Arkansas Minimum Wage 2026
⚠️Informational only — not legal or tax advice.
Last Updated: February 4, 2026
Last Reviewed: February 4, 2026
Applicable Period: 2026
Jurisdiction: State of Arkansas, United States
Update Schedule: Quarterly reviews in 2026; annual reviews thereafter
Table of Contents
- Introduction
- Arkansas Minimum Wage – 2026 Quick Reference
- Overview of Minimum Wage Law in Arkansas
- Current Minimum Wage Rates in Arkansas 2026
- Minimum Wage for Tipped Employees
- Local Minimum Wage Ordinances in Arkansas
- Who Is Covered and Who Is Exempt
- Employer Obligations and Enforcement
- Arkansas Minimum Wage vs Federal Law
- Minimum Wage Posting Requirements
- Frequently Asked Questions
- Information Verification Log
Introduction
The minimum wage in Arkansas establishes the lowest hourly compensation that employers must legally provide to covered employees. For 2026, Arkansas maintains a minimum wage of $11.00 per hour, with specific provisions for tipped employees and employer size requirements. The state permits a tip credit, and no local jurisdictions have enacted higher minimum wage ordinances.
Minimum wage regulations in Arkansas operate under Arkansas Code § 11-4-201 et seq. (the Arkansas Minimum Wage Act), accessible through the Arkansas State Legislature website alongside federal requirements established by the Fair Labor Standards Act (FLSA). When state or local minimum wage rates exceed the federal standard, employers must comply with the higher applicable rate. Arkansas allows tip credits, and state law prohibits cities and counties from establishing their own minimum wage rates.
This page provides an authoritative overview of Arkansas minimum wage law for 2026, including current rates, tipped employee provisions, coverage and exemptions, enforcement procedures, and compliance requirements. All information is compiled from official government sources.
| Arkansas Minimum Wage — 2026 Quick Reference | |||
|---|---|---|---|
| Category | Rate | Effective Date | Official Source |
| State minimum wage | $11.00/hour | January 1, 2021 | Arkansas Code § 11-4-210 |
| Tipped minimum wage | $2.63/hour | January 1, 2021 | Arkansas DOL |
| Tip credit allowed | Yes (up to $8.37) | January 1, 2021 | Arkansas Minimum Wage Act |
| Next scheduled increase | None | N/A | No further increases scheduled |
| Rate adjustment mechanism | Fixed | — | Requires legislative action |
| Employer size requirement | 4+ employees | Ongoing | Arkansas Code § 11-4-203 |
| Federal minimum wage | $7.25/hour | July 24, 2009 | U.S. DOL |
| Local minimum wages | Prohibited | — | Act 643 of 2017 |
Last verified: February 7, 2026 via Arkansas Department of Labor and Licensing
Overview of Minimum Wage Law in Arkansas
Legal Authority
Arkansas minimum wage requirements are established under the Arkansas Minimum Wage Act, Arkansas Code § 11-4-201 et seq. The Arkansas Department of Labor and Licensing, Labor Standards Division administers and enforces minimum wage regulations in Arkansas. The current minimum wage of $11.00 per hour was established through Initiated Act 5 of 2018, approved by Arkansas voters in November 2018, with the final increase taking effect on January 1, 2021.
Relationship to Federal Law
Under the Fair Labor Standards Act (FLSA), the federal minimum wage establishes a floor of $7.25 per hour for covered employers and employees. Arkansas law operates independently of federal minimum wage standards but requires compliance with the higher applicable rate. When both state and federal minimum wage laws apply, employers must pay whichever rate is higher.
Because Arkansas’s minimum wage of $11.00 exceeds the federal minimum, most covered employers must comply with the state rate. Employers with fewer than four employees who are covered by the FLSA must pay at least the federal minimum wage of $7.25 per hour.
Coverage Scope
Arkansas minimum wage law applies to employers with four or more employees. Employers covered by the federal Fair Labor Standards Act (FLSA) are also covered by Arkansas law if they have four or more employees. The state law covers most private sector employees, including full-time, part-time, temporary, and seasonal workers in covered establishments.
