts and “suffer or permit” standard

What Typically Does NOT Count:

  • Vacation time, holidays, sick leave (unless actually worked)
  • Meal periods where employee is completely relieved of duties

Note: Determining what constitutes compensable time is fact-specific and can be complex, especially for remote workers. Consult wage-hour counsel for guidance.

Application to Remote Workers

Overtime regulations typically apply based on the nature of the work and employment relationship, not work location. Remote workers performing non-exempt work would generally be subject to the same overtime requirements as on-site workers.

Potential Challenges for Remote Work:

Determining compensable time for remote workers can involve additional considerations:

  • After-hours email/communication: Whether responding to emails or messages outside regular hours constitutes compensable work time
  • On-call time at home: Whether time spent “on call” while at home is compensable
  • Virtual meetings outside regular hours: Whether attendance at meetings after hours counts toward overtime
  • “Volunteer” work beyond scheduled hours: Whether employee-initiated work beyond scheduled time must be compensated
  • Tracking and documentation: Difficulty of accurately tracking hours worked remotely

General Principles: According to Department of Labor guidance, work is generally compensable if it is “suffered or permitted” by the employer, even if not requested. However, employers are not required to compensate for work they neither knew about nor should have known about through reasonable diligence.

Best Practice Considerations (Not Legal Requirements):

  • Clear policies about work hours and after-hours communication expectations
  • Systems for accurately tracking remote worker hours
  • Procedures for authorizing or prohibiting overtime work
  • Training for supervisors on overtime requirements for remote workers

Note: These determinations are highly fact-specific. Employers should consult wage-hour legal counsel for guidance on policies and practices for remote workers.

Overtime Exemptions

Federal FLSA and Arkansas law recognize certain exemptions from overtime requirements. Common exemptions include:

Executive, Administrative, and Professional (EAP) Exemptions

To potentially qualify for these “white collar” exemptions, employees generally must meet ALL of the following tests:

1. Salary Basis Test Employee must be paid a predetermined salary not subject to reduction based on quality or quantity of work performed.

2. Salary Level Test Employee must meet minimum salary threshold:

  • Federal threshold (2025): $844/week ($43,888/year) for most EAP exemptions, increasing to $1,128/week ($58,656/year) effective January 1, 2025
  • Arkansas: Generally follows federal salary threshold
  • Note: Salary thresholds are subject to change. Verify current amounts with Department of Labor

3. Duties Test Employee must perform exempt-level duties. The Arkansas Department of Labor generally describes exempt duties as involving:

Executive:

  • Primary duty is management of enterprise or recognized department/subdivision
  • Customarily and regularly directs work of two or more employees
  • Has authority to hire/fire or recommendations given particular weight

Administrative:

  • Primary duty is office or non-manual work directly related to management or general business operations
  • Includes exercise of discretion and independent judgment on significant matters

Professional:

  • Primary duty requires advanced knowledge in field of science or learning
  • Advanced knowledge customarily acquired through prolonged specialized instruction

Note: These are simplified summaries. Actual duties test is detailed and fact-specific. Consult Department of Labor guidance and legal counsel.

Sources:

Computer Employee Exemption

For certain computer professionals, special exemption criteria may apply:

  • May be paid salary OR hourly
  • Hourly rate threshold (2025): $27.63/hour or more (federal)
  • Salary threshold: Same as other EAP exemptions
  • Must meet specific duties test related to computer systems analysis, programming, software engineering, or similar work
  • Creating content is NOT qualifying work

Source: 29 C.F.R. § 541.400

Other Exemptions

Arkansas and federal law recognize various other exemptions, which may include:

  • Outside sales employees
  • Certain commissioned employees
  • Highly compensated employees (meeting specific thresholds)
  • Specific industry exemptions (agricultural, seasonal recreation, etc.)

Note: Exemptions are narrowly interpreted. Classification errors can result in significant liability for unpaid overtime, penalties, and attorneys’ fees. Professional guidance strongly recommended.

Important Exemption Clarifications

⚠️ Job Title Does NOT Determine Exemption
Calling someone a “manager” or “administrator” does not create an exemption. The actual duties performed and compensation structure determine exemption status.

⚠️ Salary Threshold Alone is Insufficient
Paying above the salary threshold does not automatically create an exemption. The employee must also be paid on a salary basis AND perform exempt duties.

⚠️ All Three Tests Must Be Met
For EAP exemptions, failing any one test (salary basis, salary level, OR duties) means the exemption does not apply.

B. Meal and Rest Break Requirements

Arkansas Law on Breaks:

According to the Arkansas Department of Labor and Licensing, Arkansas does NOT have laws requiring employers to provide meal or rest breaks for adult employees in private employment.

What This Generally Means:

  • Private employers are generally not required by Arkansas law to provide breaks
  • If employers choose to provide breaks voluntarily, certain federal rules may apply (see below)
  • State employees may have different break entitlements under state personnel policies
  • Minors (under 16) in entertainment industry have specific rest break requirements

Source: Arkansas Department of Labor FAQs – https://labor.arkansas.gov/resources/faqs/

Federal Break Standards (If Employer Provides Breaks Voluntarily)

If an employer chooses to provide breaks, the federal Fair Labor Standards Act (FLSA) provides:

Short Rest Breaks (5-20 minutes):

  • Generally must be counted as compensable work time
  • Must be included in overtime calculations
  • Employees must be paid for these breaks

Bona Fide Meal Periods (typically 30+ minutes):

  • May be unpaid IF:
    • Employee is completely relieved of all duties
    • Employee is free to leave the work area
    • Period is uninterrupted for work purposes
  • If employee performs ANY work during meal period, entire period generally must be paid

Source: U.S. Department of Labor – https://www.dol.gov/agencies/whd/flsa

Application to Remote Workers

Break provisions (where they exist) generally apply to remote workers performing non-exempt work.

Potential Challenges for Remote Work:

  • Verifying breaks are taken: Difficulty in confirming remote workers actually take scheduled breaks
  • Ensuring meal periods are duty-free: Risk that remote workers check emails or perform work during unpaid meal periods
  • Documenting compliance: Need for systems to track break compliance for remote workers
  • Handling interruptions: What happens if remote worker is contacted during break?

