Arkansas bar owners often struggle with labor law compliance. Missteps cost money and upset staff. This guide simplifies Arkansas bar regulations.
State law sets rules for wages, hours, and work conditions. Know these rules to protect your business. They also ensure fair treatment for your team.
Lavu helps you stay compliant. Our tools track hours and manage payroll. Focus on your bar’s success.
Minimum Wage
Current rate: $11.00 per hour (effective January 1, 2021)
Future changes: No future statewide increases are currently scheduled.
- Employers must pay non-tipped employees at least the state minimum wage.
- This rate applies to all hours worked. This includes training and setup time.
- Arkansas law stops local governments from setting their own minimum wage rates.
Tipped Employees
Tip credit allowed: Yes
Minimum cash wage: $2.75 per hour
Employers may require tip pooling for employees who regularly receive tips. This includes bartenders, servers, and barbacks. Managers, supervisors, and owners cannot join tip pools.
- Employers must tell employees about the tip credit before taking it.
- Employees keep all tips. Tip pooling is the only exception.
- Tips cannot pay for operational costs or employer duties.
- If an employee’s tips and direct wage fall below minimum wage, the employer must pay the difference.
Compliance Checklist
Verify non-tipped employee pay meets or exceeds the $11.00 state minimum wage.
Ensure tipped employees receive a direct cash wage of at least $2.75 per hour.
Confirm that tipped employees’ total hourly earnings (direct wage + tips) meet the $11.00 minimum wage.
Pay one and one-half times the regular rate for all hours over 40 in a workweek.
Review and update tip pooling policies to ensure compliance with federal and state regulations.
Ensure no managers, supervisors, or owners participate in tip pools.
Provide private, non-bathroom space and reasonable break time for nursing mothers.
Verify no employees under 18 serve or sell alcohol.
Maintain accurate time and payroll records for all employees.
Display all required state and federal labor law posters in a visible location.
Issue final paychecks to separated employees by the next regular payday.
Frequently Asked Questions
What is the minimum wage for non-tipped employees in Arkansas?
Yes, the minimum wage in Arkansas is $11.00 per hour. This applies to all non-tipped employees.
Can I take a tip credit for my bar staff in Arkansas?
Yes, Arkansas employers can take a tip credit. The minimum direct cash wage for tipped employees is $2.75 per hour.
Do I have to pay overtime for bartenders working more than 40 hours?
Yes, non-exempt employees get one and one-half times their regular pay. This applies for all hours worked over 40 in a workweek.
Are meal breaks required for bar employees in Arkansas?
No, Arkansas state law does not require meal breaks for adult employees. Federal law may apply in some cases.
Can I have a tip pool that includes managers at my bar?
No, managers, supervisors, and owners cannot join employee tip pools. Tip pools are only for employees who regularly receive tips.
Are there specific rules for employing minors in a bar setting in Arkansas?
Yes, individuals under 18 cannot serve or sell alcoholic beverages. Stricter hour limits apply to minors under 16.
When do I need to pay an employee their final paycheck after they leave?
Yes, you must pay final wages by the next regular payday. This applies if an employee resigns or is fired.
Does Arkansas have predictive scheduling laws for bars?
No, Arkansas has no statewide or local predictive scheduling laws. Employers do not need to give advance schedule notice or pay penalties for changes.
What are the recordkeeping requirements for Arkansas bars?
Yes, keep accurate records of employee names, addresses, job titles, hours worked, and wages paid. Maintain these records for at least three years.
Are breaks required for nursing mothers in Arkansas bars?
Yes, employers must provide reasonable break time and a private, non-bathroom space for nursing mothers. This requirement lasts up to one year after a child’s birth.
Ready to see Lavu in action?
Book a free demo and see how Lavu helps operators like you.
