Final Paycheck Law — Arkansas

Frequently Asked Questions

• When must an employer pay a final paycheck in Arkansas?

  Arkansas law requires employers to issue a final paycheck by the employee's next regular payday after the employment ends. This applies whether the employee was terminated, laid off, or quit voluntarily.

• Is there a grace period for final paychecks in Arkansas?

  Yes. Arkansas provides a 7-day grace period after the next regular payday. If the employer pays within those 7 days, no double-wage penalty is triggered. However, payment is still technically late — the legal deadline remains the regular payday itself.

• What is the penalty for a late final paycheck in Arkansas?

  Under Ark. Code Ann. § 11-4-405, if an employer fails to pay final wages within 7 days of the next regular payday, the employer owes double the wages originally owed. If the original wage was $3,000, the employer owes $6,000 total.

• Does Arkansas require same-day final paycheck if an employee is fired?

  No. Unlike California, which requires immediate (same-day) payment upon termination, Arkansas only requires payment by the next regular payday regardless of whether the employee was fired or resigned.

• Does the final paycheck rule apply to employees who quit without notice?

  Yes. The Arkansas final paycheck rule applies equally whether an employee gives notice or leaves without notice, and whether the employer terminates or the employee resigns. The deadline is always the next regular payday.

• Can an employer withhold the final paycheck as leverage in Arkansas?

  No. Arkansas law does not permit withholding final wages as leverage. Unauthorized deductions or withheld wages may expose the employer to double-wage penalties and a wage claim with the Arkansas Department of Labor and Licensing.

• What can an employee do if their employer withholds a final paycheck in Arkansas?

  The employee can file a wage claim with the Arkansas Department of Labor and Licensing at labor.arkansas.gov. The ADLL's Labor Standards Division investigates wage complaints. An employee may also pursue a civil claim for double the wages owed.

• Does the final paycheck deadline apply to accrued vacation or PTO?

  It depends on the employer's policy. Arkansas does not require employers to pay out accrued vacation or PTO upon separation. However, if an employer's written policy promises payout, those amounts become wages and must be paid by the final paycheck deadline.

• Does the federal FLSA have a final paycheck deadline?

  No. The FLSA sets no specific deadline for final paychecks. Federal law only requires that wages be paid on the next regularly scheduled payday. Arkansas law is more specific and should be followed for employees working in Arkansas.

• Where is the Arkansas final paycheck law found?

  The final paycheck rule is in the Arkansas Wage Payment Act, Ark. Code Ann. § 11-4-405. Official guidance is available from the Arkansas Department of Labor and Licensing at labor.arkansas.gov/resources/faqs/.