- Arkansas pay rules at a glance
- The 4-employee threshold
- How tipped pay works
- Deductions that can't cut below the minimum
- Overtime counts actual hours
- Wage claims in Arkansas
- How the rate got here
- Arkansas and its neighbours
- Paydays
- Where federal law still reaches in
- Questions to settle before you hire in Arkansas
- My verdict
- Frequently asked questions
The minimum wage in Arkansas is $11.00 an hour as of October 2026, and it has been since January 1, 2021. The state law covers employers with 4 or more employees, and tipped staff must get at least $2.63 an hour in cash from the employer, with tips making up the rest.
Arkansas voters passed the increase in November 2018, and the Arkansas Department of Labor and Licensing enforces it. This page draws on the department's minimum wage and wage claims pages and the U.S. Department of Labor's state, tipped, payday and history tables, all read in October 2026.
Arkansas pay rules at a glance
| Rule | Arkansas (as of October 2026) |
|---|---|
| Minimum wage | $11.00 an hour |
| Minimum cash wage for tipped staff | $2.63 an hour |
| Maximum tip credit | $8.37 an hour |
| Who's covered | Employers with 4 or more employees |
| Overtime | Time and a half after 40 hours in a workweek |
The 4-employee threshold
The department says the Arkansas Minimum Wage Act covers employers with 4 or more employees. Businesses covered by the federal Fair Labor Standards Act are also covered by the state law once they have 4 or more employees, and an employer covered by both laws must pay the higher rate, which in Arkansas is the state's $11.00.
A very small business with fewer than 4 staff falls outside the state law but may still owe the federal $7.25 if the federal law reaches it. My federal minimum wage guide explains when that happens.
How tipped pay works
Arkansas lets employers count tips toward the minimum, but the cash floor of $2.63 is higher than the federal $2.13. The department puts the burden squarely on the employer: if tips don't bring the employee up to $11.00 an hour, the employer has to add the difference, and it's the employer's job to keep accurate tip records.
- Pay every tipped employee at least $2.63 an hour in cash.
- Record each employee's tips for every pay period.
- Check that cash wage plus tips reaches $11.00 for every hour worked.
- Top up any shortfall in the same pay period.
Deductions that can't cut below the minimum
This is the rule small employers trip over. The department says non-standard deductions generally can't take an employee below the minimum wage for the workweek. Its examples include spoilage or breakage, cash or stock shortages, and fines for lateness, misconduct or quitting without notice. A till shortfall taken from a minimum wage worker's pay is the classic breach.
Overtime counts actual hours
Overtime is one and a half times the regular rate for non-exempt staff after 40 hours worked in a workweek. The department points out that a long day alone doesn't trigger it, and that paid holidays or sick days don't count as hours worked for overtime. Only public agencies can give compensatory time off instead of overtime pay. My overtime laws guide covers the exemptions.
Wage claims in Arkansas
If wages go unpaid, the department's Labor Standards Section investigates wage claims of $2000 or less, whether the worker was an employee or an independent contractor who did the work. A claim is closed if it turns out to be over $2000 or the worker earns more than $50,000 a year. You can't split one debt between a wage claim and a court case, and claims for vacation, sick, holiday, bonus or severance pay need a copy of the company policy that promises it.
How the rate got here
| Year (1 January) | Arkansas rate |
|---|---|
| 2015 | $7.50 |
| 2016 | $8.00 |
| 2017 | $8.50 |
| 2019 | $9.25 |
| 2020 | $10.00 |
| 2021 to October 2026 | $11.00 |
Oklahoma sits on the federal rate and adds a small-employer rate of its own, as our Oklahoma minimum wage page explains.
Arkansas and its neighbours
| State | Basic minimum wage (as of October 2026) |
|---|---|
| Arkansas | $11.00 |
| Missouri | $15.00 |
| Oklahoma | $7.25 |
| Texas | $7.25 |
| Tennessee | No state law, federal $7.25 |
| Mississippi | No state law, federal $7.25 |
Arkansas pays more than every neighbour in that table except Missouri. A business that hires on both sides of the Texas line runs two different pay floors, and my Missouri minimum wage guide covers the one state nearby that pays more.
Paydays
The U.S. Department of Labor's payday table lists Arkansas under semi-monthly paydays. A monthly payroll for hourly staff isn't the safe choice.
Where federal law still reaches in
Arkansas law sits alongside the federal Fair Labor Standards Act. The Department of Labor's reference guide says an enterprise is covered federally if it has annual sales or business of not less than $500,000, or runs a hospital, a care home or a school. Individual staff can be covered even in a smaller firm if their own work involves interstate commerce, such as handling goods from other states or regular out-of-state calls.
The federal guide also allows a youth rate of $4.25 for workers under 20 in their first 90 consecutive calendar days, and it bans pushing out existing staff to hire at that rate. The department's own page mentions an application for a reduced minimum wage for students, so check that route before paying any Arkansas student less than $11.00.
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Questions to settle before you hire in Arkansas
- Will you have 4 or more employees, counting part-time staff?
- Does any role earn tips, and do you have a tip record system?
- Are any deductions in your handbook that could take pay below $11.00?
- Is payroll set up for at least twice-monthly paydays?
Across the Mississippi River, the state of the same name has no wage law of its own, so the federal rate applies, as the Mississippi minimum wage guide shows.
My verdict
Arkansas is a middle-wage state with a clear rule set: $11.00 an hour, a $2.63 tipped cash floor, and coverage from the fourth employee. The trap is in deductions, because a breakage or shortage charge that drops pay below $11.00 breaks the law even when the base rate is right. Keep tip records and leave deductions out of minimum wage pay.
Frequently asked questions
What is the minimum wage in Arkansas?
It's $11.00 an hour as of October 2026, in place since January 1, 2021.
What is the tipped minimum wage in Arkansas?
Tipped staff must be paid at least $2.63 an hour in cash, with tips bringing the total to $11.00.
Who does the Arkansas minimum wage cover?
The Arkansas Minimum Wage Act covers employers with 4 or more employees.
Can an Arkansas employer deduct breakages from pay?
Not if it takes pay below the minimum wage for the week. The department lists breakage, shortages and fines as examples.
Does Arkansas have daily overtime?
No. Overtime is time and a half after 40 hours worked in a workweek.
How much can I claim through the Arkansas wage claim process?
The Labor Standards Section handles wage claims of $2000 or less.
When did Arkansas voters raise the minimum wage?
Arkansas voters passed the increase in November 2018, reaching $11.00 in 2021.
How often must Arkansas employers pay?
The U.S. Department of Labor's payday table lists Arkansas under semi-monthly paydays.
