Part of Ferry's 51-state tip laws guide

Arkansas tip laws (2026)

Arkansas's minimum wage is $11.00 an hour, and tipped workers can be paid as little as $2.63 in cash if tips cover the other $8.37. Arkansas has its own side-work rule: 20 minutes or more in a non-tipped job means full minimum wage for that whole hour.

Researched by Ferry's tip operations research teamReviewed How we research these pages
Rates as of Last reviewed

Arkansas at a glance

Tip credit allowed

Arkansas: $11.00 an hour minimum wage. Tipped staff can be paid $2.63 cash, with up to $8.37 counted from tips.

Arkansas tip and wage rates at a glance, as of Nov 3, 2026
State minimum wage$11.00/hrStatewide from .[1]
Tipped cash wage$2.63Plus up to $8.37 in tips = $11.00.[1]
Max tip credit$8.37Counted from tips.[1]
Tip poolingAllowedMandatory pools: it depends.[2]
Card-fee deductionPro rata onlyOnly the tip's share of the fee, under federal rules.[3]
Card tip payoutCard tips are due by the regular payday under federal law.Arkansas wages must be paid in full, with no strings attached.[3][4]
Local minimum wagesNoneState law blocks local rates.[5]

Rates verified against the Arkansas Department of Labor and Licensing, Division of Labor on . Rates as of . Tipped totals are worked out from the rates above. Download this data (CSV)

02The yes/no sheet

Can you do this in Arkansas?

In Arkansas you can take a tip credit of up to $8.37 an hour and can take out only the tip's share of a card fee. Each answer below carries its condition and an official source.

Yes state law allows itNo state law says noDepends read the conditionFederal rule no state rule, federal applies
What restaurant operators can and can't do with tips in Arkansas
NumberCan you…AnswerThe condition
01Take a tip credit against minimum wage?YesPay at least $2.63 cash and count up to $8.37 in tips. Tips must cover the gap.[1]
02Make staff join a tip pool?DependsArkansas describes splits on a basis employees agree to. Federal permission alone doesn't settle a pool the employer imposes.[2]
03Include bartenders, bussers, runners and hosts?DependsBussers can share. Bartender, food runner and host: splits run on a basis employees agree to. Credit pools need a tipped job, and federal limits on who shares still apply.[2][3]
04Include cooks and dishwashers?DependsArkansas talks about employee-agreed splits. Federally, cooks and dishwashers join a pool only if everyone gets full cash minimum wage and no managers share.[2][3]
05Give managers or supervisors a share?NoManagers and supervisors can't keep workers' tips or take pool shares. They keep only tips for service they alone provide.[3]
06Let an owner keep any of the tips?NoAn owner with 20% or more equity who actively manages counts as a manager. No employer may keep workers' tips.[3]
07Pick your own split (hours, points or percentages)?DependsThe employer can redistribute tips on a basis the employees agree on. Each worker's kept share counts as that worker's tips.[2]
08Take card processing fees out of tips?Pro rata (federal)Federal rule: only the actual proportional credit-card transaction fee may be deducted from charged tips; no deduction exceeding that fee or reducing required minimum wages; state law may forbid even that deduction.[3]
09Hold card tips until payday?DeadlineCard tips are due by the regular payday under federal law. Arkansas wages must be paid in full, with no strings attached.[3][4]
10Cover walkouts, breakage or register shortages from tips?NoNot from tips.[6][7][3][2]
11Keep a mandatory service charge for the house?DependsA mandatory service charge is not a tip, even when staff get it. It counts toward overtime but can't serve as a tip credit.[2][3]
12Pay tips on a payroll card?YesFederal payroll-card protections apply alongside state wage-payment rules. Offer another way to get paid too.[4][8]

03State vs federal

Arkansas vs federal law

Arkansas sets a stricter rule than federal law on 2 of the 10 rules below, starting with a $11.00 minimum wage against the federal $7.25. Where the two differ, the rule that is better for the worker applies.

