Firing an Employee in Arkansas (2026)
Reviewed by DocDraft Legal Team · Arkansas · Last updated August 19, 2026
Ending employment is governed by a federal floor, but Arkansas sets its own final-pay timing and penalty. When you discharge an employee in Arkansas, all wages due must be paid by the next regular payday under Arkansas Code 11-4-405, as amended by Act 853 of 2019. If those wages are not paid within seven days of that next regular payday, the employer owes double the wages due. Arkansas has no statute requiring the payout of accrued vacation or PTO, so a written policy or contract controls whether it is owed. Arkansas is an at-will state, but you may not fire for an illegal reason such as discrimination or retaliation. Wage complaints go to the Arkansas Department of Labor and Licensing, Labor Standards Division.
When is a final paycheck due after firing someone in Arkansas?
By the next regular payday. Under Arkansas Code 11-4-405, as amended by Act 853 of 2019, an employer that discharges an employee must pay all wages due by the next regularly scheduled payday. Arkansas does not require same-day payment at the moment of termination the way some states do.
Does Arkansas require paying out unused vacation or PTO when you fire someone?
No, not by statute. Arkansas has no law requiring employers to pay out accrued, unused vacation or PTO at separation. Whether it is owed depends on your written policy, handbook, or contract. If a policy promises the payout, that promise is enforceable and the unpaid amount can become a wage claim.
Is Arkansas an at-will state, and can you fire without cause?
Yes. Arkansas is an at-will state, so either party can end employment without cause or advance notice. But you cannot fire for an illegal reason: discrimination or retaliation under the Arkansas Civil Rights Act and federal law, retaliation for protected activity, or a reason that breaches a contract. Public-policy exceptions also apply.
What is the penalty for a late final paycheck in Arkansas?
Under Arkansas Code 11-4-405, if a discharged employee's wages are not paid within seven days of the next regular payday, the employer owes the employee double the wages due. This double-wages penalty is a strong incentive to have the final check ready and delivered on time.
Arkansas's Next-Payday Final-Pay Rule, Double-Wages Penalty, and Policy-Governed PTO
Arkansas regulates separation pay through the Department of Labor and Licensing, Labor Standards Division. When you discharge an employee, all wages due are payable by the next regular payday under Arkansas Code 11-4-405, which was rewritten by Act 853 of 2019 to apply uniformly to employers rather than only to railroads and corporations under the older version of the statute. When an employee quits, Arkansas sets no separate statutory deadline, so the wages are likewise paid on the next regular payday as a matter of practice. The teeth in the statute are its penalty: if the discharged employee's wages are not paid within seven days of that next regular payday, the employer owes double the wages due. Arkansas has no statute requiring the payout of accrued vacation or PTO, so a written policy, handbook, or contract controls whether unused leave is owed at separation; a promised payout is enforceable as wages. Arkansas has no state mini-WARN act, so only the federal WARN Act applies to mass layoffs. Wage complaints are filed with the Arkansas Department of Labor and Licensing, Labor Standards Division.
Relevant Laws
Payment on Discharge (Arkansas Code 11-4-405)
Requires an employer that discharges an employee to pay all wages due by the next regular payday. If those wages are not paid within seven days of the next regular payday, the employer owes the employee double the wages due. Amended by Act 853 of 2019 to apply broadly to employers.
Accrued Vacation and PTO (Policy Governs in Arkansas)
Arkansas has no statute requiring the payout of accrued, unused vacation or PTO at separation. Whether it is owed is governed by the employer's written policy, handbook, or contract. A promised payout is enforceable as wages and can be pursued as a wage claim if withheld.
At-Will Employment and Its Exceptions in Arkansas
Arkansas follows the at-will doctrine, so employment can end without cause or notice, subject to exceptions for discrimination and retaliation under the Arkansas Civil Rights Act, protected-activity retaliation, contract terms, and public policy. Arkansas has no state mini-WARN mass-layoff notice law.
Federal WARN Act (Mass-Layoff Notice)
The federal Worker Adjustment and Retraining Notification Act sets the national floor for advance notice, requiring 60 days written notice for a plant closing or mass layoff at employers with 100 or more employees. Arkansas has no stricter state equivalent, so the federal rule applies.
Regional Variances
Arkansas Termination Pay Table
Final pay if fired or laid off
Due by the next regular payday under Arkansas Code 11-4-405, as amended by Act 853 of 2019. Arkansas does not require payment at the moment of termination; the deadline is the next regularly scheduled payday. The obligation applies to employers generally, not only railroads or corporations as under the older version of the statute.
Final pay if the employee quits
Arkansas sets no separate statutory deadline for wages after a voluntary quit, so final wages are paid on the next regular payday as a matter of practice. The quit timeline is the same next-payday schedule as a firing, without the specific double-wages penalty trigger that section 11-4-405 attaches to a discharge.
Accrued vacation and PTO payout
Policy governs. Arkansas has no statute requiring a payout of accrued, unused vacation or PTO at separation. Whether it is owed depends on the employer's written policy, handbook, or contract; a promised payout is enforceable as wages, while a clearly stated forfeiture policy is generally permitted.
