Arkansas labor laws and federal regulations protect both employers and employees in the state by ensuring fair compensation for overtime work. This article breaks down applicable overtime regulations in Arkansas, covering eligibility, exemptions, calculation methods, and additional considerations such as compensatory time and paid leave.
This Article Covers:
Understanding Overtime in Arkansas
- Which Overtime Laws Apply in Arkansas?
- What is the Regular Rate of Pay in Arkansas?
- How Do You Define a Workweek in Arkansas?
- How Much is Overtime Pay in Arkansas?
- Who is Eligible for Overtime Pay in Arkansas?
- Who is Exempt from Overtime Pay in Arkansas?
- Can Employers Mandate Overtime Work in Arkansas?
Overtime for Hourly Rate, Two or More Hourly Rates, and Salaried Employees in Arkansas
- How Do You Calculate Overtime for Hourly Employees in Arkansas?
- How Do You Calculate Overtime for Employees with Two or More Hourly Rates in Arkansas?
- How Do You Calculate Overtime for Salaried Employees in Arkansas?
Overtime for Complex Pay Structures in Arkansas
- How Do You Calculate Overtime Pay for Piece Rate Employees in Arkansas?
- How Do You Calculate Overtime for Flat Rate Employees in Arkansas?
Additional Considerations for Arkansas Overtime
- Can an Employee Choose Compensatory Time Instead of Overtime in Arkansas?
- Are Paid Sick Leave and Time Off Included in Overtime Calculation?
Understanding Overtime in Arkansas
Which Overtime Laws Apply in Arkansas?
In Arkansas, both state law and the Fair Labor Standards Act (FLSA) are enforced. When there’s a conflict between these laws, employers must adhere to the one that benefits the employee most.
What is the Regular Rate of Pay in Arkansas?
The regular rate of pay in Arkansas, as per the FLSA, can be calculated by dividing an employee’s total earnings for a period by their total hours worked.
Regular Rate for the workweek = Total compensation in the workweek (except for statutory exclusions) ÷ Total hours worked in the workweek
How Do You Define a Workweek in Arkansas?
A workweek in Arkansas, according to FLSA, is a fixed 168-hour period (seven consecutive 24-hour days) set by the employer. If the employer does not specify a workweek, it defaults to the calendar week, from Sunday to Saturday.
How Much is Overtime Pay in Arkansas?
According to Arkansas law, most employees must be paid overtime if they work more than 40 hours in a week. Overtime pay must be at least 1.5 times their regular hourly rate.
This rule aligns with federal standards for overtime pay. With the Arkansas minimum wage set at $11 per hour, this puts the minimum overtime rate at $16.50 per hour.
Who is Eligible for Overtime Pay in Arkansas?
In Arkansas, most hourly workers are eligible for overtime pay if they work more than 40 hours in a week. Salaried employees may also qualify if they do not meet the criteria for exemption under the FLSA or the Arkansas Minimum Wage Act.
Additionally, certain blue-collar workers—including manual laborers, firefighters, police officers, paramedics, and other emergency personnel—must receive overtime pay regardless of their salary.
Who is Exempt from Overtime Pay in Arkansas?
In Arkansas, employees earning at least $684 per week ($35,568 annually) are exempt from overtime pay, meaning they don’t receive extra wages for working over 40 hours a week. This exemption applies to executives, administrators, professionals, outside salespersons, and creative workers.
Federal law and the Arkansas Minimum Wage Act also exempts other workers from overtime pay, including:
- Aircraft salespeople
- Airline employees
- Amusement/recreational employees in national parks/forests/Wildlife Refuge System
- Announcers, news editors, and chief engineers at major radio or TV stations
- Babysitters on a casual basis
- Boat salespeople
- Buyers of agricultural products (poultry, egg, milk, etc.)
- Companions for the elderly
- Country elevator workers (rural)
- Criminal investigators receiving availability pay
- Domestic employees who live in
- Domestic workers
- Employees in national parks, amusement, or recreation facilities
- Farm implement salespeople
- Federal criminal investigators
- Firefighters working in small (less than 5 firefighters) public fire departments
- Fishing industry workers
- Forestry employees of small (less than 9 employees) firms
- Fruit & vegetable transportation employees
- Government employees
- Highly compensated employees earning at least $107,432 per year
- Homeworkers making wreaths
- House parents in non-profit educational institutions
- Independent contractors (under specific conditions)
- IT personnel earning at least $27.63 per hour
- Livestock auction workers
- Local delivery drivers and driver’s helpers
- Lumber operations employees of small (less than 9 employees) firms
- Motion picture theater employees
- Newspaper delivery workers
- Newspaper employees of limited circulation newspapers
- Police officers working in small (less than 5 officers) public police departments
- Radio station employees in small markets
- Railroad employees
- Seamen on American vessels
- Seamen on other than American vessels
- Sugar processing employees
- Switchboard operators
- Taxicab drivers
- Television station employees in small markets
- Truck and trailer salespeople
- Volunteers in religious, non-profit, charitable, or educational organizations
- Workers in maple syrup production
- Youth employed as actors or performers
- Youth employed by their parents
Can Employers Mandate Overtime Work in Arkansas?
Yes, employers in Arkansas can require employees to work overtime as long as they comply with state and federal labor laws. However non-exempt employees must receive overtime pay—at least 1.5 times their regular hourly rate—for any hours worked beyond 40 in a workweek.
Overtime for Hourly Rate, Two or More Hourly Rates, and Salaried Employees in Arkansas
How Do You Calculate Overtime for Hourly Employees in Arkansas?
To understand overtime calculations for hourly employees in Arkansas, take the following example.