Considerations for Employers (Not Legal Requirements, General Recommendations):

Employers may wish to consider:

  • Clear written policies about breaks for remote workers
  • Time-tracking systems that allow recording of breaks
  • Training on requirements for duty-free meal periods
  • Procedures for handling work-related interruptions during breaks
  • Documentation systems for compliance purposes

Note: Even though Arkansas doesn’t require breaks, employers who voluntarily provide them should understand federal rules about compensability. Consult legal counsel for policy development.

Resources for Wage and Hour Questions

For specific questions about overtime, breaks, and wage-hour compliance:

⚠️ CRITICAL REMINDER: Wage and hour compliance is highly fact-specific and technical. Violations can result in significant back pay liability, penalties, and legal fees. This information is for general background only. Employers should obtain professional guidance on exemption classification, time tracking, and break compliance, especially for remote workers.

Paid Sick Leave in Arkansas

No State-Mandated Paid Sick Leave for Private Employers

According to available information from Arkansas sources, Arkansas does NOT currently have a state law requiring private employers to provide paid sick leave to employees.

What This Generally Means:

  • Private employers are generally not required by Arkansas state law to provide paid sick leave
  • Employers may choose to provide paid sick leave voluntarily as a benefit
  • If employers establish a sick leave policy, they typically must follow the terms of that policy
  • Federal protections may provide certain unpaid leave rights (see below)

Source: Arkansas Department of Labor information and state statutes

Federal Protections: Family and Medical Leave Act (FMLA)

While Arkansas does not require paid sick leave, eligible employees may have rights to unpaid, job-protected leave under the federal Family and Medical Leave Act (FMLA).

General FMLA Framework:

Employer Coverage:

  • Generally applies to employers with 50 or more employees within 75 miles

Employee Eligibility:

  • Worked for employer for at least 12 months
  • Worked at least 1,250 hours in previous 12 months
  • Works at location with 50+ employees within 75 miles

Leave Entitlement:

  • Up to 12 weeks of unpaid, job-protected leave per 12-month period

Qualifying Reasons:

  • Employee’s own serious health condition
  • Care for family member with serious health condition
  • Birth, adoption, or foster placement of child
  • Qualifying military family leave

Note: FMLA provides unpaid leave, not paid sick leave. This is general information only. For FMLA questions, consult:

Source: U.S. Department of Labor – https://www.dol.gov/agencies/whd/fmla

State Employee Benefits

Note: State employees in Arkansas may have paid sick leave benefits under state personnel policies. According to Arkansas Code § 21-4-207, permanent or probationary state employees generally accrue sick leave at the rate of one day per month of service.

This applies ONLY to state employees, not private sector workers.

If Employers Voluntarily Provide Sick Leave

If an Arkansas employer chooses to offer paid sick leave (not required), considerations include:

  • Written policy recommended: Clear documentation of accrual, usage, and payout terms
  • Consistency: Policy should be applied consistently to avoid discrimination claims
  • Contractual nature: Once established, sick leave policy may create contractual obligations
  • Payout on termination: Arkansas generally does not require payout of unused sick leave on termination unless employer policy specifically provides for it

Note: These are general considerations, not legal requirements. Employers who choose to offer sick leave should consult legal counsel for policy development.

Interaction with Other Leave Laws

Even without paid sick leave requirements, Arkansas employers may have obligations under:

  • Americans with Disabilities Act (ADA): May require reasonable accommodation including unpaid leave
  • Workers’ Compensation: Covers work-related injuries/illnesses
  • FMLA: Unpaid leave for qualifying medical and family reasons
  • State and federal discrimination laws: Cannot discriminate based on protected characteristics in leave decisions

Note: These laws have different requirements and protections. Consult legal counsel for comprehensive leave policy guidance.

Application to Remote Workers

Where sick leave benefits are voluntarily provided, they typically would apply to remote workers on the same basis as on-site workers, unless the employer’s policy specifically differentiates.

No special Arkansas law provisions for remote worker sick leave have been identified as of December 2025.

Workers' Compensation Overview for Arkansas

⚠️ HIGHLY FACT-SPECIFIC AREA: Workers’ compensation coverage and claims involve complex factual and legal determinations. This section provides general background information only. For specific situations, consult the Arkansas Workers’ Compensation Commission and legal counsel.

Legal Framework

Statutory Authority: Arkansas Code § 11-9-101 et seq.

Administering Agency: Arkansas Workers’ Compensation Commission (AWCC)

Contact Information:

General Coverage Requirements (As Stated in Arkansas Law)

According to Arkansas statutes and Workers’ Compensation Commission guidance, workers’ compensation coverage is generally:

  • Required for: Most employers with 3 or more employees
  • Threshold: Three or more employees (with specific exceptions)
  • Type of coverage: Workers’ compensation insurance policy OR approved self-insurance

Source: Arkansas Code § 11-9-102; Arkansas Workers’ Compensation Commission – https://labor.arkansas.gov/workers-comp/awcc-about-us/basic-facts/

Important Coverage Notes

The “Three or More” Rule: According to AWCC guidance, most employers with three or more employees are generally required to carry workers’ compensation insurance. However, exceptions to the three-or-more requirement exist, so employers with fewer than three should verify requirements with authorities before assuming they are not covered.

Special Industry Rules:

  • Construction/building work: Employers may be required to carry coverage with two or more employees (not three)
  • High-risk industries: May have different thresholds

Note: Coverage determinations can be complex. Employers uncertain about their obligations should consult Arkansas Workers’ Compensation Commission at (501) 682-3930 or legal counsel.

Exemptions from Coverage Requirement

According to Arkansas law and AWCC guidance, exemptions from mandatory coverage may include:

  • Agricultural farm laborers
  • Domestic help/domestic employees
  • Real estate agents
  • Religious, charitable, or relief organization employees
  • Casual employees
  • Federal government employees (covered by federal systems)
  • Railroad and maritime employees (covered by federal law)
  • Certain corporate officers (under specific conditions)

⚠️ Important: Exemptions are specific and fact-dependent. Do not assume an exemption applies without verification from AWCC or legal counsel. Some exemptions are conditional or require specific steps to claim.

