Main Line: 479.443.2705
Fax Line: 479.443.2718
Email: info@rmp.law
Bentonville – 479-553-9800
Jonesboro – 870-394-5200
Little Rock – 501-954-9000
Main Line: 479.443.2705
Fax Line: 479.443.2718
Email: info@rmp.law
Bentonville – 479-553-9800
Jonesboro – 870-394-5200
Little Rock – 501-954-9000
Arkansas tax rules continue to shift, and what you can deduct in 2026 may look different than you expect. From individual write-offs to business-related deductions, small changes in the law can have a real impact on what stays in your pocket. This guide breaks down the Arkansas tax deductions worth paying attention to now, so you can plan ahead and avoid costly surprises later.
On Tuesday, the Federal Trade Commission issued a new Rule putting an end to employment-related non-compete clauses. In its justification for the rule, the FTC called non-compete clauses “an unfair method of competition” and stated it is a “violation for [employers] to… enter into non-compete clauses (“non-competes”) with workers.” In today’s very competitive labor market, the new FTC Rule creates a significant disruption for employers.
This new FTC provision—set to take effect in 120 days—renders existing non-compete agreements unenforceable. Existing non-compete agreements with senior executives will remain enforceable, although employers cannot require newly hired senior executives to sign such an agreement.
After the Rule takes effect, employers are required to deliver personal notice to employees (past and present) who signed a non-compete agreement informing them agreements are no longer enforceable. In the notice, employers must inform employees they are free to accept any job or start any business, even if it is directly competitive with the employer.
Compliance with the FTC Rule is not optional. Employers should consider new ways they can protect against a former employee gaining a competitive advantage by using the employer- provided training, the relationships made possible by the employer, or the confidential information learned from the employer. RMP can assist you in navigating this disruption and can provide advice on how to most effectively protect your vital business interests going forward.
RMP Attorneys At Law has an experienced Employment Law Attorney team dedicated to helping you navigate these changes. If you have any questions or would like guidance, reach out to one of our employment attorneys, Tim Hutchinson, Seth Haines, Larry McCredy, or Taylor Baltz or call 479.443.2705.
If you are hiring employees in Arkansas this summer, understanding basic employment laws can help you avoid costly mistakes. This guide covers who counts as an employee, key wage-and-hour rules, youth labor restrictions, onboarding basics, and practical compliance tips.
Hiring tends to pick up as summer approaches. Whether you are bringing on seasonal help or expanding your team permanently, it is easy to overlook legal requirements in the rush to fill positions. Small missteps can lead to wage claims, penalties, or disputes later. A clear understanding of Arkansas employment laws can help you protect your business from the start.
Under federal and Arkansas law, an employee is generally described as someone who performs services under the direction and control of an employer and is economically dependent on that employer rather than in business for themselves. This distinction matters because employees are entitled to certain protections that non-employees are not. Importantly, this includes protections under wage-and-hour and workers’ compensation laws.
Misclassifying workers can lead to liability for:
Tip: If you control how, when, and where the work is done, the worker is likely an employee.
There is no single test for determining who is an employee. The distinction between an employee and an independent contractor is not based on what you call the worker in an agreement. Under Arkansas and federal law, the focus is on how the working relationship actually functions in practice—in other words, the “economic reality” of the relationship.
Courts and agencies typically look at the level of control you have over the worker. If you control the details of how the work is performed, such as setting hours, requiring specific methods, providing tools, or closely supervising the process, the worker is more likely to be considered an employee. Independent contractors, on the other hand, usually operate their own business independently, set their own schedules, use their own equipment, and take on the risk of profit or loss. Other factors may include whether the work is a core part of your business, whether the relationship is ongoing, and whether the worker can take on other clients.
Different laws apply different multi-factor tests, but generally, no single factor decides the issue. Instead, all relevant circumstances should be carefully considered and reevaluated regularly because misclassification can lead to liability for unpaid wages, back taxes, and penalties.