Higher Rate Principle
The principle of “higher prevailing rate” requires employers to pay the highest applicable minimum wage—whether federal, state, or local. In Arkansas, employers must compare the federal minimum of $7.25 and the state minimum of $11.00 to determine which rate governs. Because Arkansas prohibits local minimum wage ordinances, there are no local rates to consider.
Current Minimum Wage Rates in Arkansas 2026
Standard Hourly Minimum Wage
As of January 1, 2021, the standard minimum wage in Arkansas is $11.00 per hour for covered employees. This rate applies to all non-exempt employees of employers with four or more employees. The rate has remained at $11.00 since January 1, 2021, representing the final phase of a voter-approved increase that began at $9.25 in 2019 and rose to $10.00 in 2020.
Arkansas adjusts its minimum wage only through legislative action or voter initiative. The $11.00 rate was established through Initiated Act 5 of 2018, which Arkansas voters approved by a margin of 68% to 32% in the November 2018 general election. The act implemented a three-year schedule of minimum wage increases designed to provide Arkansas workers with higher earnings while allowing businesses time to adjust.
Employer Size Requirements
Arkansas minimum wage law contains a significant employer size threshold that exempts smaller businesses from state minimum wage requirements:
Employers with four or more employees: $11.00 per hour
Coverage: All employees of businesses meeting the employee threshold
Authority: Arkansas Code § 11-4-203(3)
Employers with fewer than four employees: Not covered by Arkansas minimum wage law
Note: Federal minimum wage of $7.25 per hour may still apply if the employer is covered by the FLSA
Authority: Arkansas Minimum Wage Act
The four-employee threshold is determined by counting all employees, regardless of whether they work full-time or part-time. Employers should count all individuals on their payroll to determine if they meet the threshold for state minimum wage coverage. Even if exempt from Arkansas minimum wage requirements, employers engaged in interstate commerce or meeting other FLSA coverage standards must pay at least the federal minimum wage of $7.25 per hour.
Youth and Training Wages
Arkansas permits reduced wage rates for certain categories of workers during initial employment or training periods:
Full-Time Student Wage
- Rate: $9.35 per hour (85% of standard minimum)
- Eligibility: Full-time students attending accredited Arkansas educational institutions
- Duration: Limited to 20 hours per week during school sessions; 40 hours per week during breaks
- Requirements: Employer must obtain full-time student certificate from Arkansas Department of Labor and Licensing
- Authority: Arkansas Administrative Rules 11 CAR § 010.14-103
Learner and Apprentice Wage
- Rate: $9.35 per hour (85% of standard minimum)
- Eligibility: Learners and apprentices with valid U.S. Department of Labor certification
- Requirements: Current certification from U.S. DOL required
- Authority: Arkansas Administrative Rules 11 CAR § 010.14-104
Employers seeking to pay subminimum wages to full-time students must obtain a certificate from the Arkansas Department of Labor and Licensing before employment begins at the reduced rate. The student must attend an accredited institution within Arkansas on a full-time basis according to the institution’s definition. Full-time student status continues during Christmas, summer, and other school vacations.
Scheduled Minimum Wage Increases
No minimum wage increases are currently scheduled in Arkansas. The rate will remain $11.00 per hour unless changed by future legislation or voter initiative. Arkansas law does not include provisions for automatic annual adjustments based on inflation or other economic factors.
The current $11.00 minimum wage represents the final step of Initiated Act 5 of 2018, which implemented a three-year phase-in schedule:
- January 1, 2019: $9.25 per hour
- January 1, 2020: $10.00 per hour
- January 1, 2021: $11.00 per hour
Any future changes to Arkansas’s minimum wage will require either new legislation passed by the Arkansas General Assembly or a new voter-approved initiative.
Minimum Wage for Tipped Employees
Tipped Employee Cash Wage
Arkansas permits employers to pay tipped employees a reduced cash wage, provided that employee tips combined with the cash wage equal at least the full minimum wage.
Cash wage requirement: $2.63 per hour
Maximum tip credit: $8.37 per hour
Total minimum compensation: $11.00 per hour (cash wage + tips)
The tip credit provision allows employers to count a portion of employees’ tips toward meeting minimum wage obligations. However, the employer must ensure that the combination of the $2.63 hourly cash wage plus tips received equals or exceeds $11.00 per hour for all hours worked. If tips are insufficient to reach the $11.00 minimum, the employer must pay the difference.
