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Arkansas Amends Wage Payment Timing Requirements
posted: Monday, March 27th
Amended Law Requires Employers to Pay Wages No Less Frequently than Semimonthly
An amendment to Arkansas' wage payment timing requirements, expected to take effect July 31, 2017, aims to increase the flexibility in the law regarding the frequency of wage payments.
Current Law
Under current law, corporations doing business in Arkansas who employ any salespersons, mechanics, laborers, or other servants for the transaction of their business generally must pay employees' wages semimonthly. However, corporations with an annual gross income of $500,000 or more can pay their management and executive employees who are exempt under the federal Fair Labor Standards Act once each month, if these employees are paid more than $25,000 in gross wages annually.
Amended Law
Under a new amended law, effective July 31, 2017, all corporations doing business in Arkansas that employ any salespersons, mechanics, laborers, or other servants for the transaction of business must pay employees' wages no less frequently than semimonthly.
Note: The new law maintains the exemption that corporations with an annual gross income of $500,000 or more can pay their management and executive employees who are exempt under the federal Fair Labor Standards Act once each month, if these employees are paid more than $25,000 in gross wages annually.
Click here to read the text of the law.