Arkansas tip rules compared with federal rules (FLSA)
RuleFederal (FLSA)ArkansasComparison
Minimum wageStricterFederal$7.25[3]Arkansas$11.00[1]Stricter
Tipped cash wageStricterFederal$2.13[3]Arkansas$2.63[1]Stricter
Max tip creditHigher creditFederal$5.12[3]Arkansas$8.37[1]Higher credit
Who counts as tippedState ruleFederalMore than $30 a month in tips, customarily and regularly received in the occupation.[3]ArkansasWaiters, waitresses and some other customary tipped jobs qualify by name. Other jobs need over $20 a month in tips. Federal credit needs over $30.[2][3]State rule
Managers in the poolState ruleFederalManagers/supervisors meeting the executive duties test cannot keep employees’ tips or receive from pools; they may keep only tips received directly for services they directly and solely provide. No salary-level test is used for this tip restriction.[3]ArkansasManagers and supervisors can't keep workers' tips or take pool shares. They keep only tips for service they alone provide.[3]State rule
Kitchen in the poolState ruleFederalCooks and dishwashers may join a nontraditional mandatory pool only when all workers receive a direct cash wage of at least the full federal minimum wage and no tip credit is taken; employer/managers/supervisors remain excluded. State law may be stricter.[3]ArkansasArkansas talks about employee-agreed splits. Federally, cooks and dishwashers join a pool only if everyone gets full cash minimum wage and no managers share.[2][3]State rule
Card fees from tipsFederal appliesFederalOnly the actual proportional credit-card transaction fee may be deducted from charged tips; no deduction exceeding that fee or reducing required minimum wages; state law may forbid even that deduction.[3]ArkansasFederal rule applies.[3][2]Federal applies
Card tip payoutState ruleFederalCharged tips due by regular payday, without waiting for processor reimbursement. Employer-administered pools fully distributed by regular payday for the workweek/pay period; if the amount/distribution cannot be determined before payroll, distribute as soon as practicable afterward.[3]ArkansasCard tips are due by the regular payday under federal law. Arkansas wages must be paid in full, with no strings attached.[3][4]State rule
Mandatory service chargesState ruleFederalA compulsory service charge is not an FLSA tip. Amounts distributed to employees are wages that may satisfy wage obligations and must enter the regular rate for overtime. This federal wage classification does not decide contractual or state-law ownership.[3]ArkansasA mandatory service charge is not a tip, even when staff get it. It counts toward overtime but can't serve as a tip credit.[2][3]State rule
Overtime for tipped staffState ruleFederalFor covered nonexempt employees, overtime generally begins after 40 hours in a workweek. Use the full regular rate, at least the full federal minimum wage, not $2.13; the hourly tip credit is not increased for overtime. Voluntary tips above the tip credit are excluded; distributed service charges enter the regular rate.[3]ArkansasOvertime after 40 hours a week. The regular rate includes cash wage, tip credit and other pay. Tips above the credit stay out.[2][3][7]State rule

Every state starts from the same federal floor. Federal tip law baseline: the FLSA rules, rates and sources, and how Arkansas fits among the four tip credit classes.

04Wages

Minimum wage and the tip credit in Arkansas

In Arkansas employers can pay tipped staff $2.63 an hour and count up to $8.37 in tips toward the $11.00 minimum. If tips fall short, the employer makes up the difference.[1]

Worked example

One server, one slow 30-hour week in Arkansas

Minimum for the week: 30 × $11.00$330.00
Cash wage you pay: 30 × $2.63$78.90
Tips have to cover: 30 × $8.37$251.10
Tips actually earned$120.00
You top up the gap$131.10
Cash wageTips countedYour top-up

A busy week with $251.10 or more in tips needs no top-up. Every tip above that is the server's. Fictional worker and tips.

Tip credit conditions
Tipped job only, and the worker must actually get and keep the tips. Cash at least $2.63, total at least $11.00. Changes go in writing.[9][2]
Who counts as tipped
Waiters, waitresses and some other customary tipped jobs qualify by name. Other jobs need over $20 a month in tips. Federal credit needs over $30.[2][3]
Overtime
Overtime after 40 hours a week. The regular rate includes cash wage, tip credit and other pay. Tips above the credit stay out.[2][3][7]
Side work and dual jobs
Spend 20 minutes or more in a non-tipped job, and that whole hour gets full minimum wage. This is Arkansas's own rule.[2]

Other rates

Other minimum wage rates in Arkansas
RateHourly
Tier Covered employers with 4 or more employeesState act generally covers employers with at least 4 employees; statutory employee exemptions apply. Since .[1][10]$11.00
Youth or training Certified full-time studentNeeds an advance state certificate and full-time enrollment. Up to 20 hours in school weeks, 40 outside. Child labor limits apply. Rate set by formula: not less than 85% of applicable state minimum wage.[11]$9.35*

* Worked out by Ferry from the formula, using the $11.00 state minimum wage. Not an official figure.

Scheduled increases

No statewide increase with a published amount is on file as of .

Side work

The 20-minute rule

Arkansas still has its own side-work limit, even though the federal 80/20 rule is gone. Twenty minutes in a non-tipped job turns that whole hour into a full-minimum-wage hour.[2]

Under 20 minutes

  • The tip credit can still apply
  • Cash wage of at least $2.63

20 minutes or more

  • No tip credit for that hour
  • Full $11.00 for the entire hour

05Local rates

City and county minimum wages in Arkansas

Arkansas law doesn't let cities or counties set their own minimum wage, so $11.00 applies everywhere in the state.[5]

Local rates preempted[5]

06Tip pool

Who can be in the tip pool in Arkansas

Arkansas allows tip pools. Owners, managers and supervisors can't share in them. A tip pool collects tips and splits them among staff; a tip-out is one worker handing part of their tips to others.

