Arkansas Overtime laws & HR compliance analysis

Arkansas Overtime: What you need to know

Under Arkansas's overtime law, an employer must pay each employee overtime in the amount of 11/2 times the employee's regular pay rate for hours worked in excess of 40 hours a week (AR Stat. Sec. 11-4-211). The Arkansas overtime provision does not apply to employers with fewer than four employees or employers covered by the federal Fair Labor Standards Act (FLSA). Arkansas does not require overtime pay for hours worked in excess of 8 per day or on weekends or holidays. Because this rate is the same as that prescribed by the federal FLSA, the net effect of the state law is to extend overtime protections to workers not covered by the federal standard.
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The director of the Department of Labor may, by regulation, authorize employment in excess of the general standard for overtime on a basis other than the regular rate of pay for employment that:
• Necessitates irregular hours of work
• Is at a piece rate
• Pays on a commission basis in a retail or service establishment
• Is in a hospital or enterprise for the care of the sick, the aged, or individuals with mental illness
• Is by an independently owned and controlled local enterprise engaged in the wholesale or bulk distribution of petroleum products
• Is under a collective bargaining agreement
Compensatory time for state employees. In lieu of overtime compensation, the state of Arkansas and any political subdivision of the state may award compensatory time off at a rate of not less than 1 1/2 hours for each hour of employment for which overtime compensation is required. The compensatory time off may be provided only:
• Pursuant to applicable provisions of a collective bargaining agreement, memorandum of understanding, or other agreement between the public agency ...

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