August 12, 2025

Arkansas Minimum Wage: What You Need to Know This Year

Article Summary:

Learn what Arkansas employers need to know about the 2025 minimum wage law, including rates, exceptions, overtime, and compliance tips to avoid penalties.



Legal Topics

EMPLOYMENT LAW UPDATE: FEDERAL TRADE COMMISSION ELIMINATES NON-COMPETE CLAUSES

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.

WHEN IS THE FTC ELIMINATION OF NON-COMPETE CLAUSES SET TO TAKE EFFECT?

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.

WHAT REQUIREMENTS HAS THE FTC IMPOSED ON EMPLOYERS BY ELIMINATING NON-COMPETE CLAUSES?

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.

IS THE FTC’S ELIMINATION OF THE NON-COMPETE CLAUSES OPTIONAL FOR EMPLOYERS?

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: Your Employment Law Attorneys

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’re an employer in Arkansas, it’s essential to stay up to date with current wage laws. Not following the correct rules could lead to fines, penalties, or even lawsuits. In this blog, we’ll break down everything you need to know about the Arkansas Minimum Wage in 2025 and how to stay compliant.

A calendar with a bold red check mark on the 15 to indicate payday. with two W-2 forms, with a pay laying over the forms to depict Arkansas Minimum Wage Law.

What Is the Arkansas Minimum Wage in 2025?

As of January 1, 2025, the Arkansas Minimum Wage remains $11.00 per hour. This wage rate has been in place since 2021, following a series of increases approved by voters through Initiated Act 5 of 2018.

You can read more about Arkansas’s wage laws through the Arkansas Division of Labor’s website.

Even though the federal minimum wage is $7.25 per hour, Arkansas employers must pay the higher state minimum wage of $11.00.

For more on federal wage rules, visit the U.S. Department of Labor.

Who Is Covered Under the Arkansas Minimum Wage Law?

The Arkansas Minimum Wage Act generally covers employers who employ four (4) or more employees. Therefore, many employees in Arkansas are covered under the state’s minimum wage law, but there are a few exceptions to the general rule that an employer must pay its employees at least $11.00 per hour:

  • Tipped employees: Employers are entitled to an allowance for tips that are actually paid to an employee, and such allowance counts towards the employer’s Arkansas Minimum Wage obligations. As a result, employers may pay tipped workers a base wage of $2.63 per hour, as long as tips bring their total earnings up to at least $11.00 per hour.
  • Certain student workers or apprentices may be paid less under specific conditions. For example, full-time students attending an accredited school in this state may be paid 85% of the Arkansas Minimum Wage if the hours they work per week do not exceed certain thresholds.
Waitress preparing coffee must earn at least $11 per hour according to the Arkansas Minimum Wage law.

Record-keeping and Overtime Under the Arkansas Minimum Wage Law

Employers must keep accurate payroll records containing certain information required by the Arkansas Division of Labor pursuant to the Administrative Rules Regarding the Arkansas Minimum Wage Act, including the hours worked and wages paid per pay period to each employee. These records should be kept for at least three years.Additionally, non-exempt employees must generally receive overtime pay, calculated as one and one-half (1 ½) times, or 150% of, their regular rate, for all hours worked over 40 hours per week, in line with the Fair Labor Standards Act (FLSA). More on that here: FLSA Overview.

What About Independent Contractors?

If you hire independent contractors, be cautious. Misclassifying workers to avoid paying minimum wage or overtime can lead to audits and fines. The Arkansas Division of Labor provides guidance on proper classification in the Administrative Rules Regarding the Arkansas Minimum Wage Act.


Contact RMP Law Today

Main RMP Number: 479-443-2705

Bentonville – 479-553-9800
Jonesboro – 870-394-5200
Little Rock – 501-954-9000

Message Us


Penalties for Non-Compliance

Failing to comply with Arkansas minimum wage laws can result in:

  • Back pay owed to employees
  • Additional damages owed to employees if the employer’s violation is willful
  • Fines and penalties from the state government
  • Legal action and damage to your business’s reputation

To avoid these issues, it’s best to review your payroll policies regularly and consult a qualified employment attorney if you have questions.

Why Compliance with Arkansas Minimum Wage Laws Matters for Your Business

Understanding and following the Arkansas Minimum Wage laws in 2025 isn’t just about technical compliance—it’s about protecting your reputation and your relationships with your employees by ensuring you have sustainable payroll and employment practices that satisfy applicable law. If you have any questions or need help reviewing your employment practices, reach out to an RMP employment law attorney or the Arkansas Department of Labor.