Who can share in a tip pool in Arkansas, by role
RoleCan share?Condition
Front of house
ServerAllowedSplits run on a basis employees agree to. Credit pools need a tipped job, and federal limits on who shares still apply.[2][3]
BartenderDependsSplits run on a basis employees agree to. Credit pools need a tipped job, and federal limits on who shares still apply.[2][3]
BusserAllowedSplits run on a basis employees agree to. Credit pools need a tipped job, and federal limits on who shares still apply.[2][3]
Food runnerDependsSplits run on a basis employees agree to. Credit pools need a tipped job, and federal limits on who shares still apply.[2][3]
HostDependsSplits run on a basis employees agree to. Credit pools need a tipped job, and federal limits on who shares still apply.[2][3]
BarbackDependsSplits run on a basis employees agree to. Credit pools need a tipped job, and federal limits on who shares still apply.[2][3]
ExpoDependsSplits run on a basis employees agree to. Credit pools need a tipped job, and federal limits on who shares still apply.[2][3]
Back of house
CookDependsSplits run on a basis employees agree to. Credit pools need a tipped job, and federal limits on who shares still apply.[2][3]
DishwasherDependsSplits run on a basis employees agree to. Credit pools need a tipped job, and federal limits on who shares still apply.[2][3]
Leadership
Shift leadDependsSplits run on a basis employees agree to. Credit pools need a tipped job, and federal limits on who shares still apply.[2][3]
Manager or supervisorNot allowedCannot receive employees’ pooled tips. Actual ownership and management duties determine the restriction.[3]
OwnerNot allowedCannot receive employees’ pooled tips. Actual ownership and management duties determine the restriction.[3]
Managers and supervisors
Managers and supervisors can't keep workers' tips or take pool shares. They keep only tips for service they alone provide.[3]
Owners
An owner with 20% or more equity who actively manages counts as a manager. No employer may keep workers' tips.[3]
Back of house
Arkansas talks about employee-agreed splits. Federally, cooks and dishwashers join a pool only if everyone gets full cash minimum wage and no managers share.[2][3]
Who sets the percentages
The employer can redistribute tips on a basis the employees agree on. Each worker's kept share counts as that worker's tips.[2]
Cap on what a pool can take
No state rule. Federal rule applies: no federal percentage or amount cap for a valid mandatory pool; eligibility, notice and minimum wage rules still apply.[3][2]
Pooling allowed
Yes. Arkansas recognizes tip splits and employer redistribution on a basis employees agree to.[2]

07Put it to work

Setting up a tip pool in Arkansas

Under Arkansas rules, 6 of the 10 staff in this example can share a $1,200 pool. The table splits the same pool by percentage, by points and by hours.

The law decides who's in. You still have to run the split every shift and pay it out. That part is a math and payout job, and it's the same job whether you have one location or forty.
Saturday dinner pool$1,200.00
6 of 10 staff can share in Arkansas
By %
By points
By hours
Servers 67.1%Bar 14.6%Support 18.3%
The same $1,200.00 pool split three ways, using roles that can share in Arkansas
WhoBy %By pointsBy hours
MayaServer, 6 h, 10 pts$268.29$250.00$211.78
JordanServer, 6 h, 10 pts$268.29$250.00$211.76
PriyaServer, 6 h, 10 pts$268.29$250.00$211.76
SamBartender, 6 h, 8 pts$175.61$200.00$211.76
LuisBusser, 5 h, 5 pts$109.76$125.00$176.47
AvaFood runner, 5 h, 5 pts$109.76$125.00$176.47
TheoCook, 7 hNot in the pool. Out here: this pool includes servers paid with a tip credit.
KimCook, 7 hNot in the pool. Out here: this pool includes servers paid with a tip credit.
RafaDishwasher, 6 hNot in the pool. Out here: this pool includes servers paid with a tip credit.
DanaManager or supervisor, 2 h (ran food)Not in the pool. Cannot receive employees’ pooled tips.
Total$1,200.00$1,200.00$1,200.00

Fictional restaurant and staff. The guest-facing staff here are assumed to meet Arkansas's condition for sharing (see who can be in the tip pool, above). Percentages and point weights are examples, not a recommendation. Shares are rounded to the cent, and any leftover cent goes to the first server. Run your own numbers in the tip pooling calculator.

Support Pool contributors: Server $262.83 and Bartender $54.92, for a total of $317.75. Support Pool receivers, pooled by Day and distributed by Hours Worked: Jonah Kim, Busser, 6.50 hours, +$179.56. Sofia Nunez, Food Runner, 5.00 hours, +$138.19. Total 11.50 hours and $317.75.

Support pool split. Servers and bartenders pay into the support pool, split by hours worked.
Ferry Tip Manager

Ferry Tip Manager: support pool split by hours

Servers and bartenders pay into the support pool, and Tip Manager splits it by hours worked. Each person sees their share, with no spreadsheet at close.

Who it's for Full-service restaurants that tip out bussers, runners and bar backs

Book a demoSee Tip Manager
Run your own numbersPlug your staff and tips into the tip pooling calculator

08Service charges

Service charges vs tips in Arkansas

In Arkansas whether a mandatory service charge counts as a tip depends on the facts. A mandatory service charge is not a tip, even when staff get it.

