Arkansas Wage Payment Law

Arkansas wage payment law is located in the sections below of the Arkansas Code.

• 11-4-401. Payment semimonthly.
• 11-4-402. Wage payment; Wage advances and limit on discount; Payment in currency, check or electronic direct deposit; Penalty for violations.
• 11-4-403. Payment by evidence of indebtedness.
• 11-4-404. Payment by sale of goods or supplies.
• 11-4-405. Payment on discharge.
• 14-59-105. Prenumbered checks - Electronic funds transfers.
• 19-4-1602. Payroll deductions.

11-4-401. Payment semimonthly.

(a) Except as provided in subsection (c) of this section, all corporations doing business in this state who shall employ any salesmen, mechanics, laborers, or other servants for the transaction of their business shall pay the wages of the employees semimonthly.

(b) Any corporation that shall, through its president or otherwise, violate subsections (a) and (c) of this section shall be deemed guilty of a misdemeanor and on conviction shall be fined in any sum not less than fifty dollars ($50.00) nor more than five hundred dollars ($500) for each offense.

(c) All corporations with an annual gross income of five hundred thousand dollars ($500,000), or more, doing business in this state who shall employ any salesmen, mechanics, laborers, or other servants for the transaction of their business shall pay the wages of their management level and executive employees who are exempt under the provisions of Section 213 of the Fair Labor Standards Act, as amended, from the provisions of Sections 206 and 207 of said act, and who are compensated at a gross rate in excess of twenty-five thousand dollars ($25,000) per year, at a minimum of once each calendar month.

Sec. 11-4-402. Wage payment; Wage advances and limit on discount; Payment in currency, check or electronic direct deposit; Penalty for violations.

(a) It shall be unlawful for any milling or manufacturing company, or any other person, corporation, or company employing persons to labor for them in the State of Arkansas, to discount the wages of their employees or laborers when payment is made or demanded before the regular paydays more than at the rate of ten percent (10%) per annum from the date of payment to the regular payday.

(b)(1)

(A) All employees shall be paid in currency, or by check or electronic direct deposit into the employee's account.

(B) The employee may opt out of electronic direct deposit by providing the employer a written statement requesting payment by check.

(2) Notwithstanding any provision to the contrary, an employee has a right to be paid in currency if the employer has at any time paid the employee with a check drawn on an account with insufficient funds.

(3) This subsection (b) does not apply to any demand or claim by the Department of Labor.

(c) Any evasion or violation of this section shall be usury and a misdemeanor. The person, company, or corporation, or their agents, violating this section shall be fined in any sum not less than ten dollars ($10.00) nor more than five hundred dollars ($500), and the entire property of the person, company, or corporation shall be subject to the payment of the fine and costs.

11-4-403. Payment by evidence of indebtedness.

(a) It shall be unlawful for any corporation, company, firm, or person engaged in any trade or business in this state, either directly or indirectly, to issue, sell, give, or deliver to any person employed by the corporation, company, firm, or person, in payment of wages, whether the wages are earned or not, any scrip, token, draft, check, or other evidence of indebtedness payable or redeemable otherwise than in lawful money, at the next regular payday of the corporation, company, firm, or person.

(b) If the scrip, token, draft, check, or other evidence of indebtedness is issued, sold, given or delivered to the laborer, it shall be construed, taken, and held in all courts and places to be a promise to pay the sum specified therein in lawful money by the corporation, company, firm, or person issuing, selling, giving, or delivering the same to the person named therein or the holder thereof.

(c) The corporation, company, firm, or person issuing, selling, giving, or delivering the evidence of indebtedness in violation of subsection (a) of this section shall, moreover, be guilty of a misdemeanor and upon conviction shall be fined not less than twenty-five dollars ($25.00) and not more than one hundred dollars ($100). At the discretion of the court trying the action, the officer or agent of the corporation, company, firm, or person issuing, selling, giving, or delivering the evidence of indebtedness may be imprisoned not less than ten (10) nor more than thirty (30) days.

(d) In any suit by any holder of the scrip, token, draft, check, or other evidence of indebtedness or in any prosecution under the provisions of this section, it shall not be required of the plaintiff in the suit or the state in the prosecution to prove that the scrip, token, draft, check, or other evidence of indebtedness was sold, given, issued, or delivered by the defendant in the suit or prosecution to any laborer or employee in payment of wages of the laborer or employee.

(e) The provisions of this section do not apply to coal mines when fewer than twenty (20) men are employed under the ground.

11-4-404. Payment by sale of goods or supplies.

(a) If any corporation, company, firm, or person shall coerce or compel or attempt to coerce or compel any employee in its employment to purchase goods or supplies in payment of wages, whether the wages are earned or not, from any corporation, company, firm, or person, the first-named corporation, company, firm, or person shall be guilty of a misdemeanor and upon conviction shall be punished as provided in Sec. 11-4-403.

(b) If any corporation, company, firm, or person shall directly or indirectly sell to any employee in payment of wages, whether earned or not, goods and supplies at prices higher than a reasonable or current market value thereof in cash, the corporation, company, firm, or person shall be liable to the employee, in a civil action in double the amount of the charges made and paid for any goods and supplies in excess of the reasonable or current value in cash thereof.