Who Qualifies as a Tipped Employee
Under Arkansas law, a “tipped employee” is defined as an employee who customarily and regularly receives more than $20 per month in tips. Qualifying occupations typically include:
- Restaurant servers and bartenders
- Hotel and casino service workers
- Parking attendants and valets
- Delivery drivers who receive tips
- Hairdressers and barbers in tipping environments
- Other service industry workers receiving regular tips
Employees who receive only occasional or minimal tips do not qualify for the tip credit provision and must be paid the full $11.00 per hour minimum wage.
Employer Obligations for Tipped Workers
Employers who claim a tip credit must:
- Inform employees of the tip credit provisions before using the credit. Employees must understand that their base pay is $2.63 per hour and that tips are expected to bring total compensation to at least $11.00 per hour.
- Ensure total compensation (cash wage plus tips) equals or exceeds $11.00 per hour for all hours worked. Employers must calculate this for each workweek, not averaged over longer periods.
- Pay the difference if an employee’s tips fail to bring total compensation to the minimum wage. The employer must make up any shortfall to ensure the employee receives at least $11.00 per hour.
- Maintain accurate records of employee tips and hours worked. Employers must keep detailed records showing tips received, hours worked, and total compensation for each employee.
- Allow employees to retain all tips except where valid tip pooling arrangements exist. Employers and managers cannot retain any portion of employee tips.
Tip Pooling and Sharing
Arkansas law permits tip pooling arrangements where tipped employees share tips with other employees who customarily and regularly receive tips. Valid tip pooling arrangements typically involve:
Permitted participants: Servers, bartenders, bussers, food runners, and other service staff who directly serve customers or support those who do may participate in tip pools.
Prohibited participants: Employers, managers, and supervisors may not participate in tip pools or retain any portion of employee tips. This prohibition extends to owners, even if they occasionally perform service duties.
Tip pool requirements: Tip pools must be distributed fairly among participating employees. Employers may set reasonable tip pool policies but cannot retain any portion of pooled tips for themselves or for management.
Service charges: Mandatory service charges added to customer bills are not considered tips under Arkansas law. Employers may retain service charges unless their policy explicitly states that service charges will be distributed to employees as tips.
Local Minimum Wage Ordinances in Arkansas
Arkansas law prohibits cities and counties from enacting their own minimum wage rates that differ from the state minimum wage. Under Act 643 of 2017, municipalities and counties lack authority to establish higher minimum wages or impose additional wage requirements beyond state law.
The prohibition on local minimum wages ensures a uniform statewide rate of $11.00 per hour for all covered employers in Arkansas. No cities or counties in Arkansas have enacted or may enact rates exceeding the state minimum wage. Employers in all Arkansas jurisdictions must comply with the uniform statewide rate, provided they have four or more employees.
Before the 2017 preemption law, no Arkansas cities or counties had established local minimum wages higher than the state rate. The preemption statute was enacted proactively to prevent local jurisdictions from creating what legislators described as a “patchwork” of different minimum wage rates across the state.
Who Is Covered and Who Is Exempt
Employees Covered by Arkansas Minimum Wage
Arkansas minimum wage law covers most employees of private sector employers with four or more employees. Unless specifically exempted, covered employees include:
- Private sector workers: Full-time and part-time employees of private businesses meeting the four-employee threshold
- Hourly employees: Workers compensated on an hourly basis in covered establishments
- Salaried non-exempt employees: Employees paid on a salary basis who do not qualify for executive, administrative, or professional exemptions
- Temporary and seasonal workers: Employees hired for temporary or seasonal work by covered employers
- Minor employees: Workers under age 18, subject to child labor law restrictions but generally covered at the same minimum wage rate as adults
Common Exemptions from Minimum Wage Requirements
The following categories of employees may be exempt from Arkansas minimum wage requirements:
Executive, Administrative, and Professional Employees
Employees performing bona fide executive, administrative, or professional duties may be exempt if they meet both salary and duties tests established under federal regulations. Arkansas adopts the federal exemption standards set forth in 29 C.F.R. Part 541. Employees must earn a salary of at least $684 per week and primarily perform exempt duties to qualify for this exemption.