Tips compared with service charges in Arkansas
QuestionOptionalTipMandatoryService charge
Who sets the amountThe guestThe business
Who it belongs toThe worker it was left for, or the poolA mandatory service charge is not a tip, even when staff get it. It counts toward overtime but can't serve as a tip credit.[2][3]
Can it go to staff?Yes, through the poolYes. Amounts paid to staff are wages, not tips.[3]
How it's taxed (federal)Tip income the worker reportsRegular wages, with payroll taxes[13][14]
Guest noticeNone neededGeneral consumer law prohibits material omissions with intent that others rely on them. Disclosure therefore depends on context; no restaurant-specific font or prescribed wording identified in reviewed wage rules and official agency materials.[12]
  1. Step 1Did the guest choose whether to pay it, and how much?
    YesIt's a tip. It belongs to staff.
    NoIt's a mandatory charge. Go to step 2.
  2. Step 2What does Arkansas say?Depends on the factsA mandatory service charge is not a tip, even when staff get it. It counts toward overtime but can't serve as a tip credit.[2][3]
  3. Step 3Check the cityNo city service charge rules on file for Arkansas.
Menu and receipt notice
General consumer law prohibits material omissions with intent that others rely on them. Disclosure therefore depends on context; no restaurant-specific font or prescribed wording identified in reviewed wage rules and official agency materials.[12]
Large-party auto gratuities
An automatic gratuity is not a tip, even when staff get it. It counts toward overtime but can't serve as a tip credit.[2][13][14]

Local service charge rules

No local service charge rules on file for Arkansas.

More on the difference: service charge vs tip.

09Card tips

Card tips in Arkansas: fees and payout timing

In Arkansas only the tip's share of the card processing fee can come out of a card tip, under federal rules. Payout deadline: card tips are due by the regular payday under federal law. Arkansas wages must be paid in full, with no strings attached.

Card processing fees
Pro rata (federal)Only the tip's share.

Federal law allows only the actual card fee on the tip. Arkansas rules don't expressly approve card-fee deductions and require workers keep their tips.[3][9]

When card tips have to land

  1. TonightGuest adds a tip On the card, at the table.
  2. CloseShift is tallied The pool is split by your rules.
  3. DeadlineArkansas rule Card tips are due by the regular payday under federal law. Arkansas wages must be paid in full, with no strings attached.[3][4]
  4. Last dayFinal pay Fired: all wages by the next regular payday, or double wages if still unpaid 7 days later. Quit: no faster deadline found.[15]

Paydays: Corporate employers pay semimonthly under Arkansas Code 11-4-401. Exempt managers and executives can be paid monthly. Other business types need a separate check.[16]

Paying tips on a payroll card

  • Allowed?YesFederal payroll-card protections apply alongside state wage-payment rules.[4]
  • Worker consent needed?DependsFederal worker choice applies. The state rule reviewed doesn't require separate written card consent.[8]
  • Free way to get the money?State ruleAt least one free withdrawal for each wage deposit loaded onto the card.[4]
  • Must you offer another option?YesFederal rule: at least one other way to get paid.[8]
  • Holding cash tipsState ruleThe credit depends on tips the worker actually gets and keeps. Treating tips as business income kills the credit.[2][3]
  • Tips shown on the pay stubDependsA changed hourly credit needs written notice. That's not the same as a full tip breakdown on every paystub.[9]

Alice Anderson, Server, Downtown. Direct tips +$980.25, indirect tips +$0.00, tip outs -$147.07, tips payable $833.18. Tip Payment history, all Automatic with status Success: 2026-10-29 $833.18, 2026-10-28 $783.19, 2026-10-27 $733.20.

Employee tip payout. Each person's direct tips, tip outs, and payable amount, then paid automatically.
Ferry Pay and Pay Card

Ferry Pay: each tip share, paid out digitally

Each person's direct tips, tip outs and payable amount in one view, then paid through Ferry Pay. No cash to keep on hand for payouts. Eligibility and fees apply.

Who it's for Operators who want to stop the nightly cash run

Book a demoSee Ferry PayAbout the Pay Card
Customer story: BJ's Restaurants
200+locations across 30 states run Tip Manager and Ferry Pay
66%+reduction in cash-carrying costs
“Since launching this card program, we've reduced our cash-carrying costs by over 66 percent”
Jake Guild, Senior Vice President & Chief Accounting Officer, BJ's Restaurants
Read the BJ's case study

10Records

Records and notices in Arkansas

Keep each tipped worker's tips and hours on record, shift by shift. Arkansas: at least three years for state payroll records.

Arkansas State

  • Tip records Payroll records plus tipped worker ID, reported tips, credit taken, and tipped and non-tipped hours. Changed credits get written notice.[9]
  • How long to keep them At least three years for state payroll records.[17]
  • Tip credit notice Required. Tell the worker in writing whenever the hourly credit changes from the week before. The federal notice also comes first.[9][3]
  • Posters and forms Division-approved Arkansas Minimum Wage Act notice posted conspicuously; Written notice when hourly tip-credit amount changes.[17][9]

Everywhere Federal

  • Tip records Maintain employee identity, time and pay records. Tip-credit employers additionally retain tipped employee, reported tips, credit amounts and hours/earnings by tipped and nontipped occupation. No-tip-credit employers operating mandatory pools record each recipient and weekly/monthly tips. IRS daily records/reporting are separate obligations.[3]
  • How long to keep them FLSA: payroll records at least three years; underlying wage-computation records two years. Tax retention is separate.[18]
  • Tip credit notice Oral or written notice must state cash wage; tip credit amount; credit cannot exceed actual tips; employee retains tips except valid traditional pool; credit unavailable until informed. Traditional pool contribution amounts also disclosed.[3]
  • A written pool policy Good practice, not a federal rule: who's in, how it splits, when it pays. Share it with staff. How to write one.
For workers

Think your tips were handled wrong in Arkansas?