Arkansas follows core federal wage-and-hour concepts but adds several state-specific requirements that often catch seasonal employers by surprise.
Arkansas minimum wage is $11.00 per hour, which is higher than the federal minimum wage of $7.25. When both federal and state wage laws apply, you must pay the higher applicable rate. The Arkansas Minimum Wage Act generally covers employers with four or more employees in any workweek. Covered employers must post the Arkansas Minimum Wage and Overtime notice and maintain required payroll records.
Arkansas permits a tip credit. The minimum cash wage for a tipped employee is $2.63 per hour, provided the employee’s tips make up the difference to at least $11.00 per hour. The employer must make up any shortfall, calculated on a weekly basis. Accurate tip and hours records are essential and are the employer’s responsibility. Failure to maintain such records will preclude the employer from benefiting from this credit.
Non-exempt employees must receive overtime pay for hours worked over 40 in a workweek. Overtime pay is calculated at a rate not less than one and one-half (1 1/2) times the regular rate of pay at which he or she is employed. The regular rate of pay generally includes any non-discretionary bonuses, commissions, weekend pay, and holiday pay. Calculating the regular rate of pay is often more involved than employers realize, but it is imperative to ensure compliance.
Covered Arkansas employers must keep payroll records for at least three years, including hours worked each workday and workweek, basis of pay, straight-time and overtime earnings, additions or deductions, and total wages paid each pay period. Covered employers must also post the state’s minimum wage/overtime notice in a conspicuous place where employees can readily see it. Practical Tip: These notices are available for download for free at https://labor.arkansas.gov/resources/required-postings/.
Arkansas employers must report newly hired or rehired employees to the Arkansas New Hire Reporting Center generally within 20 days of the hire date. Make sure you have systems in place to make these required filings on time before peak hiring season.
All employers must complete Form I‑9 for each new hire to verify identity and work authorization.
Why this matters: Failing to follow these basics can trigger audits, fines, or employee claims.
Hiring minors is common during the summer, but employers should pay close attention to special laws surrounding minor employees.
Arkansas eliminated state work permits for minors under 16 effective August 1, 2023, so you no longer need to obtain a state employment certificate for most minors. However, all federal and state restrictions on hours and prohibited occupations remain in full effect.
Children under 16 face strict limits on daily and weekly hours and on times of day they may work. As a general rule, they may not work before 6:00 a.m. or after 7:00 p.m., with a limited evening extension to 9:00 p.m. on nights that do not precede a school day. They also generally cannot work more than 8 hours per day or 48 hours per week.
Children who are 16 have fewer hour restrictions than younger minors but still face curfews late at night and maximums on daily and weekly hours. They generally may not work before 6:00 a.m. or after 11:00 p.m. on nights preceding a school day, with a limited evening extension to 12:00 midnight on nights that do not precede a school day. There is an additional morning extension allowing children who are 16 or older to work from 12:00 midnight to 6:00 a.m. on nights preceding non-school days except for children working in certain listed occupations. Additionally, they generally cannot work more than 10 hours per day or more than 54 hours per week.
Under Arkansas law, children under age 16 are restricted from working in certain jobs that have been determined by the Arkansas General Assembly to be hazardous, including jobs such as manufacturing, mining, and operating most power-driven machinery. Additionally, under age 18, they may not work in occupations declared hazardous by federal law.
Employers who employ children younger than 17 must maintain certain documentation in addition to that otherwise required under applicable wage and hour laws.
Tip: Always confirm age and understand applicable job restrictions before scheduling minors to work and assigning duties. Keep documentation to demonstrate compliance with applicable law.
New business owners have a lot to learn in the employment law area to ensure their business gets started on the right foot, but even experienced business owners can run into issues. Some of the most common problems include:
Why this matters: These mistakes often surface as secondary issues during unrelated disputes with current or former employees, not at the time of hiring. Ensuring compliant practices from the start helps avoid giving added ammunition to the other side in later disputes.