Contact RMP Law today to schedule a consultation and start building a plan that gives you clarity, confidence, and peace of mind for the future.

Let RMP Law be your trusted legal partner, providing the guidance and advocacy you need to succeed. Contact us today! 

Main RMP Number: 479-443-2705


RMP Business Law Attorney Arkansas

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 only. 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’re an employer in Arkansas, it’s essential to stay up to date with current wage laws. Not following the correct rules could lead to fines, penalties, or even lawsuits. In this blog, we’ll break down everything you need to know about the Arkansas Minimum Wage in 2025 and how to stay compliant.

A calendar with a bold red check mark on the 15 to indicate payday. with two W-2 forms, with a pay laying over the forms to depict Arkansas Minimum Wage Law.

What Is the Arkansas Minimum Wage in 2025?

As of January 1, 2025, the Arkansas Minimum Wage remains $11.00 per hour. This wage rate has been in place since 2021, following a series of increases approved by voters through Initiated Act 5 of 2018.

You can read more about Arkansas’s wage laws through the Arkansas Division of Labor’s website.

Even though the federal minimum wage is $7.25 per hour, Arkansas employers must pay the higher state minimum wage of $11.00.

For more on federal wage rules, visit the U.S. Department of Labor.

Who Is Covered Under the Arkansas Minimum Wage Law?

The Arkansas Minimum Wage Act generally covers employers who employ four (4) or more employees. Therefore, many employees in Arkansas are covered under the state’s minimum wage law, but there are a few exceptions to the general rule that an employer must pay its employees at least $11.00 per hour:

  • Tipped employees: Employers are entitled to an allowance for tips that are actually paid to an employee, and such allowance counts towards the employer’s Arkansas Minimum Wage obligations. As a result, employers may pay tipped workers a base wage of $2.63 per hour, as long as tips bring their total earnings up to at least $11.00 per hour.
  • Certain student workers or apprentices may be paid less under specific conditions. For example, full-time students attending an accredited school in this state may be paid 85% of the Arkansas Minimum Wage if the hours they work per week do not exceed certain thresholds.
Waitress preparing coffee must earn at least $11 per hour according to the Arkansas Minimum Wage law.

Record-keeping and Overtime Under the Arkansas Minimum Wage Law

Employers must keep accurate payroll records containing certain information required by the Arkansas Division of Labor pursuant to the Administrative Rules Regarding the Arkansas Minimum Wage Act, including the hours worked and wages paid per pay period to each employee. These records should be kept for at least three years.Additionally, non-exempt employees must generally receive overtime pay, calculated as one and one-half (1 ½) times, or 150% of, their regular rate, for all hours worked over 40 hours per week, in line with the Fair Labor Standards Act (FLSA). More on that here: FLSA Overview.

What About Independent Contractors?

If you hire independent contractors, be cautious. Misclassifying workers to avoid paying minimum wage or overtime can lead to audits and fines. The Arkansas Division of Labor provides guidance on proper classification in the Administrative Rules Regarding the Arkansas Minimum Wage Act.


Contact RMP Law Today

Main RMP Number: 479-443-2705

Bentonville – 479-553-9800
Jonesboro – 870-394-5200
Little Rock – 501-954-9000

Message Us


Penalties for Non-Compliance

Failing to comply with Arkansas minimum wage laws can result in:

  • Back pay owed to employees
  • Additional damages owed to employees if the employer’s violation is willful
  • Fines and penalties from the state government
  • Legal action and damage to your business’s reputation

To avoid these issues, it’s best to review your payroll policies regularly and consult a qualified employment attorney if you have questions.

Why Compliance with Arkansas Minimum Wage Laws Matters for Your Business

Understanding and following the Arkansas Minimum Wage laws in 2025 isn’t just about technical compliance—it’s about protecting your reputation and your relationships with your employees by ensuring you have sustainable payroll and employment practices that satisfy applicable law. If you have any questions or need help reviewing your employment practices, reach out to an RMP employment law attorney or the Arkansas Department of Labor.

Contact RMP Law today to schedule a consultation and start building a plan that gives you clarity, confidence, and peace of mind for the future.

Let RMP Law be your trusted legal partner, providing the guidance and advocacy you need to succeed. Contact us today! 

Main RMP Number: 479-443-2705


RMP Business Law Attorney Arkansas

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 only. 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.


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Jonesboro, AR 72401

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Little Rock, AR 72212

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