Arkansas Minimum Wage 2026
The minimum wage in Arkansas is $11.00 per hour in 2026, effective January 1, 2021. Tipped employees can be paid a cash wage of $2.63 per hour, as long as tips bring them to the full minimum.
What is the minimum wage in Arkansas in 2026?
The Arkansas minimum wage is $11.00 per hour in 2026, a rate that has not moved since January 1, 2021. It is the final step of Issue 5, a 2018 ballot initiative that raised the wage from $8.50 to $9.25 in 2019, $10.00 in 2020, and $11.00 in 2021.
Issue 5 did not include inflation indexing, so Arkansas has now gone five full years without an increase. The rate still sits well above the federal $7.25 minimum, but its purchasing power has eroded steadily, and market wages in most Arkansas metros have moved past it.
Tipped minimum wage in Arkansas
The tipped minimum wage in Arkansas is $2.63 per hour in direct cash wages. Tips must bring each tipped employee up to the full $11.00 per hour; when they fall short in a workweek, the employer pays the difference.
Because the $2.63 cash wage has been frozen alongside the full rate, the tip credit math has not changed since 2021. That stability is convenient for payroll, but it also means restaurants competing for staff in Little Rock or Fayetteville are usually guaranteeing well above the legal floor to fill shifts.
Arkansas minimum wage history: 2020 to 2026
| Year | Minimum wage | Tipped wage |
|---|---|---|
| 2020 | $10.00 | $2.63 |
| 2021 | $11.00 | $2.63 |
| 2022 | $11.00 | $2.63 |
| 2023 | $11.00 | $2.63 |
| 2024 | $11.00 | $2.63 |
| 2025 | $11.00 | $2.63 |
| 2026 | $11.00 | $2.63 |
Upcoming minimum wage increases in Arkansas
No increases are scheduled. Arkansas law contains no inflation indexing and no future steps, so the $11.00 rate stays put unless voters approve a new ballot initiative or the legislature acts.
Ballot initiatives are the realistic path to change: both of Arkansas's modern minimum wage increases (2014 and 2018) came from voters rather than the General Assembly. Employers building multi-year budgets can treat $11.00 as stable but should watch election cycles.
Minimum wage by city in Arkansas
Arkansas preempts local minimum wages, so no city or county can set its own rate. The $11.00 state minimum applies uniformly from Little Rock to the smallest town.
The real wage story is regional. Northwest Arkansas, anchored by Fayetteville, Springdale, Rogers, and Bentonville, hosts major corporate and retail headquarters, and hourly pay there routinely runs several dollars above the state floor even for entry-level roles.
State rate applies
State rate; northwest Arkansas corporate and retail HQ market pushes real wages higher
State rate applies
State rate applies
What Arkansas employers need to know
Coverage
The Arkansas minimum wage applies to employers with 4 or more employees. Smaller employers generally fall under the federal $7.25 minimum through the FLSA where it applies.
Tipped employees
You may pay $2.63 in cash wages only if tips reliably bring total pay to $11.00 per hour each workweek. Track reported tips per pay period and top up any shortfall.
Overtime
Arkansas follows the federal standard: 1.5x the regular rate for hours over 40 in a workweek. There is no daily overtime requirement.
Posting and records
Post the current Arkansas Department of Labor and Licensing minimum wage notice and keep payroll records documenting hours, wages, and tip credits claimed.
How other states compare
See how Arkansas's $11.00 rate stacks up against other state minimum wages in 2026, or browse the full minimum wage index for all 50 states.
Last verified:
Sources: the US Department of Labor's state minimum wage table and official announcements from the Arkansas labor department. Minimum wage laws change frequently; confirm current rates with those sources or legal counsel before setting pay.
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