Compliance Watch:

What are my rights as a salaried employee in Arkansas?

According to the Fair Labor Standards Act (FLSA) and Arkansas labor laws, a salaried employee is any worker who receives a predetermined amount as compensation at agreed intervals.

Arkansas salaried employees laws state that salaried employees should be paid twice a month but corporations with an annual gross income of $500,000 or more can pay their executive and management-level employees once a month. Regardless of the pay period, salaried employees can receive their pay in cash, check, or a direct deposit into their bank accounts. 

In Arkansas, the fixed compensation for salaried employees may also include compensated sick leave, which accrues to employees who work for a minimum of 1000 days in one work year. Further, many salaried individuals often meet the eligibility criteria for 12 weeks of unpaid leave as per the Family and Medical Leave Act (FMLA). 

The FLSA categorizes specific employees as exempt, notably many salaried personnel, particularly those in managerial roles, executives, administrators, professionals, and computer science staff. If you are a salaried employee but do not hold one of these positions, you may fall in the non-exempt category, making you eligible for overtime compensation.

Please note that these differences can vary based on the specific job, employer policies, and employment agreements. Additionally, labor laws and regulations can change, so it’s important to consult your employment contract, seek legal counsel, or contact the Arkansas Department of Labor and Licensing for the most accurate information.

Here are your rights as a salaried employee in Arkansas according to state labor and employment law:

• Minimum Wage: Based on their status as exempt or non-exempt, salaried employees in Arkansas are entitled to either the minimum threshold for exempt employees as established by the Fair Labor Standards Act (FLSA) or the state’s minimum wage rate of $11 per hour. 
• Overtime Pay: Under the FLSA and Arkansas state laws, salaried employees are generally entitled to overtime pay at a rate of 1.5 times their regular hourly rate for time worked above 40 hours in a workweek, unless they are exempt employees. Eligible employees of public agencies have the option of accruing comp time in lieu of overtime pay. 
• Equal Pay: Salaried employees in the state have the right to receive equal pay for equal work regardless of gender. Employers who violate this law are guilty of a Class C misdemeanor.
• Leave: Salaried state employees in Arkansas are eligible for paid sick leave, which accrues at a rate of one day for every month worked in the first three years of employment. Further, eligible employees have the right to take unpaid leave for certain family or medical reasons under the Family and Medical Leave Act (FMLA).
• Whistleblower Protection: Employees have the right to report illegal activities or safety violations without fear of retaliation. The state’s Whistleblower Protection Act protects whistleblowers from adverse actions such as termination of employment, threats, and denial of promotions, privileges, or compensation.  
• Meal and Rest Breaks: Arkansas law requires employers who provide rest breaks of 20 minutes or less to compensate employees for them. Additionally, employees who get longer breaks for meals should either be compensated for the time or relieved of their duties completely for the entire duration of the break. 
• Time Off for Civic Duties: Employees have the right to take time off work to vote or serve in juries without using up their sick leave, vacation days, or other types of leave. Employers who violate these rights are liable for fines 
• Anti-Discrimination and Harassment: Salaried employees are protected from discrimination and harassment based on race, gender, religion, national origin, disability, pregnancy, and age. Further, employees are protected from retaliation for reporting incidents of harassment and discrimination.

Please keep in mind that employment laws can change, and additional rights and protections beyond those listed here may exist. Therefore, if you have specific concerns or questions about your rights as a salaried employee in Arkansas, it’s advisable to seek legal counsel or check with the state’s labor department for the most up-to-date information and guidance.

 Yes. While some salaried employees are not eligible for overtime pay, others qualify for overtime pay for time worked above 40 hours in a workweek. Being salaried does not automatically exempt you from overtime. That said, Arkansas overtime laws categorize the following types of salaried employees as exempt and, therefore, ineligible for overtime pay if they earn $684 per week ($35,568 annually) or more:

• Executive Employees: Bona fide executive employees who manage a company or one of its departments or subdivisions, oversee at least two full-time employees, and have the authority to hire or fire employees are not eligible for overtime.
• Administrative Employees: Bona fide administrative employees who perform non-manual duties that are directly related to management or business operations of the employer and exercise discretion and independent judgment regarding significant matters in the company are exempt.
• Professional Employees: Overtime pay does not apply to bona fide professional employees in some fields if their work requires advanced knowledge, education, and skill. As per Arkansas labor laws, some computer employees fall under this category.
• Outside Sales Employees: Employees who make sales and spend most of their time away from the employer’s place of business may not qualify for overtime pay in Arkansas.
• Highly Compensated Employees: Employees who earn a total annual compensation above a certain threshold and perform either administrative, executive, or professional duties may be ineligible for overtime. 

Notably, people who hold elective office or serve as advisors to elected officials in the state are not eligible for overtime. It is important to note that the criteria and salary thresholds for these exemptions may change over time. To stay informed, consult the Arkansas Department of Labor and Licensing or seek legal counsel.