Source: Arkansas Code § 11-9-102; AWCC guidance

Arkansas Workers’ Compensation System

According to AWCC information, Arkansas operates a competitive workers’ compensation insurance system:

Insurance Options:

  • Private insurance carriers: Most employers purchase coverage from licensed private insurers
  • Self-insurance: Employers meeting specific criteria may be approved to self-insure (requires AWCC approval and meeting financial standards)
  • Group self-insurance: May be available for qualifying employer groups

Important Notes:

  • Employer pays for coverage (no cost may be passed to employees or deducted from pay)
  • Proof of coverage (Certificate of Insurance) must be displayed at workplace
  • Form P (workers’ comp notice) must be posted in workplace

Source: Arkansas Workers’ Compensation Commission – https://labor.arkansas.gov/workers-comp/

What Workers’ Compensation May Cover

According to Arkansas workers’ compensation statutes, benefits may include:

Medical Benefits:

  • Reasonably necessary medical treatment for work-related injury or illness
  • Emergency room visits, prescriptions, surgeries
  • Rehabilitation services
  • Choice of physician generally controlled by employer/insurer

Disability Benefits:

  • Temporary total disability
  • Temporary partial disability
  • Permanent partial disability
  • Permanent total disability
  • Death benefits for surviving dependents

Other Benefits:

  • Mileage reimbursement for medical travel (in many cases)
  • Vocational rehabilitation (in some cases)

Note: Benefit amounts and eligibility are determined by statutory formulas and specific circumstances. This is general information only.

Source: Arkansas Code § 11-9-501 et seq.

Remote Worker Coverage Considerations

⚠️ COMPLEX AND FACT-SPECIFIC: Coverage of home office injuries involves detailed factual analysis. The following is general background only.

General Legal Standard:

Workers’ compensation in Arkansas typically covers injuries that meet the statutory definition, which generally requires the injury to:

  • Arise out of and in the course of employment
  • Be caused by specific incident identifiable by time and place of occurrence (with certain exceptions)

According to Arkansas law, three exceptions exist to the specific incident requirement:

  1. Rapid repetitive motion injuries (including carpal tunnel)
  2. Gradual onset back injuries
  3. Hearing loss

For these three injury types, the condition must be the “major cause” of need for treatment/disability.

Source: Arkansas Code § 11-9-102; Arkansas Workers’ Compensation Q&A brochure

Factors That May Be Relevant to Coverage Determination

According to general workers’ compensation principles and Arkansas case law, factors that may be considered in determining whether a home office injury is compensable include:

  • Whether employee was engaged in employment activity at time of injury
  • Whether injury occurred in designated work area
  • Whether injury occurred during work hours
  • Whether activity was authorized or expected by employer
  • Whether activity benefited employer
  • Whether employer exercised control over home work environment

⚠️ Important: This list is not exhaustive and no single factor is determinative. Every case is unique.

Illustrative Scenarios (For General Understanding Only)

The following scenarios are provided for general educational purposes only. They do NOT constitute coverage determinations or legal advice. Actual coverage depends on complete factual circumstances and official determination by Arkansas Workers’ Compensation Commission.

Scenario Category: Work-Related Activities in Home Office

Example Situation 1: Employee trips over computer cables in designated home office while walking to retrieve work documents during scheduled work hours.

General Observations: This type of scenario may share some characteristics with situations that have been considered potentially compensable in workers’ compensation contexts, such as:

  • Activity was directly work-related (retrieving work documents)
  • Occurred in what may be considered work area (home office)
  • Occurred during work hours
  • Involved work equipment

However, compensability would depend on complete factual analysis including:

  • Whether home office was designated and authorized work area
  • Whether employer provided or approved office setup
  • Whether employer exercised any control over home office conditions
  • Nature and extent of work-at-home arrangement
  • Other specific circumstances

This is NOT a coverage determination. Actual determination would be made by Arkansas Workers’ Compensation Commission based on all facts and applicable law.

Example Situation 2: Employee develops carpal tunnel syndrome diagnosed by physician after six months of intensive keyboard work performing job duties.

General Observations: Arkansas law specifically provides for rapid repetitive motion injuries including carpal tunnel syndrome. However, for this type of injury, the statute requires the condition be the “major cause” of the need for treatment/disability.

Compensability would depend on factors such as:

  • Medical documentation of condition and work-relatedness
  • Whether work activities were the major cause (not just a cause) of condition
  • Nature and extent of repetitive work activities
  • Other potential causes or contributing factors
  • Medical evidence linking condition to employment

Consult medical professionals for diagnosis and AWCC or workers’ compensation attorney for coverage questions. This is NOT a coverage determination.

Scenario Category: Personal Activities at Home

Example Situation: Employee injured while preparing personal lunch in kitchen during lunch break.

General Observations: Personal comfort activities unrelated to work duties may be less likely to be considered work-related based on general workers’ compensation principles. However, specific facts always matter, including:

  • Whether employee was completely relieved of work duties
  • Whether kitchen is part of designated work area
  • Whether employer exercised any control over lunch breaks
  • Whether activity had any connection to employment
  • Other circumstances

This is NOT a coverage determination. Each case is unique and depends on complete factual analysis by AWCC.

Example Situation: Employee injured while exercising in home gym before starting work day.

General Observations: Activities performed before work hours that are purely personal generally would not be considered to arise out of employment based on general principles. However, specific facts could affect analysis:

  • Whether exercise was required, encouraged, or authorized by employer
  • Whether injury occurred while transitioning to work
  • Any employer involvement in the activity
  • Other circumstances

This is NOT a coverage determination.

⚠️ CRITICAL DISCLAIMER FOR ALL SCENARIOS: The scenarios above are purely illustrative examples for general educational purposes. They do NOT constitute:

  • Legal advice or coverage determinations
  • Predictions of how claims would be decided
  • Exhaustive analysis of relevant factors
  • Guarantees of coverage or non-coverage
  • Recommendations for filing or not filing claims

Every workers’ compensation claim is unique and depends on its specific facts. Coverage determinations are made by the Arkansas Workers’ Compensation Commission based on complete information and applicable law. These examples should NOT be relied upon for any coverage decision.