(c) The provisions of this section do not apply to coal mines when fewer than twenty (20) men are employed under the ground.

11-4-405. Payment on discharge.

(a)

(1) Whenever any railroad company or corporation or any receiver operating any railroad engaged in the business of operating or constructing any railroad or railroad bridge shall discharge, with or without cause, or refuse to further employ any servant or employee thereof, the unpaid wages of the servant or employee then earned at the contract rate, without abatement or deduction, shall be and become due and payable on the day of the discharge or refusal to longer employ.

(2) Any servant or employee may request of his foreman or the keeper of his time to have the money due him, or a valid check therefor, sent to any station where a regular agent is kept. If the money or a valid check therefor does not reach the station within seven (7) days from the date it is so requested, then, as a penalty for the nonpayment, the wages of the servant or employee shall continue from the date of the discharge or refusal to further employ at the same rate until paid. However, the wages shall not continue more than sixty (60) days unless an action therefor shall be commenced within that time.

(b) This section shall apply to all companies and corporations doing business in this state and to all servants and employees thereof. Any servants or employees who shall hereafter be discharged or refused further employment may request or demand the payment of any wages due and, if not paid within seven (7) days from discharge or refusal to longer employ, then the penalties provided in subdivision (a)(2) of this section for railway employees shall attach.

(c) Any servant or employee whose employment is for a definite period of time and who is discharged without cause before the expiration of that time may, in addition to the penalties prescribed by this section, have an action against any employer for any damages he may have sustained by reason of the wrongful discharge, and the action may be joined with an action for unpaid wages and penalty.

(d) No servant or employee who secretes or absents himself to avoid payment to him, or refuses to receive payment when fully tendered, shall be entitled to any benefit under this section for the time as he so avoids payment.

14-59-105. Prenumbered checks - Electronic funds transfers.

(a) All disbursements of municipal funds, except those described in this section and as noted in Sec. 14-59-106, petty cash funds, are to be made by prenumbered checks drawn upon the bank account of that municipality.

(b) The checks shall be of the form normally provided by commercial banking institutions and shall contain as a minimum the following information:

(1) Date of issue;
(2) Check number;
(3) Payee;
(4) Amount both in numerical and written form; and
(5) Signature of authorized disbursing officer of the city.

(c) The municipality shall maintain printer's certificates as to the numerical sequence of checks printed.

(d) Disbursements of municipal funds used for payment of salaries and wages of municipal officials and employees may be made by electronic funds transfer (EFT) provided that:

(1) The municipal employee or official responsible for such disbursements shall maintain a ledger containing at least the name, address and social security number of the employee receiving payment of salary or wages; the routing number from the bank in which the funds are held; the account number and the accounts clearing house trace number pertaining to the transfer; The date and amount transferred and proof that the employee has been notified of direct deposit of their salary or wages by EFT, and;

(2) No such disbursement may be made by EFT without written consent of the employee to whom direct deposit is made.

19-4-1602. Payroll deductions.

 

(a) Deductions from the payrolls of state employees, both regular and extra help, are authorized only for the following purposes:

(1) Withholding taxes;
(2) Social security contributions;
(3) Contributions to any state retirement system or approved
plan of deferred compensation;
(4)

(A) Group hospital, medical, and life insurance deductions.
(B) However, any payroll deductions through the Arkansas state mechanized payroll system for state employees for coverages other than the state-authorized plan shall be approved by the State and Public School Life and Health Insurance Board;

(5) Payments to state employees' credit unions;
(6) Value of maintenance perquisites;
(7) Payment of union dues, when requested in writing by state employees;
(8) Purchase of United States Government savings bonds;
(9) Arkansas State Employees Association dues, when requested in writing by those state employees;
(10) Fees for participation in the State Employees Benefit Corporation, when requested in writing by those state employees;
(11) Contributions to the major federated fund-raising organization, when authorized by those state employees;
(12) Arkansas State Police Association dues, when authorized in writing by those state employees;
(13) Fraternal Order of Police dues, when requested in writing by those state employees; (14) Central Arkansas State Troopers Coalition dues, when authorized in writing by those state employees; (15) Arkansas Rehabilitation Association dues, when authorized in writing by those state employees; (16) Correctional Peace Officer Foundation dues, when authorized in writing by those state employees; (17) Department of Correction Employees Association dues, when requested in writing by those employees; (18) American Association of University Professors dues, when requested in writing by those employees; (19) Arkansas Association of Correctional Employees Trust dues, when requested in writing by those employees; (20) Department of Correction Bus Pool dues, when requested in writing by those employees; and (21) For such other purposes as are specifically authorized by law but not enumerated in this subsection.

(b) If a state employee authorizes in writing the payroll deduction of dues of any union or professional association representing the employee, the agency shall deduct the dues from the payroll of the employee and remit the dues to the organization. (c) Deductions authorized by this section shall be made in compliance with rules, regulations, and procedures established by the Chief Fiscal Officer of the State.