Overview: The state of Arkansas has amended the state minimum wage statute in numerous areas impacting employers.
Effective Date: July 23, 2019
Details:
Some of the highlights are as follows:
The Act permits employers that customarily furnish board, lodging, apparel or other items for employees’ benefit to take a credit against the minimum wage for the reasonable value of the items or benefits provided, up to 30 cents per hour. The amendments modify the allowance by removing the 30 cent per hour cap and stipulate that the reasonable value of the items provided is determined by looking to federal law, as it exists on January 1, 2019, in determining reasonable cost.
The Act provides for an award of liquidated damages to employees for violations of the wage and hour provisions. The amendments clarify that employee must prove the violation was willful in order to receive liquidated damages.
The amendments further add new provisions concerning civil procedure under the Act. Employees may not be added as party plaintiffs unless they give written consent and file the consent with the court. Further, the amendments specify that the Act’s statute of limitations is two years.
The amendments add a subsection to the Act to specifically allow employers to pay employees by direct deposit or debit card. If wages are provided by debit card, then the card must allow at least one free withdrawal for each deposit of wages loaded onto the debit card.
The Act requires that upon termination, employees must be paid within seven days of discharge. The amendments modify this requirement and provide that employees must be paid all wages due by the next regular payday. If an employer fails to make the payment within seven days of the next regular payday, then the employer must pay double the wages due.
For a copy of the amended law, please click on the link provided below:
http://www.arkleg.state.ar.us/assembly/2019/2019R/Bills/HB1751.pdf
Action Required: Covered employers should ensure compliance with the new amendments. Employers should review and revise their employee handbook and policies accordingly and train Human Resources and payroll personnel on the amended law’s requirements.
Please contact your dedicated service professional with any questions.
* Produced in Partnership with Littler Mendelson, P.C.