Reporting and Claim Process (General Framework)

According to Arkansas Workers’ Compensation Commission guidance, the general process typically involves:

For Employees:

  1. Report injury to employer: Immediately or as soon as possible (important for protecting rights)
  2. Seek medical attention: Generally from physician chosen by employer/insurer (emergency care excepted)
  3. Complete Form N: Employee notice of injury form
  4. Cooperate with process: Attend medical appointments, follow treatment, report earnings if applicable

For Employers:

  1. Report to workers’ comp carrier: Generally immediately upon learning of injury
  2. Complete Form 1: First Report of Injury or Illness
  3. Deadline: As specified in regulations (prompt reporting is critical)
  4. Post required notices: Form P (workers’ comp notice) must be posted at workplace

⚠️ Note: Deadlines are strictly enforced. Late reporting by either party may affect claim. When in doubt, report promptly and seek guidance.

Source: Arkansas Workers’ Compensation Commission – https://labor.arkansas.gov/workers-comp/

Choice of Physician

According to Arkansas law, the employer or its workers’ compensation insurance carrier generally has the right to choose the physician who will treat the employee for a work-related injury.

General Framework:

  • Initial choice typically belongs to employer/insurer
  • Employee may have one-time right to request change of physician under certain circumstances
  • Emergency care is exception (employee can seek emergency treatment anywhere)

Note: Medical treatment rules can be complex. Consult AWCC guidance or legal counsel for specific situations.

Penalties for Non-Compliance

According to Arkansas law, employers who fail to secure required workers’ compensation coverage may face:

  • Fines up to $10,000
  • Potential criminal charges (Class D felony)
  • Personal liability for benefits owed to injured workers
  • Loss of protections normally afforded by workers’ compensation system
  • Additional penalties and enforcement actions

Note: These are potential consequences. Actual penalties depend on specific circumstances.

Source: Arkansas Code § 11-9-402

Best Practices for Remote Work (General Recommendations Only)

The following are general recommendations compiled from various sources for consideration. They do NOT constitute legal requirements and may not be suitable for all situations. Consult legal counsel and safety professionals.

For Employers – Considerations:

  • Consider providing guidance on ergonomic home office setup
  • Consider documenting remote work locations and arrangements
  • Consider developing clear injury reporting procedures for remote workers
  • Consider safety training specific to home office environments
  • Consider clear policies on work hours and expected duties

For Employees – Considerations:

  • Consider setting up dedicated work area if possible
  • Consider documenting work space and setup
  • Consider reporting injuries promptly to employer
  • Consider maintaining clear boundaries between work and personal time
  • Consider following employer safety guidelines

Note: These are suggestions for consideration, not legal obligations. Individual circumstances vary.

Resources and Contacts

Arkansas Workers’ Compensation Commission:

For Legal Representation:

For Insurance Questions:

  • Your employer’s insurance carrier
  • AWCC Operations/Compliance Division

⚠️ FINAL CRITICAL REMINDER: Workers’ compensation is a highly specialized area involving complex medical, legal, and factual determinations. Coverage questions should be directed to:

  1. Arkansas Workers’ Compensation Commission for official determinations
  2. Licensed workers’ compensation attorney for legal advice
  3. Medical professionals for injury evaluation and treatment

This section is for general background information only and should NOT be relied upon for coverage determinations, legal decisions, or medical advice. Every injury and claim is unique and requires individual evaluation by appropriate professionals.

Other Leave Entitlements

Family and Medical Leave Act (FMLA) – Federal

The federal Family and Medical Leave Act (FMLA) provides eligible employees with unpaid, job-protected leave for qualifying reasons.

General Framework:

Covered Employers:

  • Private employers with 50 or more employees for each working day during each of 20 or more calendar workweeks in current or preceding calendar year
  • All public agencies (federal, state, local government) regardless of number of employees
  • Public and private elementary and secondary schools regardless of number of employees

Eligible Employees:

  • Worked for covered employer for at least 12 months (need not be consecutive)
  • Worked at least 1,250 hours during 12-month period immediately before leave
  • Works at location where employer has at least 50 employees within 75 miles

Leave Entitlement:

  • Up to 12 workweeks of unpaid leave in 12-month period for:
    • Birth and care of newborn child
    • Placement of child for adoption or foster care
    • Care for spouse, child, or parent with serious health condition
    • Employee’s own serious health condition preventing work performance
    • Qualifying exigency arising from military service of spouse, child, or parent
  • Up to 26 workweeks in single 12-month period to care for covered servicemember with serious injury or illness (military caregiver leave)

Job Protection: Generally, employee is entitled to return to same or equivalent position with equivalent benefits, pay, and terms/conditions of employment.

Note: This is simplified overview of complex federal law. For detailed guidance:

  • U.S. Department of Labor, Wage and Hour Division: (501) 223-9114 (Little Rock office)
  • National: 1-866-4-USWAGE
  • Website: https://www.dol.gov/agencies/whd/fmla
  • Consult employment attorney for specific situations

Application to Remote Workers: FMLA generally applies to eligible remote workers on same basis as on-site workers, provided they meet eligibility criteria.

Source: 29 U.S.C. § 2601 et seq.; U.S. Department of Labor – https://www.dol.gov/agencies/whd/fmla

Military Leave

Federal Protections:

The Uniformed Services Employment and Reemployment Rights Act (USERRA) provides protections for employees who serve in uniformed services.

General Framework:

  • Job protection for military service members
  • Right to reemployment after qualifying military service
  • Protection from discrimination based on military service
  • Applies to most employers regardless of size

Note: This is federal law. Consult military employment counsel or U.S. Department of Labor for specific situations.

Arkansas State Provisions:

Arkansas law may provide additional protections for state employees and others. Specific provisions should be verified with Arkansas Department of Labor or legal counsel.

Source: 38 U.S.C. § 4301 et seq.; Arkansas Code provisions

Jury Duty Leave

Arkansas Law:

According to Arkansas Code § 16-31-106, employees summoned for jury duty generally have certain protections.

General Provisions (as stated in law):

  • Employee cannot be discharged, threatened, or coerced due to jury service
  • Employee cannot lose sick leave, vacation time, or suffer other penalty due to jury service
  • Must give reasonable notice to employer of summons
  • Applies to employees summoned or serving as jurors

Compensation: Arkansas law does not generally require private employers to pay employees for time spent on jury duty (though employers may choose to do so). Jurors receive compensation from the court system.

Note: This is general information. Consult Arkansas Department of Labor or employment counsel for specific situations.

