LITTLE ROCK, Ark. — In Arkansas, voters approved a minimum wage increase in 2018, setting the new standard to $11 per hour. But can employers pay certain workers less than the federal minimum wage?
In 2009, members of Congress passed The Fair Standards Act, which set the minimum wage at a rate of $7.25 per hour for employees who are considered non-exempt. However, there are some exceptions to the act.
According to the U.S. Department of Labor, a company can pay workers who have certain disabilities, along with full-time students, student learners, and select citizens younger than age 20, less than the current federal minimum wage.
A common example of people who are paid less than minimum wage is those who receive tips in addition to a salary. Arkansas requires these workers to be paid a minimum of $2.63 per hour worked.
“The way that the tip minimum is supposed to work is, you're still supposed to come out at least making the federal minimum wage of $7.25 an hour. Your employer is to ensure that you earn $7.25 an hour considering your tips," explained Anna Pardo of the NC Justice group.
The Arkansas Code also states that an employer must pay the higher minimum wage, whether it’s the state or the federal amount.
Except for workers who receive tips, generally, all other employees of companies doing business in Arkansas should earn $11 for each hour on the job.
We can verify that technically, employers are able to pay some workers below the federal minimum wage with certain exceptions. States can, in turn, also adopt laws modifying this rule.