You should consider speaking with an attorney if:
Early guidance from an attorney can help you avoid larger problems later.
Hiring should help your business grow, not create legal risk. If you have questions about Arkansas employment laws or want help reviewing your hiring practices, the attorneys at RMP Law can help. Contact RMP Law at 479-443-2705 or use our Message Us form.
Main RMP Number: 479-443-2705
Bentonville – 479-553-9800
Jonesboro – 870-394-5200
Little Rock – 501-954-9000
DISCLAIMER: The information provided on this website does not constitute legal advice. Instead, all information, content, and materials available on this site are for general informational purposes. Information on this website may not constitute the most up-to-date legal or other information. Readers of this website should contact their attorney to obtain advice with respect to any particular legal matter.
If you are hiring employees in Arkansas this summer, understanding basic employment laws can help you avoid costly mistakes. This guide covers who counts as an employee, key wage-and-hour rules, youth labor restrictions, onboarding basics, and practical compliance tips.
Hiring tends to pick up as summer approaches. Whether you are bringing on seasonal help or expanding your team permanently, it is easy to overlook legal requirements in the rush to fill positions. Small missteps can lead to wage claims, penalties, or disputes later. A clear understanding of Arkansas employment laws can help you protect your business from the start.
Under federal and Arkansas law, an employee is generally described as someone who performs services under the direction and control of an employer and is economically dependent on that employer rather than in business for themselves. This distinction matters because employees are entitled to certain protections that non-employees are not. Importantly, this includes protections under wage-and-hour and workers’ compensation laws.
Misclassifying workers can lead to liability for:
Tip: If you control how, when, and where the work is done, the worker is likely an employee.
There is no single test for determining who is an employee. The distinction between an employee and an independent contractor is not based on what you call the worker in an agreement. Under Arkansas and federal law, the focus is on how the working relationship actually functions in practice—in other words, the “economic reality” of the relationship.
Courts and agencies typically look at the level of control you have over the worker. If you control the details of how the work is performed, such as setting hours, requiring specific methods, providing tools, or closely supervising the process, the worker is more likely to be considered an employee. Independent contractors, on the other hand, usually operate their own business independently, set their own schedules, use their own equipment, and take on the risk of profit or loss. Other factors may include whether the work is a core part of your business, whether the relationship is ongoing, and whether the worker can take on other clients.
Different laws apply different multi-factor tests, but generally, no single factor decides the issue. Instead, all relevant circumstances should be carefully considered and reevaluated regularly because misclassification can lead to liability for unpaid wages, back taxes, and penalties.
Arkansas follows core federal wage-and-hour concepts but adds several state-specific requirements that often catch seasonal employers by surprise.
Arkansas minimum wage is $11.00 per hour, which is higher than the federal minimum wage of $7.25. When both federal and state wage laws apply, you must pay the higher applicable rate. The Arkansas Minimum Wage Act generally covers employers with four or more employees in any workweek. Covered employers must post the Arkansas Minimum Wage and Overtime notice and maintain required payroll records.
Arkansas permits a tip credit. The minimum cash wage for a tipped employee is $2.63 per hour, provided the employee’s tips make up the difference to at least $11.00 per hour. The employer must make up any shortfall, calculated on a weekly basis. Accurate tip and hours records are essential and are the employer’s responsibility. Failure to maintain such records will preclude the employer from benefiting from this credit.
Non-exempt employees must receive overtime pay for hours worked over 40 in a workweek. Overtime pay is calculated at a rate not less than one and one-half (1 1/2) times the regular rate of pay at which he or she is employed. The regular rate of pay generally includes any non-discretionary bonuses, commissions, weekend pay, and holiday pay. Calculating the regular rate of pay is often more involved than employers realize, but it is imperative to ensure compliance.