Source: Arkansas Code § 16-31-106

Voting Leave

Arkansas Law:

According to Arkansas Code § 7-1-102, employers are generally required to allow employees time off to vote under certain circumstances.

General Framework (as stated in statute):

  • If employee’s work schedule does not provide sufficient time to vote outside working hours
  • Applies on days of election
  • Specific provisions and conditions in statute

Note: Specific requirements should be verified with current statute. This is general information only.

Source: Arkansas Code § 7-1-102

Domestic Violence Leave

Arkansas does not appear to have a comprehensive state law mandating specific domestic violence leave for private sector employees as of December 2025.

Available Protections:

  • Federal FMLA may cover serious health conditions resulting from domestic violence
  • Employees may have rights under other leave policies
  • Some protections may exist under discrimination laws

Note: This area of law can be complex. Consult employment attorney for specific situations involving domestic violence-related leave.

Pregnancy and Parental Leave

Federal Protections:

Pregnancy Discrimination Act (PDA):

  • Prohibits discrimination based on pregnancy, childbirth, or related conditions
  • Requires treating pregnant employees same as other employees similar in ability/inability to work
  • May require reasonable accommodations in some circumstances

Family and Medical Leave Act (FMLA):

  • Eligible employees may take up to 12 weeks unpaid leave for birth and care of newborn
  • Leave may also be available for serious health conditions related to pregnancy
  • Must meet FMLA eligibility requirements

Americans with Disabilities Act (ADA):

  • Pregnancy itself is not a disability, but pregnancy-related complications may be
  • May require reasonable accommodations for pregnancy-related disabilities

Arkansas State Law:

Arkansas does not appear to have a comprehensive paid parental leave law for private sector employees as of December 2025.

State Employee Benefits:

  • Arkansas offers Paid Maternity Leave Program for eligible state employees (Act 770 of 2023)
  • Up to 12 consecutive weeks of paid leave for state employees meeting eligibility requirements
  • This applies ONLY to state employees, not private sector

Note: This is general information. For specific pregnancy/parental leave questions, consult:

  • U.S. Equal Employment Opportunity Commission: (501) 324-5060 (Little Rock office)
  • Employment attorney
  • HR professional

Application to Remote Workers: Federal protections generally apply to eligible remote workers on same basis as on-site workers.

Bereavement Leave

Arkansas Law:

Arkansas does not appear to have a state law requiring private employers to provide bereavement leave as of December 2025.

General Practice:

  • Many employers voluntarily provide bereavement leave as benefit
  • If provided, should be documented in policy and applied consistently
  • Any company policy becomes contractual obligation

State Employees: May have bereavement leave provisions under state personnel policies. Private sector employees do not have same entitlements.

Note: This is general information. Employers should consult HR professionals or legal counsel for policy development.

Anti-Discrimination Laws

Federal Anti-Discrimination Protections

Federal law prohibits employment discrimination based on protected characteristics. These laws generally apply to Arkansas employers meeting coverage thresholds.

Title VII of the Civil Rights Act of 1964

Prohibits discrimination based on:

  • Race
  • Color
  • Religion
  • Sex (including pregnancy, sexual orientation, gender identity)
  • National origin

Coverage:

  • Private employers with 15 or more employees
  • State and local governments
  • Employment agencies
  • Labor organizations

Enforcing Agency: U.S. Equal Employment Opportunity Commission (EEOC)

Local Contact:

  • Little Rock Area Office
  • 820 Louisiana Street, Suite 200, Little Rock, AR 72201
  • Phone: (501) 324-5060
  • National: 1-800-669-4000
  • Website: https://www.eeoc.gov

Age Discrimination in Employment Act (ADEA)

Prohibits discrimination based on:

  • Age (40 years and older)

Coverage:

  • Private employers with 20 or more employees
  • State and local governments
  • Employment agencies
  • Labor organizations

Enforcing Agency: EEOC

Americans with Disabilities Act (ADA)

Prohibits discrimination based on:

  • Disability

Requirements:

  • Reasonable accommodations for qualified individuals with disabilities
  • Cannot discriminate in hiring, firing, pay, job assignments, promotions, layoffs, training, benefits, and other aspects of employment

Coverage:

  • Private employers with 15 or more employees
  • State and local governments
  • Employment agencies
  • Labor organizations

Enforcing Agency: EEOC

Genetic Information Nondiscrimination Act (GINA)

Prohibits discrimination based on:

  • Genetic information

Coverage:

  • Private employers with 15 or more employees
  • Labor organizations
  • Employment agencies

Enforcing Agency: EEOC

Equal Pay Act

Requires:

  • Equal pay for equal work regardless of sex
  • Jobs must require equal skill, effort, and responsibility
  • Jobs must be performed under similar working conditions

Coverage:

  • Most employers (no minimum employee threshold)

Enforcing Agency: EEOC and U.S. Department of Labor

Source: Various federal statutes; EEOC – https://www.eeoc.gov

Arkansas State Anti-Discrimination Law

Arkansas Civil Rights Act:

Statutory Authority: Arkansas Code § 16-123-101 et seq.

According to Arkansas law, discrimination is prohibited in employment based on:

  • Race
  • Religion
  • National origin
  • Gender
  • Disability (in some contexts)

Coverage: Generally applies to employers with 9 or more employees for race, religion, national origin, and gender discrimination.

Administering Agencies: Arkansas does not have a state civil rights commission. Enforcement is generally through:

  • Private civil actions in court
  • Federal EEOC for overlapping claims

Note: Arkansas state law protections may be more limited than federal law in some respects. Federal law often provides broader coverage. Consult employment attorney for specific situations.

Source: Arkansas Code § 16-123-101 et seq.

Application to Remote Workers

Federal and state anti-discrimination laws generally apply to remote workers on the same basis as on-site workers, provided the employer meets coverage thresholds and the employee meets eligibility criteria.

Considerations for Remote Work:

  • Employers must provide reasonable accommodations to remote workers with disabilities where feasible
  • Anti-discrimination protections apply to hiring, compensation, promotion, termination, and all other terms/conditions of employment regardless of work location
  • Harassment and hostile work environment laws apply in remote settings (via email, video calls, messaging, etc.)

