Arkansas Minimum Wage: Rate, Tipped Wage, and Local Rules

As of 2026, Arkansas's state minimum wage is $11.00 per hour for most non-tipped employees, well above the federal floor of $7.25 per hour under the Fair Labor Standards Act (FLSA). That $11.00 rate has been in place since January 1, 2021, the final step of a series of increases approved by Arkansas voters in November 2018 (Issue 5). Arkansas does not index its minimum wage to inflation and has no further increases currently scheduled in statute, so the rate has held steady at $11.00 for several years. Because rates can change through new legislation or ballot measures, always confirm the current figure with the Arkansas Department of Labor and Licensing before relying on it.

Who is covered by the Arkansas minimum wage

The Arkansas Minimum Wage Act applies to employers with four (4) or more employees. If an employer has fewer than four employees, the state act generally does not apply, though the business may still be covered by the federal FLSA if it meets the FLSA's tests for enterprise or individual coverage (such as engaging in interstate commerce or having annual gross sales of at least $500,000).

Where both the state and federal minimum wage apply, employees are entitled to the higher of the two rates. Since Arkansas's $11.00 exceeds the federal $7.25, covered Arkansas workers are paid the state rate. Workers covered only by federal law (for example, at very small businesses that fall under the four-employee threshold but still meet FLSA coverage) are entitled to at least $7.25.

Tipped employees: cash wage and tip credit

Arkansas allows employers of tipped workers to pay a lower direct cash wage of $2.63 per hour, provided the employee's tips make up the difference to bring total earnings to at least the full $11.00 minimum wage. The gap the employer is permitted to count toward the minimum wage is the tip credit, which in Arkansas is the difference between $11.00 and $2.63, or $8.37 per hour.

Key rules for tipped pay in Arkansas:

• A tipped employee is generally one who customarily and regularly receives more than $20 a month in tips.
• If an employee's cash wage plus tips does not reach the full minimum wage in a given pay period, the employer must make up the shortfall so the worker earns at least $11.00 per hour.
• Tips are the property of the employee. Valid tip pooling among employees who customarily receive tips is generally permitted, but employers, managers, and supervisors may not keep employees' tips.
• The employer must be able to show that the tip credit is properly applied; if it cannot, it owes the full minimum wage as a direct cash wage.

The federal FLSA sets a much lower tipped cash wage of $2.13 per hour. Arkansas's $2.63 is higher, so Arkansas employers must use the state's $2.63 floor for tipped workers, not the federal $2.13.

Overtime and how it interacts with the minimum wage

Arkansas follows the same basic overtime structure as federal law: non-exempt employees must receive one and one-half times their regular rate for hours worked over 40 in a workweek. Arkansas does not have a daily overtime requirement. For a minimum-wage worker, that means overtime is calculated on the regular rate (at least $11.00), and for tipped workers the overtime rate is based on the full minimum wage, not the reduced cash wage.

Common exemptions

Not every worker is entitled to the standard minimum wage. Arkansas's law mirrors many federal exemptions and adds its own. Categories that are commonly exempt or treated differently include:

• Bona fide executive, administrative, and professional employees (the "white-collar" exemptions).
• Certain agricultural workers and some seasonal employees.
• Independent contractors, who are not "employees" at all (misclassification is a frequent source of wage disputes).
• Some student learners, apprentices, and full-time students under specific certificated programs that allow a subminimum wage.
• Workers covered by other specific statutory carve-outs in the Arkansas Minimum Wage Act.

Exemption rules are technical and depend on actual job duties and pay structure, not just a job title. If you are unsure whether an exemption applies, verify it against the statute or with the labor agency before assuming you are not owed minimum wage.

Local minimum wages: Arkansas preempts them

Unlike states such as California or New York, Arkansas does not permit cities or counties to set their own higher minimum wage. State law preempts local wage-setting, meaning municipalities and counties cannot enact a local minimum wage that exceeds the state rate. As a practical matter, the $11.00 statewide rate applies uniformly across Arkansas, from Little Rock to Fayetteville to rural counties. Do not expect a separate city or county minimum wage in Arkansas.

How to enforce your right to minimum wage

If you believe you have been paid less than Arkansas's minimum wage, or that an employer improperly applied the tip credit, you have options:

• Keep records. Save pay stubs, time records, schedules, and any notes on tips received. Documentation is the backbone of any wage claim.
• File a wage claim with the Arkansas Department of Labor and Licensing, Labor Standards Division, which administers and enforces the Arkansas Minimum Wage Act.
• Consider a private lawsuit. The Arkansas Minimum Wage Act allows employees to recover unpaid wages, and remedies can include additional liquidated (double) damages plus costs and attorney's fees. There is a limited time window to bring a claim, so do not wait.
• Federal route. Because the federal FLSA may also cover you, you can alternatively file with the U.S. Department of Labor's Wage and Hour Division, though for Arkansas workers the higher state rate usually makes a state claim more valuable.

Retaliation against an employee for asserting wage rights is prohibited. If you are fired, demoted, or otherwise punished for raising a minimum-wage complaint, that may be a separate violation.

Where to confirm the current rate

The minimum wage and the tipped cash wage are the kind of figures that can change with new legislation or a future ballot initiative. Before you rely on a specific number, confirm it directly with the Arkansas Department of Labor and Licensing (the state's labor and workforce agency, which houses the Labor Standards Division). The agency publishes the current minimum wage, the tipped cash wage, and required workplace posters. For federal questions, the U.S. Department of Labor's Wage and Hour Division is the authoritative source for the FLSA's $7.25 baseline and $2.13 federal tipped wage. When state and federal rules differ, Arkansas workers are entitled to whichever standard is more protective.

Official Arkansas Sources

This page is based on Arkansas employment law. Rules and figures change — verify the current details directly with the official Arkansas sources below. This is general legal information, not legal advice.

• Arkansas Department of Labor and Licensing — official Arkansas agency.
• Wage Claims - Arkansas Department of Labor and Licensing, Labor Standards Division

Federal law and local ordinances may also apply. Federal laws like the Fair Labor Standards Act set a national floor, and your city or county may add protections (such as a higher local minimum wage or paid sick leave). Check both alongside Arkansas state law.