Covered Arkansas employers must keep payroll records for at least three years, including hours worked each workday and workweek, basis of pay, straight-time and overtime earnings, additions or deductions, and total wages paid each pay period. Covered employers must also post the state’s minimum wage/overtime notice in a conspicuous place where employees can readily see it. Practical Tip: These notices are available for download for free at https://labor.arkansas.gov/resources/required-postings/.
Arkansas employers must report newly hired or rehired employees to the Arkansas New Hire Reporting Center generally within 20 days of the hire date. Make sure you have systems in place to make these required filings on time before peak hiring season.
All employers must complete Form I‑9 for each new hire to verify identity and work authorization.
Why this matters: Failing to follow these basics can trigger audits, fines, or employee claims.
Hiring minors is common during the summer, but employers should pay close attention to special laws surrounding minor employees.
Arkansas eliminated state work permits for minors under 16 effective August 1, 2023, so you no longer need to obtain a state employment certificate for most minors. However, all federal and state restrictions on hours and prohibited occupations remain in full effect.
Children under 16 face strict limits on daily and weekly hours and on times of day they may work. As a general rule, they may not work before 6:00 a.m. or after 7:00 p.m., with a limited evening extension to 9:00 p.m. on nights that do not precede a school day. They also generally cannot work more than 8 hours per day or 48 hours per week.
Children who are 16 have fewer hour restrictions than younger minors but still face curfews late at night and maximums on daily and weekly hours. They generally may not work before 6:00 a.m. or after 11:00 p.m. on nights preceding a school day, with a limited evening extension to 12:00 midnight on nights that do not precede a school day. There is an additional morning extension allowing children who are 16 or older to work from 12:00 midnight to 6:00 a.m. on nights preceding non-school days except for children working in certain listed occupations. Additionally, they generally cannot work more than 10 hours per day or more than 54 hours per week.
Under Arkansas law, children under age 16 are restricted from working in certain jobs that have been determined by the Arkansas General Assembly to be hazardous, including jobs such as manufacturing, mining, and operating most power-driven machinery. Additionally, under age 18, they may not work in occupations declared hazardous by federal law.
Employers who employ children younger than 17 must maintain certain documentation in addition to that otherwise required under applicable wage and hour laws.
Tip: Always confirm age and understand applicable job restrictions before scheduling minors to work and assigning duties. Keep documentation to demonstrate compliance with applicable law.
New business owners have a lot to learn in the employment law area to ensure their business gets started on the right foot, but even experienced business owners can run into issues. Some of the most common problems include:
Why this matters: These mistakes often surface as secondary issues during unrelated disputes with current or former employees, not at the time of hiring. Ensuring compliant practices from the start helps avoid giving added ammunition to the other side in later disputes.
You should consider speaking with an attorney if:
Early guidance from an attorney can help you avoid larger problems later.
Hiring should help your business grow, not create legal risk. If you have questions about Arkansas employment laws or want help reviewing your hiring practices, the attorneys at RMP Law can help. Contact RMP Law at 479-443-2705 or use our Message Us form.
Main RMP Number: 479-443-2705
Bentonville – 479-553-9800
Jonesboro – 870-394-5200
Little Rock – 501-954-9000
DISCLAIMER: The information provided on this website does not constitute legal advice. Instead, all information, content, and materials available on this site are for general informational purposes. Information on this website may not constitute the most up-to-date legal or other information. Readers of this website should contact their attorney to obtain advice with respect to any particular legal matter.
Main Line: 479.443.2705
Fax Line: 479.443.2718
Email: info@rmp.law
Bentonville – 479-553-9800
Jonesboro – 870-394-5200
Little Rock – 501-954-9000
JOHNSON
5519 Hackett Street, Suite 300
Springdale, AR 72762
BENTONVILLE
809 SW A Street, Suite 105
Bentonville, AR 72712
JONESBORO
710 Windover Road, Suite B
Jonesboro, AR 72401
LITTLE ROCK
17901 Chenal Parkway, Suite 200
Little Rock, AR 72223