Note: Application of specific protections to remote work situations can be complex. Consult employment attorney for guidance.

How to File Discrimination Complaints

Federal Complaints (EEOC):

  • Must be filed within 180 days of alleged discrimination (300 days if state/local agency involved)
  • Can file online, by mail, or in person
  • Little Rock office: (501) 324-5060
  • National: 1-800-669-4000
  • Website: https://www.eeoc.gov/filing-charge-discrimination

Arkansas State Actions:

  • Consult employment attorney for guidance on filing under Arkansas Civil Rights Act
  • Arkansas Bar Association: https://www.arkbar.com/

Note: Filing deadlines are strict. If you believe you experienced discrimination, seek legal advice promptly to preserve rights.

 

Tax Information for Remote Workers

⚠️ NOT TAX ADVICE: This section provides general background information about tax matters. It does NOT constitute tax advice, tax planning, or tax filing guidance. Consult licensed tax professionals (CPA, enrolled agent, or tax attorney) for all tax matters.

Arkansas State Income Tax Overview

General Framework:

Arkansas imposes a progressive state income tax on individuals. According to the Arkansas Department of Finance and Administration:

2025 Tax Year Rates:

Arkansas has a two-bracket income tax system as of 2025:

Taxable Income Rate
$0 – $24,299 0% – 2% (low income tax table may apply)
$24,300 and above 3.9% (on amounts over threshold)

Note: The actual tax calculation is more complex and involves standard deductions, exemptions, and potentially the low income tax table for qualifying taxpayers. These are simplified brackets for illustration only.

Standard Deduction (2025): $2,410 (no separate amounts for single vs. married)

Personal Tax Credit: $29 per exemption (for taxpayer and each dependent)

Source: Arkansas Department of Finance and Administration – https://www.dfa.arkansas.gov/income-tax/

Who Must Pay Arkansas Income Tax?

Arkansas Residents:

  • Generally taxed on all income regardless of source (Arkansas and non-Arkansas income)
  • Resident is generally defined as someone domiciled in Arkansas or who maintains primary residence in Arkansas

Part-Year Residents:

  • Taxed on all income while Arkansas resident
  • Taxed on Arkansas-source income while non-resident

Non-Residents:

  • Taxed ONLY on Arkansas-source income
  • Income sourced to Arkansas if work is performed in Arkansas

Source: Arkansas Department of Finance and Administration guidance

Remote Work Tax Considerations

Critical Principle: State income tax typically applies based on where work is physically performed, not where employer is located.

Common Scenarios (General Principles Only):

Scenario 1: Arkansas resident works remotely for out-of-state company, performs all work from Arkansas home

  • Arkansas tax: Generally applies to all income (Arkansas resident taxed on all income)
  • Other state tax: May also apply if other state taxes non-residents on income from companies in that state (uncommon but possible)
  • Potential for double taxation: May need to claim credit for taxes paid to other state

Scenario 2: Non-resident works remotely from their home state for Arkansas company

  • Arkansas tax: Generally does NOT apply if all work performed outside Arkansas
  • Home state tax: Generally applies based on home state rules

Scenario 3: Employee travels between states, works partly in Arkansas and partly elsewhere

  • Complex allocation: May need to allocate income based on days/work performed in each state
  • Multiple state filing requirements: May need to file in multiple states

⚠️ Important: These are general principles. Actual tax obligations depend on:

  • Specific state laws and reciprocity agreements
  • Nature and extent of work in each location
  • Employer withholding practices
  • Individual circumstances

Note: Multi-state tax situations are extremely complex. ALWAYS consult tax professional.

Withholding Obligations for Employers

General Framework:

Arkansas employers generally must withhold Arkansas income tax from employee wages for:

  • Employees who are Arkansas residents
  • Employees performing work in Arkansas

Remote Work Complications:

  • Employer may need to withhold for multiple states if employee works in multiple locations
  • Employer must track where remote work is performed
  • Withholding requirements vary by state

Note: Employer withholding obligations are complex for remote workers. Employers should consult:

  • Arkansas Department of Finance and Administration: (501) 682-1100
  • Tax professional or payroll service
  • Employment tax attorney

Source: Arkansas withholding tax regulations – https://www.dfa.arkansas.gov/

Federal Income Tax Considerations

Home Office Deduction:

⚠️ Note: Tax Cuts and Jobs Act of 2017 suspended home office deduction for employees for tax years 2018-2025. The deduction may be available for self-employed individuals meeting requirements.

Self-employed individuals may potentially deduct home office expenses if:

  • Home office is used regularly and exclusively for business
  • Home office is principal place of business
  • Specific requirements are met

Note: This is complex area. Consult tax professional for guidance.

Source: IRS Publication 587 – https://www.irs.gov/publications/p587

Unemployment Insurance Tax

Employers generally must pay unemployment insurance tax on employee wages.

Arkansas Unemployment Tax:

  • Administered by Arkansas Division of Workforce Services
  • Rate varies by employer based on experience rating
  • Applies to wages paid for services performed in Arkansas

Remote Worker Considerations:

  • Tax obligation generally based on where services are performed
  • Multi-state employers may have obligations in multiple states

Contact: Arkansas Division of Workforce Services – (501) 682-2121 – https://dws.arkansas.gov/

Social Security and Medicare Taxes (FICA)

Federal Social Security and Medicare taxes apply to employee wages regardless of work location within U.S.

Rates (2025):

  • Social Security: 6.2% (employee) + 6.2% (employer) on wages up to $168,600
  • Medicare: 1.45% (employee) + 1.45% (employer) on all wages
  • Additional Medicare Tax: 0.9% on wages over $200,000 (employee only)

Note: Remote work location within U.S. does not change FICA obligations.

Source: Social Security Administration and IRS

Key Tax Resources

Arkansas Tax Questions:

Federal Tax Questions:

Professional Guidance:

  • Licensed CPA
  • IRS Enrolled Agent
  • Tax attorney
  • Find professionals: Arkansas Society of CPAs – https://www.arcpa.org/

⚠️ CRITICAL TAX REMINDER: This information is for general background only and is NOT tax advice. Tax laws are complex and change frequently. Individual circumstances vary significantly. Remote work creates multi-state tax complications that require professional guidance. ALWAYS consult licensed tax professionals for:

  • Tax filing requirements
  • Withholding obligations
  • Deduction eligibility
  • Multi-state tax issues
  • Any tax planning or compliance matters

Do not make tax decisions based on general information. Seek professional advice specific to your situation.