Outside Sales Employees
Employees whose primary duty is making sales away from the employer’s place of business and who are customarily and regularly engaged away from the employer’s business location are exempt from minimum wage requirements under Arkansas Code § 11-4-203(3)(A).
Agricultural Workers
Agricultural employees are generally exempt from Arkansas minimum wage requirements under Arkansas Code § 11-4-203(3)(B). This exemption includes employees engaged in farming operations, but federal minimum wage requirements may still apply to agricultural workers meeting FLSA coverage standards.
Full-Time Students
Full-time students working part-time at qualifying institutions may be paid 85% of the minimum wage ($9.35 per hour) subject to restrictions on hours worked and proper certification from the Arkansas Department of Labor and Licensing.
Learners and Apprentices
Employers may pay learners and apprentices 85% of the minimum wage ($9.35 per hour) if they hold valid certification from the U.S. Department of Labor permitting the reduced rate.
Workers with Disabilities
Employers may obtain special certificates allowing payment of subminimum wages to workers whose earning or productive capacity is impaired by physical or mental disabilities. The certificate process is administered by the U.S. Department of Labor.
Independent Contractors
Properly classified independent contractors are not employees and therefore not covered by minimum wage requirements. However, Arkansas applies tests to determine independent contractor status, and misclassification may result in penalties and back wages. Arkansas adopted the IRS 20-factor test to determine employment status under recent legislation.
Small Employers
Employers with fewer than four employees are exempt from Arkansas minimum wage requirements. However, federal minimum wage of $7.25 per hour may still apply if the employer is covered by the Fair Labor Standards Act.
Additional Exemptions
Arkansas law provides numerous other exemptions, including employees of certain nonprofit organizations, seasonal recreational establishments, and other categories specified in Arkansas Code § 11-4-203(3). Employers should consult the statute and administrative rules or contact the Arkansas Department of Labor and Licensing to determine if specific exemptions apply to their workforce.
Employer Obligations and Enforcement
Employer Compliance Requirements
Employers subject to Arkansas minimum wage law must:
- Pay the applicable minimum wage for all hours worked. Employers with four or more employees must pay at least $11.00 per hour to non-exempt workers.
- Maintain accurate payroll records documenting hours worked and wages paid. Records must be kept for three years and include employee names, addresses, occupations, rates of pay, hours worked each day and week, total wages paid, and any deductions.
- Display required posters informing employees of minimum wage rates. The Arkansas minimum wage poster must be displayed in a conspicuous location where employees can easily see it.
- Provide compliant wage statements showing gross wages, deductions, and net pay each pay period.
- Pay wages on regular paydays and provide final wages promptly upon termination. If the employer terminates the employee, final wages are due by the next regular payday. Failure to pay within seven days of the next regular payday results in double damages.
- Properly classify workers as employees or independent contractors. Misclassification may result in back wages, penalties, and other liabilities.
Enforcement of Minimum Wage Law
The Arkansas Department of Labor and Licensing, Labor Standards Division enforces minimum wage requirements in Arkansas. The agency:
- Investigates wage complaints filed by employees
- Conducts routine compliance inspections of workplaces
- Issues citations and orders for wage violations
- Collects unpaid wages and penalties on behalf of employees
- Refers cases for criminal prosecution when appropriate
Filing a Complaint: Employees who believe they have not been paid proper minimum wage may file a complaint with the Arkansas Department of Labor and Licensing through:
- Online complaint portal: Arkansas DOL Complaint Portal
- Phone: (501) 682-4599
- Mail: Arkansas Department of Labor and Licensing, Labor Standards Division, 10421 West Markham Street, Little Rock, AR 72205
Arkansas law prohibits retaliation against employees who file wage complaints or cooperate with investigations. Employers who retaliate may face additional penalties and legal liability.
Penalties for Minimum Wage Violations
Employers who violate Arkansas minimum wage law may be subject to:
Back Wages: Employers must pay employees the difference between wages paid and the required minimum wage for all hours worked, typically going back two years from the date of complaint filing.
Double Damages: Under Arkansas law, employees may recover double the unpaid wages owed when employers fail to pay minimum wage or overtime. This serves as both compensation for the employee and a penalty against the employer.
