Federal Labor Law

• The Labor Standards Division within the Arkansas Department of Labor is responsible for administering the state's wage laws. The Arkansas labor laws cover all employers who conduct business within the state. In addition, Arkansas employers may also have to comply with the federal Fair Labor Standards Act. The Wage and Hour Division within the U.S. Department of Labor administers the Fair Labor Standards Act. According to the act, employers who conduct interstate business, engage in hospital or nursing home services, engage in educational services, or produce more than $500,000 of yearly profits must follow their state laws and the federal wage and hour laws. Government agencies must also follow both sets of laws. The federal Fair Labor Standards Act does not require employers to give their employees their last paycheck immediately upon discharge or resignation. Instead, as long as employers pay their employees by their regularly scheduled paydays, they have met their legal last-paycheck duties under federal law.
  
  

Arkansas Labor Law

• In the absence of any strict federal mandates, state labor agencies can pass more stringent requirements and last-paycheck duties. In Arkansas, employers are required to comply with the Arkansas Labor and Industrial Relations Code. Chapter 4 of the Labor and Industrial Relations Code allows the Director of the Department of Labor to assess civil penalties. Employers are required to pay back wages for each day of nonpayment, for up to 60 days.
  
  

Seven-Day Last-Paycheck Law

• According to the Arkansas Labor and Industrial Relations Code, to trigger the seven-day payment duty, employees have an obligation to request or demand their last wages within seven days. The code is silent as to whether an employee's request or demand must be in writing. If an employer terminates an employee and the terminated employee requests final payment of wages within seven days, his employer must pay him within seven days of the last date of employment. The seven-day requirement does not apply to voluntary resignations and involuntary terminations in which an employee fails to demand her last paycheck within seven days.
  
  

Exceptions

• If an employee fails to request or demand her last paycheck within seven days, her employer can pay her by his next regularly scheduled payday. Arkansas law requires employers to pay their employees at least twice per month. Furthermore, if an employee voluntarily terminated employment, her employer must give her a final paycheck by his next regularly scheduled payday.