Remote Work Specific Considerations

General Legal Framework for Remote Work

As of December 2025, Arkansas does not appear to have comprehensive remote work-specific statutes governing private employment relationships. Remote workers generally are subject to the same employment laws as on-site workers, with application depending on specific circumstances.

Key Principles:

  • Most employment laws apply based on where work is performed, not employer location
  • Remote workers performing work in Arkansas generally are subject to Arkansas law
  • Multi-state remote work creates compliance complexities
  • Employer policies and contracts govern many aspects of remote work relationships

Jurisdictional Considerations

Which State’s Laws Apply?

When remote worker and employer are in different states, determining applicable law can be complex:

General Factors That May Be Relevant:

  • Location where work is physically performed
  • Employee’s state of residence
  • Employer’s state of incorporation/principal place of business
  • Contract provisions (choice of law clauses)
  • Nature and duration of work in each location

Common Issues:

  • Minimum wage: Generally where work is performed
  • Overtime: Generally where work is performed
  • Workers’ compensation: Generally where work is performed (with complexity for multi-state situations)
  • Unemployment insurance: Generally where work is performed
  • Income tax: Generally where work is performed
  • Discrimination laws: May depend on specific statute and circumstances

⚠️ Important: Multi-state employment requires careful legal analysis. Consult employment attorney familiar with multi-state issues.

Employer Considerations for Remote Workers

General Recommendations (Not Legal Requirements):

Employers hiring remote workers may wish to consider:

Written Policies and Agreements:

  • Remote work policy or agreement specifying terms and conditions
  • Work schedule and availability expectations
  • Equipment and technology provisions
  • Reimbursement policies for business expenses
  • Confidentiality and data security requirements
  • Workers’ compensation and reporting procedures

Compliance Tracking:

  • Systems to track where remote workers are performing work
  • Wage-hour compliance mechanisms (time tracking, break attestation)
  • Multi-state tax and employment law compliance
  • Workers’ compensation coverage verification

Safety and Ergonomics:

  • Guidance on setting up safe home office
  • Ergonomic equipment recommendations or provision
  • Injury reporting procedures

Communication and Supervision:

  • Clear expectations for communication and availability
  • Performance management systems appropriate for remote work
  • Tools for collaboration and supervision

Note: These are general considerations, not legal requirements. Specific needs vary by industry, business size, and circumstances. Consult HR professionals and legal counsel for policy development.

Employee Considerations for Remote Work

General Considerations (Not Legal Advice):

Remote workers may wish to consider:

Documentation:

  • Understanding written remote work policies and agreements
  • Documenting work hours, breaks, and overtime
  • Keeping records of work-related expenses
  • Maintaining records of work location(s)

Workspace:

  • Setting up dedicated work area if possible
  • Considering ergonomic setup
  • Understanding employer requirements or recommendations
  • Maintaining separation between work and personal space

Communication:

  • Understanding expectations for availability and responsiveness
  • Clarifying reporting relationships and procedures
  • Knowing injury reporting procedures

Tax and Benefits:

  • Understanding tax implications of work location
  • Verifying benefit eligibility and coverage
  • Maintaining records for tax purposes

Note: Individual circumstances vary. Consult appropriate professionals for specific situations.

Data Privacy and Security

General Framework:

While Arkansas does not appear to have comprehensive data privacy laws specifically for remote work as of December 2025, employers and employees should consider:

Employer Obligations (Based on Industry and Data Type):

  • Compliance with federal laws (HIPAA for health data, GLBA for financial data, etc.)
  • Industry-specific regulations
  • Contractual obligations to clients/customers
  • Protection of confidential and proprietary information

Remote Worker Considerations:

  • Secure network connections (VPN usage)
  • Protection of physical documents and devices
  • Password security
  • Compliance with employer policies
  • Awareness of phishing and security threats

Note: Data security requirements vary significantly by industry and data type. Consult IT security professionals and legal counsel.

Equipment and Expense Reimbursement

Arkansas Law:

Arkansas does not appear to have a general statute requiring employers to reimburse employees for business expenses as of December 2025.

General Framework:

  • Employers may voluntarily provide equipment or reimbursement
  • Any company policy becomes contractual obligation
  • Some expenses may affect minimum wage compliance if employee bears cost
  • Federal law may require reimbursement if expense would reduce employee compensation below minimum wage

Common Considerations:

  • Computer and office equipment
  • Internet service
  • Phone service
  • Software and subscriptions
  • Office supplies
  • Utilities (for dedicated home office space)

Note: Policies should be clearly documented. Consult HR professionals and legal counsel for policy development.

Right to Disconnect

Arkansas Law:

Arkansas does not appear to have a “right to disconnect” law requiring employers to allow employees to disconnect from work communications outside work hours as of December 2025.

General Considerations:

  • Federal and state wage-hour laws may require compensation for after-hours work
  • Employer policies may address expectations for after-hours availability
  • Work-life balance considerations

Note: While no specific law exists, employers should be mindful of wage-hour implications of after-hours work expectations.

Resources

Arkansas Government Agencies

Arkansas Department of Labor and Licensing

Arkansas Workers’ Compensation Commission

Arkansas Department of Finance and Administration

Arkansas Division of Workforce Services

Federal Agencies

U.S. Department of Labor

  • National: https://www.dol.gov/
  • Wage and Hour Division (Little Rock): (501) 223-9114
  • OSHA (Little Rock): (501) 224-2382

U.S. Equal Employment Opportunity Commission

Internal Revenue Service

Social Security Administration

Professional Organizations

Arkansas Bar Association

Arkansas Society of Certified Public Accountants

Arkansas Society for Human Resource Management (SHRM)

Legal Aid and Assistance

Legal Aid of Arkansas

Arkansas Access to Justice Commission

Important Forms and Publications

Arkansas Department of Labor Forms:

IRS Forms and Publications:

  • Form W-4: Employee withholding
  • Form 1099-NEC: Nonemployee compensation
  • Publication 15: Employer’s Tax Guide

Frequently Asked Questions

Note: These answers provide general information only, not legal advice. Individual circumstances vary. Consult appropriate professionals for specific situations.

