Arkansas?s New Minimum Wage Law

July 10th, 2006 Posted by John

Here is some new information from the Arkansas Department of Labor. I figured I would get this jotted down for you all as quickly as I can. Currently, as of date above, the Arkansas minimum wage is at federal standard of $5.15 an hour.

However, beginning in October of 2006, it will increase to $6.25 an hour for all employers employing more than four people. This new law also includes a slight change for allowances of gratuity, such as those who are waiters/waitresses or bartenders. At the $5.15 level, it was allowed to decrease pay up to 50%, or on federal level to $2.13 an hour. Now pay for those who receive gratuity, (tips) it is required that they must be paid 58% of the new minimum wage.

It is required under the new law, as the case for some minimum wage increases, that employers keep log of all of their employee’s pay rates and checks for three years. (See below*)

There is one more notable clause in this new law. It is called the 85% provision. It states that student employee’s who work no more than 20 hours a week while school is in session and no more than 40 hours when school is not, may be paid 85% of minimum wage, providing they are paid equally in proportion to their fellow employees. This is all providing that the student meets eligibility requirements and has a certificate of student eligibility from Arkansas Dept. of Labor.

The Arkansas Complete Labor Law poster details all of the minimum wage requirements as well as reflects all the federal and Arkansas state laws. The updated posting is currently available.

*All employers subject to the Minimum Wage Law must keep accurate records for a period of three (3) years. These records must include the name, address, occupation, rate of pay, hours worked and the amount paid each pay period for all employees covered by the law.

 

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