John is an hourly employee and earns $11 per hour. He has worked 47 hours in a specific week and is eligible to earn overtime pay. To determine his overtime wages, we can use the following steps:
Since John earns $11.00 per hour, that would automatically be his regular rate of pay. |
Multiply the regular pay rate by 1.5. John’s overtime rate would then be: ($11 x 1.5 = $16.50) |
If John worked 47 hours in a week, his overtime hours would be seven: (47 hours – 40 hours = 7 hours). |
Multiply the overtime hours by the overtime rate. From the example, John’s overtime pay would be a total of: (7 hours x $16.50 = $115.50). |
It’s important to note that the regular rate can change if the employee gets extra compensation or incentives during the week.
How Do You Calculate Overtime for Employees with Two or More Hourly Rates in Arkansas?
To find the regular rate for an employee with two or more hourly rates in Arkansas, find their total earnings during the workweek and divide them by the hours worked.
Suppose John earns a total of $800 in a workweek with two different hourly jobs and has worked 47 hours. To calculate her overtime wage, use the following steps:
Divide weekly earnings by the total hours worked to get John’s regular pay rate: ($800 ÷ 47 hours = $17.00). |
Multiply the regular pay rate by 1.5 to get the overtime rate. Here, the regular rate is $17.00, the overtime rate would then be: ($17.00 x 1.5 = $25.50). |
John worked 47 hours so his overtime hours would be seven: (47 hours – 40 hours = 7 hours). |
Multiply the overtime rate by the overtime hours. In this example, John’s overtime pay would be: ($25.50 x 7 hours = $178.50). |
How Do You Calculate Overtime for Salaried Employees in Arkansas?
To calculate the regular hourly rate for a salaried employee, divide their weekly salary by the number of weekly hours it covers.
For example, if an employee earns $420 for a 35-hour week, their regular rate is $12.00. Overtime pay is 1.5 times this rate for hours over 40.
For salaries covering longer periods, it’s best to convert them to a weekly equivalent. Monthly salaries are multiplied by 12 to obtain a yearly equivalent and then divided by 52 to obtain a weekly salary, while semimonthly salaries are multiplied by 24 and divided by 52.
For example, a monthly salary of $2,080 (or a semimonthly salary of $1,040) for a 40-hour workweek equals an hourly rate of $12.00 per hour.
Employers can also calculate the hourly rate by dividing the monthly salary by the number of workdays in the month and then by the hours in a typical workday. However, this rate must meet or exceed the minimum wage.
Overtime for Complex Pay Structures in Arkansas
How Do You Calculate Overtime Pay for Piece Rate Employees in Arkansas?
If an employee in Arkansas is paid by the piece (instead of hourly), their regular hourly rate is calculated by adding up all their earnings for the week—including piece-rate pay, bonuses, and pay for waiting time—then dividing that total by the hours they worked.
For overtime, piece-rate workers are owed an extra half of their regular hourly rate for every hour worked beyond 40.
For example, if an employee works 50 hours and earns $600 from piece work, their regular hourly rate would be $12.00 ($600 ÷ 50).
For the 10 overtime hours, they get an extra $6.00 per hour, adding $60.00 to their total pay. Their final weekly earnings would then be $660.00.
How Do You Calculate Overtime for Flat Rate Employees in Arkansas?
A flat rate employee in Arkansas earns a set amount for completing a specific task or job, no matter how long it takes, while an hourly employee is paid based on the number of hours worked.
For example, an employee earns $12.00 per hour for regular work and $18.00 per hour for overtime. If they are also paid a flat rate of $45.00 for completing a special task outside regular hours, this payment must be included in their total earnings when calculating overtime.
Considering all that, if the employee works 48 hours in a week, their total earnings would amount to:
Total Earnings =($12.00 x 40 Regular Working Hours) + ($18.00 x 8 Overtime Hours) + $45.00 Flat Rate for Special Task
Total Earnings = $669.00
Next, get the employee’s regular rate of pay by dividing the total weekly earnings by total weekly work hours.
Regular Rate of Pay = $669 / 48 = $13.94
To calculate overtime pay, the extra half-time rate is determined by dividing $13.94 by two, equaling $6.97 per hour. Since the employee worked eight overtime hours, they are owed an additional $55.76.
Late Shift Payment Consideration
Note that an employer can credit a flat rate worker’s wages for late shift payments as they already count as overtime wages.
In the example above, if the employer deducts $15.00 amount for late shift payment, the total wages equal (wages-late shift payment) will equal to $654. This is then divided by 48 hours, resulting in a regular hourly rate of $13.63.
Additional Considerations for Arkansas Overtime
Can an Employee Choose Compensatory Time Instead of Overtime in Arkansas?
Compensatory time (comp time) is sometimes given to employees in lieu of overtime pay. This is completely legal in Arkansas, under the Fair Labor Standards Act.
For every overtime hour worked, employees can earn at least 1.5 hours of comp time. However, there are rules on how much comp time can be accumulated, how it can be used, and when unused comp time must be paid out.
Police officers, firefighters, emergency responders, and seasonal workers can accrue up to 480 hours, while other public sector employees can accumulate up to 240 hours of comp time in Arkansas.
Are Paid Sick Leave and Time Off Included in Overtime Calculation?
No, paid sick leave and time off are not included in overtime calculations. Overtime is based only on actual hours worked. If you receive pay for a holiday, sick day, or other time off, those hours do not count toward the 40-hour threshold for overtime under state and federal law.
Important Cautionary Note
This content is provided for informational purposes only. While we make every effort to ensure the accuracy of the information presented, we cannot guarantee that it is free of errors or omissions. Users are advised to independently verify any critical information and should not solely rely on the content provided.