Q: Does Arkansas require employers to allow remote work?

A: According to available information, Arkansas does not have a law requiring employers to offer remote work options as of December 2025. Remote work arrangements are generally negotiated between employers and employees or established through employer policies. However, reasonable accommodations under the Americans with Disabilities Act (ADA) may require remote work in some circumstances. Consult employment attorney for specific situations.

Q: If I live in Arkansas but work remotely for a company in another state, which state’s employment laws apply?

A: This is a complex question that may have different answers for different laws. Generally:

  • Minimum wage and wage-hour laws typically apply based on where work is physically performed
  • Workers’ compensation typically applies where work is performed (with complexity for multi-state situations)
  • Income tax typically applies where work is performed and/or where you reside
  • Anti-discrimination laws may depend on specific statute

Multi-state employment situations require careful analysis. Consult employment attorney and tax professional for guidance specific to your situation.

Q: Can my employer require me to use my personal equipment for remote work?

A: Arkansas does not appear to have a general law requiring employers to provide equipment or reimburse remote work expenses as of December 2025. However:

  • Any company policy on equipment or reimbursement becomes contractual obligation
  • If expenses would reduce your pay below minimum wage, federal law may require reimbursement or provision of equipment
  • Employer policies should clearly specify equipment expectations

Check your employer’s policies and consult HR or legal counsel if you have concerns.

Q: Am I covered by workers’ compensation if I’m injured while working from home in Arkansas?

A: Workers’ compensation coverage for home office injuries is highly fact-specific. Coverage depends on many factors including:

  • Whether injury arose out of and in course of employment
  • Whether you were performing work duties at time of injury
  • Whether home office was authorized/designated work area
  • Nature of injury and circumstances

If you are injured while working from home, report it to your employer immediately and consult Arkansas Workers’ Compensation Commission or workers’ compensation attorney for guidance on your specific situation.

AWCC Contact: (501) 682-3930 or (800) 622-4472

Q: Does Arkansas require paid sick leave for remote workers?

A: Arkansas does not have a law requiring private employers to provide paid sick leave (for remote or on-site workers) as of December 2025. Eligible employees may have rights to unpaid leave under federal FMLA. Check your employer’s policies for any sick leave benefits they may voluntarily provide.

Q: How do I know if I should be classified as an employee or independent contractor?

A: Worker classification depends on multiple factors and may vary depending on purpose (unemployment insurance, workers’ compensation, tax, etc.). Generally, classification involves examining:

  • Degree of control over work performance
  • Whether work is outside usual course of hiring entity’s business
  • Whether worker has independent business

This is a complex legal determination with significant consequences. Consult:

  • Arkansas Division of Workforce Services: (501) 682-3253
  • Arkansas Workers’ Compensation Commission: (501) 682-3930
  • Employment attorney
  • Tax professional

Never make classification decisions without professional guidance.

Q: What is Arkansas’s minimum wage for 2025/2026?

A: According to Arkansas Department of Labor, the minimum wage is $11.00/hour (effective since January 1, 2021). As of December 2025, no increase has been announced for 2026. Verify current rate with Arkansas Department of Labor: (501) 682-4599 or https://labor.arkansas.gov/

Q: Do I have to pay Arkansas income tax if I work remotely from Arkansas?

A: Generally, if you are performing work from a location in Arkansas, the income is Arkansas-source income subject to Arkansas taxation. Specific tax obligations depend on:

  • Your residency status
  • Where you perform work
  • Your employer’s location
  • Other factors

This is complex tax question. Consult tax professional (CPA, enrolled agent, or tax attorney) for guidance specific to your situation.

Arkansas DFA: (501) 682-1100 or https://www.dfa.arkansas.gov/

Q: Can my employer monitor my computer activity while I work from home?

A: Arkansas does not appear to have comprehensive employee monitoring laws as of December 2025. Generally:

  • Employers may monitor company-owned equipment
  • Employers should have clear policies about monitoring practices
  • Some federal laws may apply (ECPA, etc.)
  • Privacy expectations may be lower on company equipment

Check your employer’s policies. If you have concerns, consult employment attorney.

Q: Am I entitled to overtime if I work remotely?

A: Whether you are entitled to overtime depends on whether you are classified as exempt or non-exempt under federal FLSA and Arkansas law, not on whether you work remotely or on-site.

Non-exempt employees are generally entitled to overtime (1.5x regular rate) for hours over 40 in a workweek. Exempt employees (meeting salary and duties tests) are generally not entitled to overtime.

Classification is complex. Consult Arkansas Department of Labor or employment attorney if you have questions about your classification.

Arkansas DOL: (501) 682-4599

Q: Where can I file a complaint about unpaid wages or employment violations?

A:

For wage and hour violations:

For discrimination:

For workers’ compensation issues:

  • Arkansas Workers’ Compensation Commission: (501) 682-3930

Consult employment attorney to understand your rights and options.

Q: What should I do if I’m unsure about my employment rights as a remote worker?

A: If you have questions about your employment rights:

  1. Review employer policies and handbook
  2. Contact relevant agency:
    • Arkansas Department of Labor for wage/hour questions
    • AWCC for workers’ comp questions
    • EEOC for discrimination concerns
  3. Consult professional:
    • Employment attorney for legal advice
    • Tax professional for tax questions
    • HR professional for policy questions

Do not rely on general information for specific legal questions. Individual circumstances matter.

Q: Does this guide provide legal advice for my situation?

A: NO. This guide provides general background information only. It does NOT constitute legal, tax, or professional advice. It does NOT create an attorney-client or advisory relationship. Do NOT rely on this information for decisions affecting your rights or obligations.

For your specific situation, you MUST consult:

  • Licensed attorney in Arkansas
  • Qualified tax professional
  • Relevant government agency
  • Other appropriate professionals

Laws change frequently. Information may be outdated. Individual circumstances vary significantly. Professional guidance is essential.

Others

Tennessee
Missouri
Oklahoma
Mississippi
Louisiana

Legal Disclaimer: This guide provides general background information only and does not constitute legal, tax, or professional advice. Employment laws are complex and subject to interpretation. Consult licensed legal counsel and official state agencies for guidance specific to your situation.