Workers in Arkansas can file a tip or wage claim with the Arkansas Department of Labor and Licensing, Division of Labor (501-682-4599). Filing is free, and this page can't settle a dispute; the state can.[22]

Arkansas Department of Labor and Licensing, Division of Labor
Phone
501-682-4599[19]
Website
labor.arkansas.gov/labor/labor-standards/minimum-wage-and-overtime
How to file a claim

Retaliation: Firing or punishing a worker for a wage complaint is penalized, and each day it continues can count separately. Federal protections also apply.[20]

Penalties: Back wages, civil penalties of $50 to $1,000 per violation, and for willful violations, liquidated damages up to the back wages owed.[20][21][15][2]

Can they take this out of my tips?

  • Walkouts and dine-and-dashNot allowedFLSA-covered employers can't use tips to cover business costs. State wage-floor and kept-tip rules apply separately.[6][7][3]
  • BreakageNot allowedFLSA-covered employers can't use tips to cover business costs. State wage-floor and kept-tip rules apply separately.[6][7][3]
  • Register shortagesNot allowedFLSA-covered employers can't use tips to cover business costs. State wage-floor and kept-tip rules apply separately.[6][7][3]
  • UniformsNot allowedFLSA-covered employers can't use tips to cover business costs. State wage-floor and kept-tip rules apply separately.[6][7][3]
  • Card processing feesAllowedFederal proportional-fee limit and state actual-receipt/minimum-wage requirements apply.[3][2]
  • A manager's shareNot allowedEmployers, managers and supervisors cannot receive employee tip-pool shares.[3]

11Law changes

What changed in Arkansas tip law, and what's coming

No statewide increase with a published amount is on file for Arkansas as of . Most recent change: Ark. R. 2026-82 replaced prior minimum-wage rules; current claim/assessment procedures and Division authority now govern. Operative tip-credit/pool provisions retained ().

  1. ChangedArk. R. 2026-82 replaced prior minimum-wage rules; current claim/assessment procedures and Division authority now govern. Operative tip-credit/pool provisions retained.[22]

Key statutes

  • Arkansas Code 11-4-201 et seq., Minimum Wage Act
  • 11 CAR 11-705, tipped occupations, dual jobs, pools and overtime
  • 11 CAR 11-201/202, records and credit notice
  • Arkansas Code 11-4-403(f)/405, cards and final pay, Act 853 of 2019
  • Act 643 of 2017 §§ 2–3, local preemption

Not covered here? Ask the Arkansas Department of Labor and Licensing, Division of Labor at 501-682-4599 or on labor.arkansas.gov/labor/labor-standards/minimum-wage-and-overtime.

How the rules got here

Three laws that shape Arkansas tips

Arkansas's current setup comes from a local wage ban in 2017, a final-pay change in 2019 and the $11.00 minimum in 2021.[5][15][19][1]

  1. 2017
    In effectAct 643 Cities and counties can't set wages above federal requirements. Existing minimum wage ordinances were grandfathered.[5]
  2. In effectAct 853 Fired workers get all wages by the next regular payday, or double wages after 7 more days.[15]
  3. In effect$11.00 minimum Issue 5 takes effect. Still the current rate, with a $2.63 tipped cash wage.[19][1]

12FAQ

Arkansas tip law questions

Plain answers to the 8 questions restaurant owners and staff ask most about Arkansas tip law, each linked to its source.

What is Arkansas's tipped minimum wage?

$2.63 an hour in cash, with kept tips bringing the total to at least $11.00. Coverage and exemptions still matter.[1][2][9]

What is the 20-minute rule?

If a tipped worker spends 20 minutes or more of an hour in a job not recognized as tipped, that entire hour gets the full minimum wage.[2]

Can servers split tips with bussers?

Yes. Arkansas recognizes splits, including waiters sharing with bussers, and lets the employer redistribute tips on a basis the employees agree on.[2]

Is a mandatory service charge a tip?

No. Arkansas's rule says a mandatory charge is not a tip, even if it's paid out to staff.[2]

Does a change in the tip credit need notice?

Yes. The employer tells the worker in writing whenever the hourly tip credit changes from the week before.[9]

Can wages go on a payroll card?

Yes. Arkansas allows a preloaded debit card with at least one free withdrawal per wage deposit. Federal rules also require another way to get paid.[4][8]

When is final pay due after a firing?

By the next regular payday. If it's still unpaid seven days after that payday, the employer owes double wages.[15]

How long are payroll records kept?

At least three years. Tipped-worker records include reported tips, the credit taken, and tipped and non-tipped hours.[9][17]

13Compare

How Arkansas compares with nearby states

Arkansas borders Louisiana, Mississippi, Missouri, Oklahoma, Tennessee and Texas. Missouri pays a higher minimum wage than Arkansas's $11.00. Running locations on both sides of a line? Each one follows its own state's rules.

Neighboring states

States with the same rules

Same tip credit class as Arkansas: Tip credit, cash wage above federal.

Compare all states in one table

The law decides who's in. Ferry runs the split.

See how operators set pool rules in Ferry Tip Manager and pay tips out without a cash run. Bring your own Arkansas setup.