Arkansas state laws allow employers to make deductions from employees’ salaries if they are authorized by the employee in writing or required by the law. Therefore, an employer can make the following deductions from your salary:

• Taxes: An employer is allowed to deduct state and federal taxes from an employee’s salary. Based on your income, your employer can deduct up to 5.9% of your salary as state income tax. You can confirm the amount of income tax your employer should deduct from your pay from this table.
• Court-Ordered Wage Garnishments: Employers in Arkansas are obliged to comply with court orders demanding wage deductions for child support, bankruptcy proceedings, and other payments to third parties.
• Voluntary Wage Assignments: Employers are allowed to comply with employee orders to make deductions for insurance premiums, the purchase of savings bonds, charitable donations, and union dues.

The state explicitly prohibits employers from making the following non-standard deductions from the salary of an employee who earns minimum wage:

• Deductions for losses from breakage and spoilage
• Deductions for the recovery of cash losses and inventory shortages
• Fines and penalties for tardiness
• Quitting without notice

Under Arkansas state laws, employers are not required to provide breaks for salaried employees. The only employees who are eligible for breaks in the state are minors aged 16 and below working in the entertainment industry.

However, employers can choose to allow employees to take short periods of rest during the workday. It is worth noting that if an employer offers rest periods, breaks of up to 20 minutes are considered compensable time. Longer breaks can be unpaid if the employees are relieved of their duties for the entire duration of the break.

Arkansas state laws do not limit a workday to 8 hours but limit a workweek to 40 hours. Therefore, employers in the state are at liberty to offer flexible working arrangements to employees. 

Some common flexible working arrangements in Arkansas include an alternate work schedule that allows employees to work more than 40 hours in one week and less than 40 hours the next and remote working arrangements that allow employees to work away from the office as long as they meet all their work obligations.

Arkansas defers to the FLSA for the definition of exempt status. According to the Fair Labor Standards Act, exempt status refers to an employee’s exemption from overtime laws. Therefore, exempt employees do not qualify for and are not eligible for overtime pay even if they work for more than 40 hours in one workweek or more than 80 hours in a pay period. Essentially, exempt employees are not bound by overtime laws.

In addition to not being eligible for overtime, exempt employees are subject to a salary threshold. As per the FLSA, exempt status guarantees employees a minimum salary of $684 a week or $35,568 annually.

Exempt status has the following implications on an employee:

• Overtime Exemption: Salaried exempt employees do not receive extra compensation for working beyond the overtime eligibility threshold of 40 hours a week for employees with regular work schedule or 80 hours for every two weeks for employees under flexible working arrangements. 
• Fixed Salary: Exempt employees in Arkansas typically earn a predetermined salary paid once or twice a month.This guarantees them a stable income but denies them extra pay for fluctuations in workload.
• Minimum Salary Requirements: Exempt employees in Arkansas must meet the FLSA’s minimum salary threshold of $684 a week, which adds up to $1368 for employees who receive their pay twice a month or $2736 for employees who are paid once a month.
• Job Duties: Salaried exempt employees must perform specific job duties to qualify for exempt status. In Arkansas, this includes executive, administrative, professional, elective, and advisory duties. 
• Breaks: Arkansas laws do not establish mandatory rest and meal breaks for exempt employees. However, if breaks are offered, they are deemed compensable for exempt employees.
• Job Security: Since salaried exempt employees enjoy the protection of federal laws such as the FLSA and FMLA, they generally have more job security than hourly employees.
• Benefits and Perks: Employers may offer additional benefits and perks to exempt employees. These include health insurance, retirement plans, and PTO. Further, exempt employees are entitled to paid sick leave

Please note that exempt status is subject to regulations that change over time. To ensure compliance with the most current labor laws, employers and employees in Arkansas should consult with legal professionals, the U.S. Department of Labor’s Wage and Hour Division, or the Arkansas Department of Labor and Licensing.

The distinctions presented in this table are based on general employment laws. They may vary depending on specific circumstances, such as industry, job classification, and collective bargaining agreements. As a salaried employee in Arkansas, it is important to understand your rights and responsibilities under state and federal labor laws better by seeking legal counsel or contacting the Arkansas Department of Labor and Licensing.