Civil Penalties: Administrative penalties may be assessed against employers who willfully or repeatedly violate minimum wage requirements. Penalties increase for subsequent violations.
Interest: Unpaid wages accrue interest from the date wages were due until paid.
Criminal Penalties: Willful violations of minimum wage law may constitute a misdemeanor punishable by fines. Employers who knowingly fail to pay required minimum wages may face criminal prosecution in addition to civil liability.
Attorney Fees: Employees who prevail in minimum wage actions may recover reasonable attorney fees and costs of litigation, making it financially feasible for workers to pursue claims even for relatively small amounts of unpaid wages.
Arkansas Minimum Wage vs Federal Law
The Federal Minimum Wage Floor
The Fair Labor Standards Act (FLSA) establishes a federal minimum wage of $7.25 per hour, which has remained unchanged since July 24, 2009. This federal rate sets a floor for minimum wage requirements nationwide and applies to employers engaged in interstate commerce or with annual gross sales exceeding $500,000.
When State Law Applies
Because Arkansas’s minimum wage of $11.00 exceeds the federal minimum, most employees working in Arkansas are entitled to the higher state rate. The federal minimum serves as a fallback only for employees whose employers have fewer than four employees and therefore fall outside Arkansas minimum wage coverage but remain covered by federal law.
Employers with four or more employees must pay the Arkansas minimum wage of $11.00 per hour. Employers with fewer than four employees are exempt from state minimum wage requirements but may still be required to pay the federal minimum wage of $7.25 per hour if they meet FLSA coverage standards.
Higher Applicable Rate Rule
The fundamental principle governing minimum wage compliance is that employers must pay whichever rate—federal or state—provides employees the highest hourly wage. This rule ensures workers receive maximum protection under applicable law.
Practical Application:
- Identify whether the employer is covered by Arkansas minimum wage law (four or more employees)
- Determine whether the employer is covered by the Fair Labor Standards Act
- Pay the highest applicable minimum wage rate
For most Arkansas employers with four or more employees, this means paying the state minimum wage of $11.00 per hour, as it exceeds the federal minimum of $7.25.
| Regional Minimum Wage Context — Arkansas (2026) | |
|---|---|
| Arkansas’s minimum wage of $11.00/hour can be compared to surrounding states for regional context. | |
| State | 2026 Rate |
| Arkansas | $11.00 |
| Missouri | $12.00 |
| Oklahoma | $7.25 |
| Tennessee | $7.25 |
| Mississippi | $7.25 |
| Louisiana | $7.25 |
| Texas | $7.25 |
Arkansas’s rate exceeds the federal minimum and the rates in five of its six neighboring states. Only Missouri has a higher minimum wage than Arkansas. For detailed state-by-state minimum wage comparisons and analysis, see our comprehensive minimum wage comparison resources.
Note: Rates shown are standard minimum wages and may not reflect local or industry-specific variations in other states.
Minimum Wage Posting Requirements
Arkansas law requires employers to display an official minimum wage notice in a conspicuous location accessible to all employees. The poster must include current wage rates, employee rights, and contact information for the Arkansas Department of Labor and Licensing.
Where to obtain posters:
- Download from Arkansas Department of Labor and Licensing website
- Request printed copies by calling (501) 682-4500
- Available languages: English and Spanish
Posting locations: The notice must be posted in each workplace location where employees can readily see it, typically near time clocks, in break rooms, or at other prominent locations. Employers with multiple work sites must post notices at each location.
Compliance: Failure to display required posters may result in citations and penalties from the Arkansas Department of Labor and Licensing. Employers must update posters when minimum wage rates change or when the agency issues revised poster versions.
Frequently Asked Questions: Minimum Wage in Arkansas 2026
What is the minimum wage in Arkansas in 2026?
The minimum wage in Arkansas is $11.00 per hour as of January 1, 2021. This rate applies to employers with four or more employees. Tipped employees must receive at least $2.63 per hour in cash wages, with tips bringing total compensation to $11.00 per hour.
When is the next minimum wage increase in Arkansas?
No minimum wage increases are currently scheduled in Arkansas. The rate will remain $11.00 per hour unless changed by future legislation or voter initiative. Arkansas law does not include automatic annual adjustments based on inflation.
Does Arkansas allow tip credit?