Book a demoTry the tip pooling calculator

14Sources

Sources for Arkansas tip laws

Every figure on this page links to one of these 22 sources: 18 for Arkansas and 4 for the federal baseline. They are statutes, regulations and government agency pages, each with the date it was checked.

  1. 1Minimum Wages for Tipped Employees, July 1, 2026U.S. Department of Labor · Official source · Page updated · Checked Pinpoint: Arkansas rowwww.dol.gov/agencies/whd/state/minimum-wage/tipped
    What the source says

    “Arkansas $11.00 $8.37 $2.63 Not specified”

  2. 211 CAR § 11-705. Tipped employeesCode of Arkansas Rules · Official source · Page updated · Checked Pinpoint: Ark.R. 2026-82 effective July 20, 2026; 11 CAR 11-705(b)(1); Ark.R. 2026-82 effective July 20, 2026; 11 CAR 11-705(b)(1)(B); Ark.R. 2026-82 effective July 20, 2026; 11 CAR 11-705(b)(1)(C)codeofarrules.arkansas.gov/Rules/Rule?titleID=11&chapterID=35&subchapterID=47&partID=328&levelType=section&subPartID=3491&sectionID=21657
    What the source says

    “The tip credit is only available for those occupations in which tips have been customarily and usually recognized as part of the remuneration for hiring purposes.”

    “This includes waiters, waitresses, bellhops, beauty operators, and barbers, provided they actually receive and retain tips.”

    “if the employee actually receives tips in excess of twenty dollars ($20.00) per month.”

  3. 3Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)U.S. Department of Labor · Official source · Checked Pinpoint: Tip Credit, paragraph 2; opening paragraph; Typical Problems, Overtime Problems, item 1www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa
    What the source says

    “An employer must pay a tipped worker at least $2.13 per hour under the FLSA.”

    “the federal minimum wage, which is currently $7.25 per hour.”

    “The maximum tip credit that an employer can currently claim is $5.12 per hour: ($7.25 - $2.13 direct (or cash) wage = $5.12).”

  4. 411 CAR § 11-701. GenerallyCode of Arkansas Rules · Official source · Page updated · Checked Pinpoint: Ark.R. 2026-82 effective July 20, 2026; 11 CAR 11-701(b)(2); Ark.R. 2026-82 effective July 20, 2026; 11 CAR 11-701(a)(2); Ark.R. 2026-82 effective July 20, 2026; 11 CAR 11-701(a)(3)codeofarrules.arkansas.gov/Rules/Rule?titleID=11&chapterID=35&subchapterID=47&partID=328&levelType=section&subPartID=3491&sectionID=21653
    What the source says

    “Paid finally and unconditionally.”

    “Payment may also be made by providing a debit card preloaded with the wage payment in compliance with Arkansas Code § 11-4-403(f).”

    “If wages are paid by providing a preloaded debit card, at least one (1) free withdrawal shall be available for the funds for each deposit of wages loaded onto the debit card.”

  5. 5Act 643 of 2017, employer benefit and wage preemptionArkansas General Assembly · Official source · Page updated 2017 · Checked Pinpoint: Act 643 § 2(b), statutory preemption; Act 643 § 3, grandfathered requirementsarkleg.state.ar.us/Home/FTPDocument?path=%2FACTS%2F2017R%2FPublic%2FACT643.pdf
    What the source says

    “require an employer to provide to an employee a minimum or living wage rate or employment benefit”

    “Section 2 of this act does not preempt any state law or local minimum wage ordinance requirements in effect on the effective date of this act.”

  6. 611 CAR § 11-702. Deductions from minimum wageCode of Arkansas Rules · Official source · Page updated · Checked Pinpoint: Ark.R. 2026-82 effective July 20, 2026; 11 CAR 11-702(b)codeofarrules.arkansas.gov/Rules/Rule?titleID=11&chapterID=35&subchapterID=47&partID=328&levelType=section&subPartID=3491&sectionID=21654
    What the source says

    “An employer may not make deductions from the applicable minimum wage rate for other items, including but not limited to the following:”

  7. 711 CAR § 11-704. Allowance for board, lodging, apparel, or other items and servicesCode of Arkansas Rules · Official source · Page updated · Checked Pinpoint: Ark.R. 2026-82 effective July 20, 2026; 11 CAR 11-704(e)(2); 11-704(a)(2); allowance cannot satisfy overtime wagescodeofarrules.arkansas.gov/Rules/Rule?titleID=11&chapterID=35&subchapterID=47&partID=328&levelType=section&subPartID=3491&sectionID=21656
    What the source says

    “Apparel that has a company or business logo shall be considered primarily for the benefit of the employer.”

    “This allowance shall not be included in the wages for hours worked in excess of forty (40) hours per workweek.”

  8. 8What is a payroll card?Consumer Financial Protection Bureau · Official source · Page updated · Checked Pinpoint: paragraph following definitionwww.consumerfinance.gov/ask-cfpb/what-is-a-payroll-card-en-401
    What the source says

    “Your employer can’t require you to receive your wages on a payroll card.”

    “Your employer has to offer you at least one alternative to a payroll card.”

