Arkansas Minimum Wage 2026: $11.00 per Hour, Tipped Wage $2.63
Arkansas minimum wage is $11.00 per hour for employers with four or more employees, unchanged since January 1, 2021. Tipped cash wage $2.63 with an $8.37 tip credit. No increase is scheduled.
The Arkansas minimum wage is $11.00 per hour. It reached that level on January 1, 2021 as the last step of Issue 5, the ballot measure voters approved in 2018, and it has not changed since. The Arkansas Minimum Wage Act covers employers with four or more employees; smaller employers fall under the federal $7.25 rate unless the federal law also exempts them. Tipped employees may be paid a cash wage of $2.63 per hour as long as tips bring them to $11.00. There is no scheduled increase and no inflation indexing in Arkansas law.
- Arkansas pays $11.00 per hour, $3.75 above the federal minimum, unchanged since 2021
- The state law covers employers with four or more employees; the federal rate covers the rest
- Tipped cash wage is $2.63 with a maximum tip credit of $8.37
- Full-time students may be paid a reduced rate with state approval
- No city or county in Arkansas may set its own minimum wage
Current Arkansas Minimum Wage
The Arkansas Department of Labor and Licensing's Labor Standards Division enforces the Arkansas Minimum Wage Act (Arkansas Code section 11-4-201 and following). The department states that effective January 1, 2021 the minimum wage in Arkansas is $11.00 per hour, and that the Act covers employers with 4 or more employees.
Issue 5 raised the rate in three steps: $9.25 on January 1, 2019, $10.00 on January 1, 2020 and $11.00 on January 1, 2021. Nothing in the measure or in later legislation schedules a further increase, and Arkansas does not index the rate to inflation. The US Department of Labor's July 1, 2026 table lists Arkansas at $11.00.
Arkansas Minimum Wage vs Federal Minimum Wage
| Rate | Amount | Who it covers |
|---|---|---|
| Arkansas minimum wage | $11.00 per hour | Employers with 4 or more employees |
| Federal minimum wage | $7.25 per hour | Employers covered by the FLSA, including most with fewer than 4 employees |
| Arkansas tipped cash wage | $2.63 per hour | Tipped employees of covered employers |
| Federal tipped cash wage | $2.13 per hour | Tipped employees under federal rules |
An Arkansas business with three employees that is covered by the federal Fair Labor Standards Act must pay $7.25; one with four or more must pay $11.00. Most businesses that handle goods in interstate commerce or have $500,000 in annual sales are covered by the federal law even when tiny, so few workers fall outside both laws. Compare Arkansas with its neighbors in our minimum wage by state table; Missouri to the north pays $15.00, while Texas, Oklahoma, Louisiana, Mississippi and Tennessee sit at the federal $7.25.
Tipped Minimum Wage in Arkansas
The US Department of Labor's tipped wage table lists Arkansas at a $2.63 cash wage with a maximum tip credit of $8.37. The employer may count tips toward the minimum wage, but if an employee's cash wage plus tips does not average $11.00 per hour in a workweek, the employer pays the difference. Tips are the employee's property; the employer may not keep them, though valid tip pools among tipped staff are allowed.
The $2.63 figure has been in place since the state rate reached $11.00, and it is 50 cents above the federal cash wage of $2.13.
Arkansas Minimum Wage Increase Schedule
| Effective date | Rate | Source |
|---|---|---|
| January 1, 2017 | $8.50 | 2014 ballot measure, final step |
| January 1, 2019 | $9.25 | Issue 5 (2018) |
| January 1, 2020 | $10.00 | Issue 5 (2018) |
| January 1, 2021 | $11.00 | Issue 5 (2018) |
| 2022 through 2026 | $11.00 | No change |
No future increase is scheduled. Raising the rate would require either a new ballot initiative or an act of the General Assembly. The NCSL summary lists Arkansas among states with indexed increases; the Arkansas Department of Labor and Licensing page does not describe any indexing, and the rate has stayed at $11.00 for six years, so employers should treat the rate as fixed until the state announces otherwise.
Local Minimum Wages in Arkansas
Arkansas preempts local minimum wage ordinances. Little Rock, Fayetteville, Fort Smith and every other city and county follow the statewide $11.00 rate, so multi-location employers can use a single rate across the state.
Who Is Covered and Who Is Exempt
The Arkansas Minimum Wage Act applies to employers with four or more employees. Exemptions include bona fide executive, administrative and professional employees under the duties tests, outside sales staff, certain agricultural workers, some nonprofit and religious organization staff, and a few others listed in the statute. Arkansas also allows a reduced rate for full-time students with an application to the department; the department's site references an Application for Reduced Minimum Wage for Students, and employers should confirm the current permitted percentage and hour limits before using it. Our guide to exempt vs non-exempt employees covers the classification tests.
