Federal & State Regulations | Tips - Arkansas | J. J. Keller® Compliance Network

Summary of difference between federal and state regulations

There are certain instances where employers can pay employees at a rate lower than the minimum hourly wage specified by the federal Fair Labor Standards Act. The most common instance pertains to an employee who earns tips. The employer can deduct the amount of the tips (but only up to a certain maximum amount) from the hourly wage.

Arkansas Statute §11-4-212(a) and (b) permit tip crediting up to 58 percent of the minimum wage for workers who actually receive tips.