Overtime Laws in Arkansas 2026: Pay Rates, Exemptions & Tax Deduction (2026)

Does Arkansas have overtime laws?

Yes. Arkansas has its own overtime law under the Arkansas Minimum Wage Act (Ark. Code Ann. §§ 11-4-201 et seq.), which requires employers with 4 or more employees to pay nonexempt workers 1.5 times their regular rate of pay for all hours actually worked over 40 in a workweek. Employers also covered by the federal FLSA must follow whichever standard is more favorable to the employee.

What is the overtime rate in Arkansas in 2026?

The overtime rate in Arkansas is 1.5 times the employee’s regular rate of pay for all hours worked over 40 in a workweek. Based on the Arkansas minimum wage of $11.00/hour, the minimum overtime rate is $16.50/hour. There is no double-time requirement under Arkansas or federal law for most workers.

Does Arkansas require daily overtime?

No. Overtime in Arkansas is calculated on a weekly basis only. Working more than 8 hours in a single day does not trigger overtime pay unless total hours actually worked in the workweek exceed 40.

Is mandatory overtime legal in Arkansas?

Under both the FLSA and Arkansas law, employers may require adult employees (age 16 and older) to work overtime. Arkansas does not have a general state statute prohibiting mandatory overtime. Arkansas is an at-will employment state; employees who refuse mandatory overtime may face disciplinary action or termination unless a contract or collective bargaining agreement provides otherwise. All mandatory overtime hours must be compensated at the applicable overtime rate.

Am I exempt from overtime in Arkansas?

Exemption depends on salary level and job duties. Under the FLSA (which applies in Arkansas), you must earn at least $684/week on a salary basis AND perform executive, administrative, or professional duties to qualify for the white-collar exemption. Arkansas does not set a higher threshold. Being paid a salary alone is not enough — you must also meet the duties test.

Can salaried employees receive overtime in Arkansas?

Yes. Receiving a salary does not automatically make an employee exempt from overtime. Salaried employees who earn less than $684/week are nonexempt and entitled to overtime pay regardless of their job title. Salaried employees earning $684/week or more must also meet the duties test; if they do not, they remain nonexempt and entitled to overtime.

Is overtime taxed in Arkansas?

Yes, at both the federal and state levels. Overtime pay is subject to federal income tax, FICA taxes (Social Security and Medicare), and Arkansas state income tax. However, under the One Big Beautiful Bill Act (2025–2028), FLSA-covered nonexempt employees may deduct up to $12,500 ($25,000 for joint filers) of the premium portion of overtime from federal taxable income. This deduction does not apply to Arkansas state income tax — Arkansas did not conform to IRC § 225, and HB 1822 (the state-level overtime tax exemption bill) died in committee in May 2025.

How do I calculate the federal overtime tax deduction?

For time-and-a-half pay, the deductible amount is one-third of your total overtime pay. For example, if you earned $6,000 in total overtime compensation at time-and-a-half during the year, the qualified overtime compensation deduction is $2,000. The IRS confirms this calculation method in Notice 2025-69. Claim the deduction on Schedule 1-A of Form 1040 for tax years 2025–2028.

Does the overtime tax deduction apply to my Arkansas state return?

No. Arkansas did not conform to IRC § 225. The premium portion of your overtime pay remains fully taxable at the state level. Your W-2 Box 16 (Arkansas state wages) will be higher than Box 1 (federal wages) if you received qualified overtime. No add-back adjustment is required on your Arkansas return — you simply do not deduct overtime on the state form.

How do I file an overtime complaint in Arkansas?

File a wage claim online with the Arkansas Department of Labor and Licensing, Labor Standards Section at https://labor.arkansas.gov/online-services/wage-claim-request/ (for claims of $2,000 or less). For claims over $2,000, or if you prefer federal enforcement, contact the U.S. DOL Wage and Hour Division at 1-866-487-9243 or online at https://www.dol.gov/agencies/whd/contact/complaints. Employees may also file a private lawsuit in state or federal court.

Can my employer fire me for refusing overtime in Arkansas?

In most cases, yes. Arkansas is an at-will employment state; an employer may discipline or terminate an employee for refusing overtime, unless a law, employment contract, or collective bargaining agreement provides otherwise. However, an employer cannot discharge or retaliate against an employee for filing an overtime complaint or participating in a wage investigation, under 29 U.S.C. § 215(a)(3) and Ark. Code Ann. § 11-4-218.

Can my employer give me comp time instead of overtime pay in Arkansas?

Only if your employer is a public agency (state or local government). Private-sector employers in Arkansas cannot legally substitute compensatory time off for overtime wages. If you are a public employee, comp time must accrue at 1.5 hours per overtime hour worked, subject to a cap of 240 hours (or 480 hours for public safety and emergency response employees). Source: 29 U.S.C. § 207(o); Arkansas ADLL: https://labor.arkansas.gov/labor/labor-standards/minimum-wage-and-overtime/

Do I get overtime for working on weekends or holidays in Arkansas?

No, not automatically. Under both the FLSA and Arkansas law, working on weekends or holidays does not by itself trigger overtime. Overtime is based on the total number of hours actually worked in the workweek, regardless of which days those hours fall on. You are entitled to overtime only if your total hours actually worked exceed 40 in a workweek.

Does paid holiday or sick time count toward my overtime calculation in Arkansas?

No. Hours paid but not actually worked — such as paid holidays, paid sick days, or paid vacation — do not count as hours worked for overtime calculation purposes under either the FLSA or the Arkansas Minimum Wage Act. The Arkansas Department of Labor and Licensing states explicitly: “If your employer pays you for hours not actually worked, such as for a holiday or a sick day, then those hours do not count as hours actually worked for the purpose of state and federal overtime law.”

What happens if my employer doesn’t pay overtime in Arkansas?

Employees may recover unpaid overtime wages plus liquidated damages equal to the unpaid amount (effectively doubling recovery), plus reasonable attorney’s fees and court costs, under 29 U.S.C. § 216(b). For claims of $2,000 or less, the Arkansas Division of Labor may pursue collection on your behalf. Willful violations by employers may also result in civil monetary penalties of up to $2,451 per violation and criminal prosecution.

What is the statute of limitations for overtime claims in Arkansas?

Under the FLSA: 2 years from the date of the violation, or 3 years if the violation was willful. The Arkansas Division of Labor’s wage claim process handles claims for recent violations up to $2,000. For private lawsuits under the FLSA, the limitations period begins from the date of each underpayment, not from the date you stopped working for the employer.

Does the 4-employee threshold under Arkansas law affect my overtime rights?

If your employer has fewer than 4 employees, you are not covered by the Arkansas Minimum Wage Act’s overtime provisions. However, you may still be covered by the federal FLSA if your employer engages in interstate commerce or has annual revenues exceeding $500,000 — which applies to the vast majority of Arkansas businesses. If your employer has 4 or more employees, both state and federal law apply.