Upcoming! $11.00 Minimum Wage in Arkansas: Eligibility And Key Overtime Rules

MJP –

In Arkansas, the minimum wage is set at $11.00 per hour, a rate that was enacted following a voter-approved initiative in 2018. This wage increase, which took effect on January 1, 2021, is part of a broader effort to improve compensation for low-wage workers across the state.

While the $11.00 rate is a significant improvement over the federal minimum wage of $7.25, workers and employers need to understand who qualifies for this wage and the rules surrounding overtime pay.

Who’s Eligible for Arkansas’ Minimum Wage?

Most workers in Arkansas are entitled to the state’s minimum wage of $11.00 per hour. However, there are certain exceptions based on job type, employer size, and specific worker categories.

Eligible Workers

• Full-time and part-time employees: Regardless of whether an employee works full-time or part-time, they are generally entitled to the $11.00 minimum wage. This applies to workers across various industries, including retail, hospitality, healthcare, and food services.

• Employees of businesses with 4 or more employees: Arkansas law requires that businesses employing four or more workers must comply with the state minimum wage. Smaller employers may not be subject to the same regulations.

Exemptions from the Minimum Wage

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Not all workers are eligible for the $11.00 minimum wage. Several exemptions apply, including:

• Tipped employees: Workers in positions where they earn tips, such as servers or bartenders, can be paid a lower base wage as long as their total earnings, including tips, meet or exceed $11.00 per hour. In Arkansas, the minimum cash wage for tipped employees is $2.63 per hour, but employers must make up the difference if tips don’t bring total earnings up to $11.00.
• Small businesses with fewer than 4 employees: Employers with fewer than four employees may not be required to pay the state minimum wage. However, they must still comply with the federal minimum wage of $7.25 per hour.

• Farm workers: Some agricultural employees are exempt from the state’s minimum wage requirements, although certain conditions apply depending on the nature of the work and employer size.
• Students and trainees: Student workers and individuals undergoing specific types of training may be eligible for lower wages under certain conditions. Employers must comply with rules that allow for lower wages for these groups, typically under special certificates issued by the Department of Labor.
• Certain disabled workers: Under a federal provision, employers may pay workers with disabilities a lower wage, provided they meet specific criteria and hold a certificate from the Department of Labor.

Overtime Rules in Arkansas

In addition to the minimum wage, Arkansas workers are protected by state and federal overtime laws. These laws ensure that employees who work beyond a standard workweek are compensated fairly.

Overtime Pay Requirements

Under Arkansas law, non-exempt employees are entitled to overtime pay at a rate of 1.5 times their regular hourly wage for all hours worked beyond 40 hours in a workweek. For minimum-wage employees earning $11.00 per hour, this means their overtime rate is $16.50 per hour.

Who Qualifies for Overtime Pay?

Most hourly workers in Arkansas are entitled to overtime pay if they work more than 40 hours in a week. This includes workers in industries such as retail, food service, healthcare, and manufacturing.

Exemptions from Overtime Pay

Certain employees are exempt from overtime pay requirements, typically those in managerial, administrative, or professional roles. To be considered exempt, workers must meet specific criteria outlined by federal law under the Fair Labor Standards Act (FLSA):

• Salaried employees earning above a certain threshold may not be entitled to overtime pay.
• Executives, administrative, and professional employees: These positions often involve higher-level duties and decision-making responsibilities, and workers in these roles may not qualify for overtime if they meet federal exemption criteria.
• Outside sales employees: Workers who spend a significant portion of their time working outside the office and selling products or services may be exempt from overtime regulations.

Overtime for Tipped Employees

Tipped employees in Arkansas are also entitled to overtime pay. For example, if a tipped employee works more than 40 hours in a week, their overtime rate must be calculated based on the full $11.00 minimum wage—not the lower tipped wage of $2.63.

This ensures that tipped workers receive adequate compensation for any overtime hours worked.

Enforcement and Worker Protections

Arkansas has mechanisms in place to ensure that workers receive the pay they are entitled to. The Arkansas Department of Labor and Licensing is responsible for enforcing minimum wage and overtime laws.

Workers who believe they have been denied fair wages or overtime pay can file a complaint with the department, which may result in investigations, back pay, and penalties for non-compliant employers.

Additionally, employers are prohibited from retaliating against workers who assert their rights to fair pay. This means that workers who file complaints about unpaid wages or report labor violations are legally protected from being fired, demoted, or otherwise penalized for doing so.

Conclusion

The $11.00 minimum wage in Arkansas represents a significant improvement for many workers, offering higher earnings than the federal minimum wage. However, understanding who is eligible for this wage, and the overtime rules that accompany it, is essential for both workers and employers.

With protections in place to ensure fair compensation, Arkansas workers can benefit from clear guidelines and avenues for recourse if they are not paid what they are owed.