Arkansas tip pooling laws & tipped minimum wage
In Arkansas, employers can pay tipped workers $2.63/hr as long as tips bring them to the $11.00 minimum — here's how that works and who can legally share your tips.
| Regular minimum wage | $11.00/hr |
| Minimum cash wage for tipped workers | $2.63/hr |
| Maximum tip credit | $8.37/hr |
| Tips belong to | Employees — always |
A tip credit lets an employer count your tips toward the minimum wage it owes you. Rates reviewed July 2026. Rates change — confirm with the Arkansas labor department. Not legal advice.
Arkansas sets its own tipped wage — but only for employers with 4 or more workers
Arkansas has its own minimum-wage law, the Arkansas Minimum Wage Act, which applies to employers with four or more employees. Under it the state minimum is $11.00 an hour, and a tipped worker can be paid a cash wage of $2.63 with a tip credit of up to $8.37, as long as tips bring the total to at least $11.00.
If your employer has fewer than four employees, the state law does not cover you and you fall under the federal Fair Labor Standards Act instead — a $2.13 cash wage, a $5.12 credit, and a $7.25 total floor. It is worth knowing which set of numbers applies to your workplace.
The tip credit requires notice, and shortfalls must be paid
An Arkansas employer may only take the tip credit if it tells you about it in advance: that your base cash wage is $2.63 and that tips are expected to bring you to at least $11.00 an hour. Without that notice, the employer is not entitled to the credit.
The credit also does not excuse a shortfall. In any week your $2.63 cash wage plus tips do not average $11.00 an hour, your employer must pay the difference. The Arkansas Department of Labor and Licensing can require an employer to produce records and pay you up to the full minimum if your tips came up short.
Where to bring a tip or wage claim in Arkansas
The Arkansas Department of Labor and Licensing, Labor Standards Division, enforces the state minimum-wage and tip rules, and you can file a complaint with it directly. For workplaces under federal coverage, or for claims you would rather bring federally, the U.S. Department of Labor Wage and Hour Division is the alternative.
On tip pooling, Arkansas follows the federal framework: a pool may be required among customarily tipped staff, you cannot be made to contribute more than is customary and reasonable, and managers, supervisors, and owners may never keep a share of your tips.
Tip pooling in Arkansas
Arkansas follows the federal baseline: employers may require tip pooling. If your employer takes the tip credit (pays $2.63/hr cash), the pool may only include customarily tipped workers — servers, bussers, bartenders, runners, hosts. Back-of-house can only be included if everyone is paid full minimum wage with no tip credit. Managers and supervisors are always excluded.
One federal rule applies everywhere: managers and supervisors can never take from a tip pool. Separately, credit card processing fees may only be deducted from tips where state law allows it.
What this means for your tip-out
Because part of your legal wage in Arkansas comes from tips, the employer's tip credit assumes those tips reached you. Use the tip-out calculator to split a shift by your house's percentages or by hours, and see standard tip-out percentages to check whether your house's rates are typical.
Arkansas tip law FAQs
What is the tipped minimum wage in Arkansas?
Employers in Arkansas may pay tipped employees a cash wage of $2.63/hr and claim a tip credit of up to $8.37/hr toward the $11.00 minimum wage. If tips don't close the gap in a workweek, the employer must make up the difference.
Is mandatory tip pooling legal in Arkansas?
Arkansas follows the federal baseline: employers may require tip pooling. If your employer takes the tip credit (pays $2.63/hr cash), the pool may only include customarily tipped workers — servers, bussers, bartenders, runners, hosts. Back-of-house can only be included if everyone is paid full minimum wage with no tip credit. Managers and supervisors are always excluded.
Can my manager take a share of the tip pool in Arkansas?
No. Federal law prohibits managers, supervisors, and owners from keeping any portion of employee tips in every state, including Arkansas. A manager may keep only tips they directly and solely earned (e.g., a table they personally served start to finish).
Does Arkansas’s minimum wage law apply to every employer?
No. The Arkansas Minimum Wage Act covers employers with four or more employees, where the tipped cash wage is $2.63 and the state minimum is $11.00. Employers with fewer than four employees fall under federal law instead — a $2.13 cash wage and a $7.25 total floor.
Who do I contact if my tips did not reach the minimum wage?
You can file a complaint with the Arkansas Department of Labor and Licensing, Labor Standards Division, which can require your employer to show pay records and make up any shortfall so you receive at least $11.00 an hour. The U.S. Department of Labor is an alternative for federally covered workplaces.