Human Resource Management Association of Arkansas

Legal Update

6 Aug 2019 11:57 AM | Melanie Ridlon (Administrator)
  • The “PAYMENT ON DISCHARGE” law (Ark Code Ann 4-11-405) was amended and updated in the last legislative session.  An employer who discharges an employee must pay the wages due by the next regular payday.  Failure to pay within 7 days of the next regular payday will obligate the employer to pay double wages.  The Arkansas Department of Labor and Licensing (ADOL) interprets “next regular payday” to mean the pay day in which the wages in question would normally be paid.  Though the statute requires payment on “discharge” and does not appear to apply to employees who resign/quit, ADOL has stated that their office will take wage claims from employees who quit and have not been paid by the next regular payday (or within the 7-day grace period).
  • There is a NEW INDEPENDENT CONTRACTOR TEST for the following state agencies:  Arkansas Department of Labor, Workers’ Compensation, and Department of Workforce Services.  The new test matches the IRS test.  Now is the time to reevaluate your employees and independent contractor classifications.  The factors are found in the following link: Empower Independent Contractors Act.

REMINDER: AR MINIMUM WAGE (AMWA) GOES UP TO $10/HR IN JANUARY, 2020.

  • New law requires proof that a violation is willful to recover liquidated damages under the AMWA law for private civil lawsuits.
  • Statute of limitations on claims under the AMWA was changed from 3 years to 2 years.

If you have any questions regarding these updates, you may contact Jenny Holt Teeter or Brianna C. Cook at Gill, Ragon, Owen Attorneys.



HRMA | 121 Ridgeway Drive, Little Rock, AR 72205 |(501) 372-0929 P | (501) 244-2333 F | hrmaar@sbcglobal.net

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