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Arkansas Minimum Wage Act Proposed Rule Revisions 2025

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Summary

Arkansas DOL proposes amendments to Minimum Wage Act rules consistent with Acts 397, 737, and 743 of 2025. The proposed rules replace the existing 20-factor test for independent contractor classification with the federal standard under 11 CAR § 11-602(b)(4) and incorporate wage investigation reforms including assessment period procedures and remedies for violations.

What changed

The Arkansas Department of Labor and Licensing proposes amendments to the Arkansas Minimum Wage Act rules implementing three 2025 legislative acts. The most significant change replaces the existing 20-factor test for determining employee versus independent contractor status with the federal standard under 11 CAR § 11-602(b)(4). The proposal also incorporates wage investigation reforms from Act 397 of 2025, clarifying assessment periods, procedures, and remedies for violations of the Minimum Wage Act. Additionally, the rules clarify the Secretary's authority over state minimum wage and overtime claims and investigations.

Arkansas employers should monitor these changes closely as the shift from a 20-factor state test to the federal contractor standard may alter worker classification determinations and affect compliance obligations. Businesses utilizing independent contractors should review current arrangements to assess alignment with the new federal standard once finalized.

What to do next

  1. Review proposed rule changes to independent contractor classification standards
  2. Assess current workforce classifications against new federal standard
  3. Submit comments before the deadline closes

Archived snapshot

Apr 9, 2026

GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.

Summary of Arkansas Minimum Wage Act Proposed Rule Revision Stemming from the 2025 Regular Session of the General Assembly The proposed rules will amend the existing rules consistent with Acts 397, 737, and 743 of 2025 to: (1) Replace the existing 20-factor test for determining the status of a person as an employee or independent contractor with the federal standard (11 CAR § 11-602(b)(4)); (2) Incorporate the wage investigation reforms adopted by Act 397 of 2025 by clarifying the applicable assessment period, procedures, and remedies for violations of the Arkansas Minimum Wage Act (11 CAR § 11-1101(c)-(e)); (3) Clarify the authority of the Secretary of the Department of Labor and Licensing over state minimum wage and overtime claims and investigations; and (4) Make technical, grammatical, and stylistic changes to conform to the BLR Drafting Manual.

Named provisions

Independent Contractor Status Wage Investigation Procedures

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Last updated

Classification

Agency
AR DOL
Instrument
Consultation
Legal weight
Non-binding
Stage
Consultation
Change scope
Substantive
Document ID
11 CAR § 11-602(b)(4), 11 CAR § 11-1101(c)-(e)

Who this affects

Applies to
Employers
Industry sector
9211 Government & Public Administration
Activity scope
Minimum wage compliance Independent contractor classification Overtime wage claims
Geographic scope
US-AR US-AR

Taxonomy

Primary area
Employment & Labor
Operational domain
Compliance
Topics
Banking

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