Overtime and the Minimum Wage
Arkansas requires time and a half for hours worked over 40 in a workweek, matching federal law, with no daily overtime rule. A minimum wage worker who works 45 hours earns 40 hours at $11.00 ($440.00) plus 5 overtime hours at $16.50 ($82.50), for $522.50 gross.
Use our overtime calculator for any rate and see our guide to overtime pay laws by state for the surrounding states.
What a Minimum Wage Worker Earns in Arkansas
| Period | Hours | Gross pay at $11.00 |
|---|---|---|
| Weekly | 40 | $440.00 |
| Biweekly | 80 | $880.00 |
| Monthly (average) | 173.33 | $1,906.63 |
| Annual | 2,080 | $22,880.00 |
These are gross figures before taxes and deductions; see our explainer on gross pay and the salary to hourly calculator.
Employer Compliance Checklist
- Count your employees: four or more means the Arkansas $11.00 rate applies
- Pay tipped staff at least $2.63 in cash wages and make up any shortfall to $11.00 each week
- Get department approval before paying any reduced student rate
- Apply overtime after 40 hours in a workweek
- Post the Arkansas minimum wage notice from the Department of Labor and Licensing
- Keep accurate time records; a time card calculator or automatic time tracking makes weekly tip credit reconciliation straightforward
Reviewed September 2026
Rates on this page come from the Arkansas Department of Labor and Licensing and the US Department of Labor state and tipped minimum wage tables as of July 1, 2026. Confirm the student rate rules and any legislative changes with the department before setting pay.
Accurate hours for every Arkansas employee
HiveDesk tracks time automatically and generates payroll-ready timesheets, so the $11.00 rate and tip credit calculations are always backed by records. $5/user/month, 14-day free trial.
How Arkansas Compares With Neighboring States
Arkansas pays more than every neighbor except Missouri, which moved to $15.00 through a 2024 ballot measure.
| State | Minimum wage (July 1, 2026) | Notes |
|---|---|---|
| Arkansas | $11.00 | Employers with 4 or more employees |
| Missouri | $15.00 | Indexed each January |
| Tennessee | $7.25 | No state law; federal rate |
| Mississippi | $7.25 | No state law; federal rate |
| Louisiana | $7.25 | No state law; federal rate |
| Texas | $7.25 | Federal rate |
| Oklahoma | $7.25 | Federal rate |
Employers hiring across the Missouri line face a $4.00 gap, while those working into Texas, Oklahoma or the Deep South states can pay the federal floor.
Common Minimum Wage Mistakes in Arkansas
- Paying $7.25 to employees of a four-person business; the state threshold is four or more employees, not five
- Paying tipped staff the federal $2.13 instead of Arkansas's $2.63
- Using a reduced student rate without department approval
- Assuming an inflation increase is coming; Arkansas has not indexed its rate
- Applying a city minimum wage; none exists in Arkansas
Coverage Examples Under the Arkansas Minimum Wage Act
The four-employee threshold generates most of the questions the Labor Standards Division receives. Three scenarios illustrate how it works:
- A cafe in Conway with three employees and $300,000 in annual sales is not covered by the Arkansas act. It is almost certainly covered by the federal law through its employees' handling of goods that crossed state lines and its card processing, so it must pay $7.25, not $11.00, unless the business is somehow outside federal coverage as well.
- A landscaping company in Bentonville that hires a fourth employee in March becomes a covered Arkansas employer and must pay $11.00 to all four from that point, regardless of its federal status.
- A seasonal fireworks stand that employs five people for three weeks in June is covered for that period. The Act counts employees, not full-time equivalents, and does not require them to be permanent.
When in doubt, the safe course is to pay $11.00 to everyone and document the headcount in each pay period.
Frequently Asked Questions
What is the minimum wage in Arkansas in 2026?
$11.00 per hour for employers with four or more employees. The rate has not changed since January 1, 2021.
Is the Arkansas minimum wage going up in 2027?
No increase is scheduled. Arkansas does not index its minimum wage to inflation, so a change would need a new law or ballot measure.
What is the tipped minimum wage in Arkansas?
$2.63 per hour in cash wages, with tips making up the remaining $8.37 to reach $11.00.
Does the Arkansas minimum wage apply to small businesses?
The state law covers employers with four or more employees. Smaller employers follow the federal $7.25 rate if the federal law covers them.
Can Little Rock or Fayetteville set a higher minimum wage?
No. Arkansas law bars cities and counties from setting their own minimum wage.
Is there a student or training wage in Arkansas?
Arkansas allows a reduced rate for full-time students with department approval. Confirm the current percentage and hour limits with the Labor Standards Division.
When does overtime start in Arkansas?
After 40 hours in a workweek, at 1.5 times the regular rate. There is no daily overtime rule.
How much does a full-time minimum wage worker earn in Arkansas per year?
$22,880 before taxes, based on 2,080 hours at $11.00 per hour.