  9. 911 CAR § 11-202. Special circumstancesCode of Arkansas Rules · Official source · Page updated · Checked Pinpoint: Ark.R. 2026-82 effective July 20, 2026; Ark.R. 2026-82 effective July 20, 2026; 11 CAR 11-202(c)(3)(C); Ark.R. 2026-82 effective July 20, 2026; 11 CAR 11-202(c)(1)codeofarrules.arkansas.gov/Rules/Rule?titleID=11&chapterID=35&subchapterID=47&partID=328&levelType=section&subPartID=3486&sectionID=21641
    What the source says

    “at least two dollars and sixty-three cents ($2.63) per hour is paid in wages other than gratuities to the employee”

    “The amount per hour which the employer takes as a tip credit shall be reported to the employee in writing each time it is changed from the amount per hour taken in the preceding week.”

    “A symbol, letter, or other notation placed on the pay records identifying each employee whose wage is determined in part by tips;”

  10. 1011 CAR § 11-601. Employer coverage and exemption from minimum wage and overtimeCode of Arkansas Rules · Official source · Page updated · Checked Pinpoint: Ark.R. 2026-82 effective July 20, 2026codeofarrules.arkansas.gov/Rules/Rule?titleID=11&chapterID=35&subchapterID=47&partID=328&levelType=section&subPartID=3490&sectionID=21649
    What the source says

    “for any workweek in which fewer than four (4) employees are employed.”

  11. 1111 CAR § 11-301. Conditions of employmentCode of Arkansas Rules · Official source · Page updated · Checked Pinpoint: Ark.R. 2026-82 effective July 20, 2026; 11 CAR 11-301(a)codeofarrules.arkansas.gov/Rules/Rule?titleID=11&chapterID=35&subchapterID=47&partID=328&levelType=section&subPartID=3487&sectionID=21643
    What the source says

    “An employer may pay a full-time student a sub-minimum wage of not less than eighty-five percent (85%) of the applicable minimum wage rate, provided the following conditions are met:”

  12. 12Attorney General complaint, material omissions, paragraph 242Arkansas Attorney General · Official source · Page updated · Checked Pinpoint: AG complaint ¶242 quotes § 4-88-108arkansasag.gov/wp-content/uploads/2023-03-28-TikTok-Lawsuit-Cleburne-Filemark.pdf
    What the source says

    “concealment, suppression, or omission of any material fact with the intent that others rely upon the concealment, suppression, or omission.”

  13. 13Tip recordkeeping and reportingInternal Revenue Service · Official source · Checked Pinpoint: Service charges are not tips, paragraph 2; qualified tips deduction, net-income limit; tip income, Social Security/Medicarewww.irs.gov/businesses/small-businesses-self-employed/tip-recordkeeping-and-reporting
    What the source says

    “Service charges (also referred to as “auto-gratuities”), when distributed to an employee, are generally treated as wages paid by the employer to the employee rather than tips paid by the customer.”

    “For self-employed individuals, the deduction may not exceed the individual’s net income (without regard to this deduction) from the trade or business in which the tips were earned.”

    “These amounts are subject to federal income tax and generally are also subject to Social Security and Medicare taxes.”

  14. 14Revenue Ruling 2012-18Internal Revenue Service · Official source · Page updated 2012 · Checked Pinpoint: Q 1/A 1, four distinguishing factors; p. 1, ruling headingwww.irs.gov/pub/irs-drop/rr-12-18.pdf
    What the source says

    “compulsion; (2) the customer must have the unrestricted right to determine the amount; (3) the payment should not be the subject of negotiation or dictated by employer policy; and (4) generally, the customer has the right to determine who receives the payment.”

    “Rev. Rul. 2012-18”

  15. 15Act 853 of 2019, minimum-wage remedies and wage paymentArkansas General Assembly · Official source · Page updated · Checked Pinpoint: Act 853 § 7, 11-4-405(a), PDF page 4; Act 853 § 7, 11-4-405(b), PDF page 4; Act 853 § 3, 11-4-218(a)(2), PDF page 2arkleg.state.ar.us/Home/FTPDocument?path=%2FACTS%2F2019R%2FPublic%2FACT853.pdf
    What the source says

    “An employer that discharges an employee is required to pay all wages due by the next regular payday.”

    “payday shall owe the employee double the wages due.”

    “to be paid as liquidated damages if the employee proves the violation was willful.”

  16. 16Statutes Wage and Hour, historical agency compilationArkansas Department of Labor · Official source · Checked Pinpoint: Arkansas Code 11-4-401(a)www.labor.arkansas.gov/wp-content/uploads/2020/06/StatutesWageHour.pdf
    What the source says

    “shall pay the wages of the employees semimonthly.”

  17. 1711 CAR § 11-201. General requirementsCode of Arkansas Rules · Official source · Page updated · Checked Pinpoint: Ark.R. 2026-82 effective July 20, 2026; 11 CAR 11-201(c); Ark.R. 2026-82 effective July 20, 2026; 11 CAR 11-201(f)(1)codeofarrules.arkansas.gov/Rules/Rule?titleID=11&chapterID=35&subchapterID=47&partID=328&levelType=section&subPartID=3486&sectionID=21640
    What the source says

    “Each employer shall maintain and preserve the records required by this part for a period of at least three (3) years.”