Exempt employees in Arkansas are not subject to certain wage and hour provisions of the FLSA and are generally excluded from minimum wage requirements. To qualify as an exempt employee in the state, an employee must meet the following criteria outlined by the FLSA:

1. Salary Basis: Exempt employees in Arkansas must be paid on a salary basis. 
2. Salary Level Test: To qualify as exempt in Arkansas, an employee’s salary must meet or exceed the minimum salary threshold of $684 per week ($35,568 per year). 
3. Duties Test: In addition to meeting the salary threshold, exempt employees must also perform specific job duties. The exempt duties in the state fall under one of the following categories:
   • Executive Exemption: Salaried employees qualify for this exemption if they manage the company or one of its recognized departments or subdivisions, supervise at least two full-time employees and have the authority to hire, promote, and fire employees. Individuals in elective positions in the state and their advisors are considered executive employees.
   • Administrative Exemption: To qualify for this exemption, employees must perform office or non-manual work directly related to the management of the company or general business operations. Further, their role should involve exercising discretion and independent judgment on significant matters.
   • Professional Exemption: To qualify for this exemption, employees must perform work requiring advanced knowledge in a field of science or learning, customarily acquired through advanced education or its equivalent. Additionally, their work should involve the exercise of discretion and judgment. Under Arkansas state law, employees who perform computer-related duties such as systems analysis and programming are considered professional employees.
   • Outside Sales Exemption: To qualify for this exemption, employees must be engaged in making sales or obtaining orders and customarily work away from the employer’s place of business.

It is important to note that meeting the salary threshold alone does not make an employee exempt. A salaried employee must also perform duties that align with one of the FLSA’s exempt categories to qualify for exemption. Further, the regulations on which exemption criteria are based evolved from time to time. Therefore, you should consult the Arkansas Department of Labor and Licensing or seek legal counsel for the most up-to-date information on exempt employee criteria in the state.

The minimum wage in Arkansas is currently $11 per hour. The minimum wage for tipped employees is significantly lower at $2.63 per hour but if tips do not bring it up to $11 per hour, the employer should top it up to bring it to the state’s minimum wage. Therefore, non-exempt salaried employees in the state earn a minimum of $11 per hour regardless of their occupation.

Comparatively, exempt employees are not bound by the state’s minimum wage laws. As such, their minimum salary is the FLSA’s exempt salary threshold of $684 per week.

Salaried employees who are eligible for overtime receive overtime pay for time worked beyond 40 hours a week if they work regular schedules or 80 hours per pay period if they have flexible working arrangements. Overtime pay is computed at a rate of 1.5 times the regular hourly rate. 

Employees of public agencies in Arkansas can opt for compensatory time instead of overtime pay. Comp time is compensated at a rate of 1.5 hours of time off for every 1 hour of overtime for up to 240 hours. Compensatory time is computed in 15-minute increments.

Arkansas laws outline two categories of permissible deductions from employees’ pay. The first category comprises mandatory deductions. An employer in Arkansas is required to make the following deductions from your salary:

• Taxes: An employer is allowed to deduct state and federal taxes from an employee’s salary. Based on your income, your employer can deduct up to 5.9% of your salary as state income tax. You can confirm the amount of income tax your employer should deduct from your pay from this table.
• Court-Ordered Wage Garnishments: Employers in Arkansas are obliged to comply with court orders demanding wage deductions for child support, bankruptcy proceedings, and other payments to third parties.
• Voluntary Wage Assignments: Employers are allowed to comply with employee orders to make deductions for insurance premiums, the purchase of savings bonds, charitable donations, and union dues.

The second category comprises non-standard deductions that an employer can only make on condition that they do not reduce an employee’s salary below the minimum wage. These include:

• Fines and penalties for lateness or employee misconduct
• Recovery of cash shortages and inventory losses
• Recovery of losses due to spoilage and breakage
• Penalties for quitting without notice

• The state’s wage and hour laws guarantee employees in Arkansas a minimum wage rate of $11 per hour, which is above the federal minimum wage. 
• Some employees in Arkansas earn overtime pay or compensatory time for working more hours than the standard 40 hours a week or 80 hours in two weeks.
• The Arkansas Occupational Safety and Health (AROSH) Division protects employees from workplace safety violations.
• Employees in Arkansas are protected from workplace discrimination based on race, country of origin, color, religion, gender, age, and disability.
• Arkansas child labor laws protect minors from hazardous jobs such as excavation, operating heavy machinery, and working in establishments that sell liquor.
• Arkansas prohibits employers from firing, demoting, withholding compensation, or retaliating in any other way against an employee who has reported labor violations or fraud as per the Fraud Detection and Whistle-Blower Protection Act.

Labor law violations in Arkansas can include wage discrepancies, denial of overtime pay, employee misclassification, employing minors in hazardous occupations, and retaliation for reporting fraud.

If your employer makes non-permissible or unauthorized deductions from your salary, withholds your pay, or violates other wage and hour laws, you can report the violations by filing a wage claim with the Labor Standards Division of the Arkansas Department of Labor and Licensing by filling out a wage claim request. Please note that the division is only responsible for claims of up to $2,000. 

To report workplace discrimination in Arkansas, you can file a discrimination charge with the U.S. Equal Employment Opportunity Commission by visiting an EEOC office or submitting an online enquiry through the public portal. It is important to note that you should file a discrimination claim within 180 days of the incident.