Late-pay double-wages penalty
Under Arkansas Code 11-4-405, if a discharged employee's wages are not paid within seven days of the next regular payday, the employer owes the employee double the wages due. This penalty makes prompt delivery of the final check the safest course for employers.
Suggested Compliance Checklist
Confirm a lawful, non-discriminatory reason for the termination
Before you notify the employee days after startingVerify the decision is not based on a protected characteristic or protected activity and does not violate public policy under the Arkansas Civil Rights Act and federal law. Arkansas is at-will, but firing for an illegal reason exposes you to a wrongful-discharge claim. Review any contract or handbook terms that limit at-will termination.
Prepare the final paycheck to meet the Arkansas deadline
Ready by the next regular payday days after startingCalculate all final wages so the check is complete and delivered by the next regular payday under Arkansas Code 11-4-405. Include any accrued PTO your written policy promises. If the wages stay unpaid seven days past that payday, the employer owes double the wages due.
Check your PTO policy for a payout obligation
Before issuing the final check days after startingArkansas has no statutory PTO-payout mandate, so review your written policy, handbook, or contract to decide whether accrued, unused vacation must be paid out. If a payout is promised, include it in the final wages, because an unpaid promise can become a wage claim before the Labor Standards Division.
Check whether the federal WARN Act applies
At least 60 days before a mass layoff days after startingArkansas has no state mini-WARN law, so only the federal WARN Act applies. If the separation is part of a plant closing or mass layoff at an employer with 100 or more employees, confirm whether the 60-day advance written notice requirement is triggered before you act.
Document the decision and complete offboarding
On or before the last day days after startingRetain performance records and the reason for the decision, collect company property, cut off system access, and coordinate the end of benefits, including COBRA where it applies. Keep proof that the final wages were delivered on time. An employment attorney can help if the termination is contested or high-risk.
| Task | Description | Document | Days after starting |
|---|---|---|---|
| Confirm a lawful, non-discriminatory reason for the termination | Verify the decision is not based on a protected characteristic or protected activity and does not violate public policy under the Arkansas Civil Rights Act and federal law. Arkansas is at-will, but firing for an illegal reason exposes you to a wrongful-discharge claim. Review any contract or handbook terms that limit at-will termination. | - | Before you notify the employee |
| Prepare the final paycheck to meet the Arkansas deadline | Calculate all final wages so the check is complete and delivered by the next regular payday under Arkansas Code 11-4-405. Include any accrued PTO your written policy promises. If the wages stay unpaid seven days past that payday, the employer owes double the wages due. | - | Ready by the next regular payday |
| Check your PTO policy for a payout obligation | Arkansas has no statutory PTO-payout mandate, so review your written policy, handbook, or contract to decide whether accrued, unused vacation must be paid out. If a payout is promised, include it in the final wages, because an unpaid promise can become a wage claim before the Labor Standards Division. | - | Before issuing the final check |
| Check whether the federal WARN Act applies | Arkansas has no state mini-WARN law, so only the federal WARN Act applies. If the separation is part of a plant closing or mass layoff at an employer with 100 or more employees, confirm whether the 60-day advance written notice requirement is triggered before you act. | - | At least 60 days before a mass layoff |
| Document the decision and complete offboarding | Retain performance records and the reason for the decision, collect company property, cut off system access, and coordinate the end of benefits, including COBRA where it applies. Keep proof that the final wages were delivered on time. An employment attorney can help if the termination is contested or high-risk. | - | On or before the last day |
Frequently Asked Questions
No. Neither Arkansas nor federal law requires severance pay. It is owed only if an employment contract, company policy, or collective bargaining agreement promises it, or if you offer it in exchange for a signed release of claims. If you do promise severance, pay it on the stated terms, because an unpaid promise can become a wage claim in Arkansas.
No. Arkansas has not enacted a state mini-WARN law, so only the federal WARN Act applies. Federal WARN requires 60 days advance written notice for a plant closing or mass layoff at employers with 100 or more employees. Below that federal threshold, Arkansas imposes no separate advance-notice requirement for layoffs.
Yes, if the firing was for an illegal reason. Even though Arkansas is at-will, an employee can bring a wrongful-discharge claim for discrimination or retaliation under the Arkansas Civil Rights Act and federal law, retaliation for protected activity, or a termination that violates public policy, such as firing for filing a workers' compensation claim. A contract breach can also support a claim.
Often yes. In Arkansas, a worker discharged for reasons other than misconduct connected with the work is generally eligible for unemployment benefits through the Division of Workforce Services. Being let go for a layoff or inability to meet performance standards usually does not bar benefits; disqualification typically requires misconduct. The agency decides eligibility case by case.
Keep the performance documentation, warnings, and the stated reason for the termination, along with proof that the final wages were paid by the next regular payday under Arkansas Code 11-4-405. Retain payroll and wage records as required, since they are your defense if the worker files a wage claim or a wrongful-discharge claim in Arkansas.
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