Yes, Arkansas permits employers to pay tipped employees a cash wage of $2.63 per hour, with up to $8.37 in tip credit, provided total compensation reaches $11.00 per hour. If tips are insufficient to reach the minimum wage, employers must pay the difference.
Are there different minimum wages in different cities in Arkansas?
No, Arkansas maintains a uniform statewide minimum wage of $11.00. Under Act 643 of 2017, cities and counties are prohibited from enacting minimum wages that differ from the state rate. All Arkansas jurisdictions apply the same $11.00 minimum wage for covered employers.
Who is exempt from minimum wage in Arkansas?
Common exemptions from Arkansas minimum wage include executive, administrative, and professional employees meeting salary and duties tests, outside sales employees, agricultural workers, and employers with fewer than four employees. Full-time students and apprentices with proper certification may be paid 85% of the minimum wage. Independent contractors are not covered.
What happens if an employer pays below minimum wage in Arkansas?
Employers who pay below minimum wage face back wage liability for up to two years, double damages equal to the unpaid wages, civil penalties, and potential criminal prosecution. Employees can file complaints with the Arkansas Department of Labor and Licensing to recover unpaid wages. Arkansas law prohibits retaliation against workers who report violations.
Do small businesses have to pay minimum wage in Arkansas?
Arkansas exempts employers with fewer than four employees from state minimum wage requirements. However, federal minimum wage of $7.25 per hour may still apply if the employer is covered by the Fair Labor Standards Act based on interstate commerce or gross revenue thresholds.
Is Arkansas’s minimum wage higher than the federal minimum?
Yes, Arkansas’s minimum wage of $11.00 is $3.75 higher than the federal minimum wage of $7.25. Employers in Arkansas must pay the higher state rate when both laws apply.
How often does Arkansas increase its minimum wage?
Arkansas adjusts its minimum wage only through legislative action or voter initiative. The state does not have automatic annual adjustments based on inflation or other economic indicators. The current rate of $11.00 has been in effect since January 1, 2021, following voter approval of Initiated Act 5 in 2018.
Can employers pay less than minimum wage during training?
Arkansas permits employers to pay full-time students 85% of the minimum wage ($9.35 per hour) during the first 90 days of employment if the employer obtains proper certification from the Arkansas Department of Labor and Licensing. Hours are limited to 20 per week during school sessions and 40 per week during breaks.
How to file a minimum wage complaint in Arkansas
Employees who believe they have not received proper minimum wage compensation may file a wage complaint with the Arkansas Department of Labor and Licensing. Filing methods include:
- Online portal: Arkansas DOL Complaint Portal
- Phone: (501) 682-4599
- Mail: Arkansas Department of Labor and Licensing, Labor Standards Division, 10421 West Markham Street, Little Rock, AR 72205
The Arkansas Department of Labor and Licensing will investigate the complaint and may recover unpaid wages on behalf of the employee. Arkansas law prohibits employer retaliation against workers who file wage complaints or participate in investigations.
Do remote workers in Arkansas get the Arkansas minimum wage?
Generally, the minimum wage of the jurisdiction where the employee physically performs work applies. Remote workers located in Arkansas are typically entitled to Arkansas’s minimum wage of $11.00, even if their employer is based in another state. Employers should ensure remote workers receive at least the minimum wage required by the state where work is performed.
Information Verification Log
All information on this page has been compiled from official government sources and verified for accuracy as of the dates below.
| Arkansas Minimum Wage — Official Sources (2026) | ||
|---|---|---|
| Source | Last Verified | Full URL |
| Arkansas Code § 11-4-201 et seq. | February 7, 2026 | https://www.arkleg.state.ar.us/ArkansasLaw |
| Arkansas Department of Labor and Licensing | February 7, 2026 | https://labor.arkansas.gov/labor/labor-standards/minimum-wage-and-overtime/ |
| Arkansas Administrative Rules | February 7, 2026 | https://codeofarrules.arkansas.gov/ |
| Fair Labor Standards Act (FLSA) | February 7, 2026 | https://www.dol.gov/agencies/whd/flsa |
| U.S. Department of Labor – State Minimum Wage Laws | February 7, 2026 | https://www.dol.gov/agencies/whd/minimum-wage/state |