    “shall post and keep posted a notice approved by the division explaining and summarizing the requirements of the act and this part.”

  18. 18Fact Sheet #21: Recordkeeping Requirements under the Fair Labor Standards Act (FLSA)U.S. Department of Labor · Official source · Page updated · Checked Pinpoint: Posting, paragraph 1www.dol.gov/agencies/whd/fact-sheets/21-flsa-recordkeeping
    What the source says

    “Each employer shall preserve for at least three years payroll records, collective bargaining agreements, sales and purchase records.”

    “Employers must display an official poster outlining the provisions of the Act, available at no cost from local offices of the Wage and Hour Division and toll-free, by calling 1-866-4USWage (1-866-487-9243).”

    “Records on which wage computations are based should be retained for two years,”

  19. 19Minimum Wage and OvertimeArkansas Department of Labor and Licensing · Official source · Checked Pinpoint: General statewide minimum and effective datelabor.arkansas.gov/labor/labor-standards/minimum-wage-and-overtime
    What the source says

    “Effective January 1, 2021, the minimum wage in Arkansas is $11.00 per hour.”

    “Minimum Wage and Overtime”

    “Contact the Labor Standards Division at (501) 682-4599”

  20. 2011 CAR § 11-1103. Civil money penaltiesCode of Arkansas Rules · Official source · Page updated · Checked Pinpoint: Ark.R. 2026-82 effective July 20, 2026; 11 CAR 11-1103(b)(1); Ark.R. 2026-82 effective July 20, 2026; 11 CAR 11-1103(a)(7); 11-1103(a)(7)(A)codeofarrules.arkansas.gov/Rules/Rule?titleID=11&chapterID=35&subchapterID=47&partID=328&levelType=section&subPartID=3495&sectionID=21675
    What the source says

    “The amount of any civil money penalty shall be not less than fifty dollars ($50.00) and not more than one thousand dollars ($1,000) for each violation.”

    “Willfully discharging or in any other manner willfully discriminating against any employee because the employee has:”

    “Made a complaint to his or her employer or to the division regarding compliance with the act or this part;”

  21. 2111 CAR § 11-1104. Liquidated damagesCode of Arkansas Rules · Official source · Page updated · Checked Pinpoint: Ark.R. 2026-82 effective July 20, 2026; 11 CAR 11-1104(a); Ark.R. 2026-82 effective July 20, 2026; 11 CAR 11-1104(b)codeofarrules.arkansas.gov/Rules/Rule?titleID=11&chapterID=35&subchapterID=47&partID=328&levelType=section&subPartID=3495&sectionID=21676
    What the source says

    “may assess liquidated damages to be paid an employee in an amount up to but not greater than the back wages assessed on behalf of the employee.”

    “Liquidated damages shall be assessed only for willful violations of the Minimum Wage Act of the State of Arkansas, Arkansas Code § 11-4-201 et seq., or this part.”

  22. 2211 CAR § 11-1101. Employee claims: assessment period, procedures, remediesCode of Arkansas Rules · Official source · Page updated · Checked Pinpoint: Ark.R. 2026-82 effective July 20, 2026; 11 CAR 11-1101(a); 11-1101(c)codeofarrules.arkansas.gov/Rules/Rule?titleID=11&chapterID=35&subchapterID=47&partID=328&levelType=section&subPartID=3495&sectionID=21673
    What the source says

    “Division of Labor of the Department of Labor and Licensing”

    “An employee may file a claim with the Division of Labor of the Department of Labor and Licensing charging that an employer has violated Arkansas Code § 11-4-210 or Arkansas Code § 11-4-211”

    “The assessment period shall be for the two (2) years preceding the filing of the claim”

15Methodology

How we research these pages

Every figure on this page comes from an official source, a statute, a regulation or a government agency page, and links to it where it is used. Ferry checks the page against those sources on a schedule and logs every change.

  1. 1

    Official sources only

    Statutes, regulations, state labor agencies, city ordinances and the U.S. Department of Labor. No vendor blogs, no AI answers, no secondary summaries as the only source.

  2. 2

    Every figure is linked

    Each rate and rule carries a numbered link to the statute or agency page behind it, with the exact pinpoint and, where available, a link that opens at the sentence itself.

  3. 3

    Re-checked on a schedule

    Every page is re-checked each January and July, and whenever a state or city changes a rate. Cash wage plus tip credit is checked against the minimum wage on every build.

  4. 4

    Gaps are left out, not guessed

    If a rule can't be confirmed from an official source, it isn't shown. The page points to the state agency instead.

What changed on this page

  1. First version of this page. Every figure was checked against the official sources listed on this page.

Researched by Ferry's tip operations research team. Last reviewed .

Changes to the law itself are listed in What changed and what's coming.

16Every state

Tip laws in every state

Pick any state for its tip credit, tip pool, service charge and card tip rules. Each chip shows the state's tip credit class.

  • No tip creditNo tip credit
  • Above $2.13Tip credit, cash wage above federal
  • $2.13 cashTip credit, federal cash wage
  • FederalFederal rates apply

51 of 51 state pages. Open the master guide for the federal baseline, tip credit classes and the full comparison table.