Hiring New Employees in Arkansas: A Legal Guide

Create a clear job description that outlines the position's responsibilities, required qualifications, and compensation. Ensure the job posting complies with Arkansas employment laws and does not contain discriminatory language. Arkansas follows federal anti-discrimination laws, including Title VII of the Civil Rights Act, the Americans with Disabilities Act (ADA), and the Age Discrimination in Employment Act (ADEA).

Develop an employment application form that collects necessary information from candidates while complying with Arkansas employment laws. The application should avoid questions about protected characteristics such as age, race, religion, national origin, disability, or marital status. Include a statement about being an at-will employer (standard in Arkansas) and authorization to verify information provided.

Interview qualified candidates and select the best fit for the position. Ensure all interview questions comply with anti-discrimination laws. Document the selection process and reasons for hiring decisions to protect against potential discrimination claims. Keep interview notes and evaluation forms for at least one year.

Draft an offer letter that includes position title, start date, compensation, benefits, and employment status (full-time, part-time, temporary). Clearly state that employment is at-will unless you intend to create a contract for a specific term. Have legal counsel review the letter to ensure it doesn't inadvertently create contractual obligations you don't intend.

If offering a contract rather than at-will employment, draft a comprehensive employment contract. Include terms of employment, compensation, benefits, duties, grounds for termination, confidentiality provisions, and dispute resolution procedures. Arkansas generally recognizes employment contracts, but have legal counsel review to ensure enforceability.

Create a non-disclosure agreement to protect confidential business information. Arkansas courts generally enforce reasonable NDAs. Ensure the agreement clearly defines what information is considered confidential, the employee's obligations regarding that information, and the duration of those obligations.

If necessary, draft a non-compete agreement. In Arkansas, non-compete agreements are enforceable if they are reasonable in terms of time, geographic scope, and prohibited activities. The agreement must protect a legitimate business interest and not merely prevent competition. Have legal counsel review to ensure enforceability under Arkansas law.

Create a form authorizing background checks that complies with the Fair Credit Reporting Act (FCRA) and Arkansas law. The form must be clear, conspicuous, and separate from other documents. It must disclose that a consumer report may be obtained for employment purposes and get the applicant's written authorization.

After receiving signed authorization, conduct background checks in compliance with the FCRA and Arkansas law. If you decide not to hire based on information in the background check, you must follow the adverse action procedures required by the FCRA, including providing pre-adverse action and adverse action notices.

Develop an employee handbook that outlines company policies, procedures, and expectations. Include policies on attendance, conduct, benefits, paid time off, harassment, discrimination, safety, and complaint procedures. Arkansas-specific policies should address wage and hour laws, leave policies, and at-will employment. Have legal counsel review the handbook to ensure compliance with Arkansas and federal laws.

Federal law requires completion of Form I-9 to verify identity and employment authorization. The employee must complete Section 1 by the first day of employment. The employer must complete Section 2 within 3 business days of the employee's first day. Examine original documents presented by the employee and record them on the form. Store I-9 forms separately from personnel files.

Have the employee complete a federal W-4 form to determine federal income tax withholding. Keep the completed form in the employee's payroll records. A new W-4 should be completed if the employee's tax situation changes.

Have the employee complete Arkansas state tax withholding form (AR4EC) to determine state income tax withholding. Keep the completed form in the employee's payroll records.

Create a form for employees to authorize direct deposit of their paychecks. Include fields for bank account and routing numbers, account type, and authorization language. Direct deposit is optional in Arkansas, so employees cannot be required to receive wages via direct deposit.

Create a form to collect emergency contact information from the new employee. Include fields for multiple contacts, their relationship to the employee, and various contact methods. This information should be kept confidential and only used in emergency situations.

Prepare forms for enrolling the employee in company benefit programs such as health insurance, retirement plans, and other benefits. Include clear explanations of available options, costs, and enrollment deadlines. Note that Arkansas has specific requirements for certain benefits, such as workers' compensation insurance, which is mandatory for most employers with three or more employees.

Federal and Arkansas law requires employers to report newly hired employees to the Arkansas New Hire Reporting Center within 20 days of hire. Complete the New Hire Reporting Form with the employee's name, address, Social Security number, and date of hire, along with the employer's name, address, and Federal Employer Identification Number (FEIN). Reports can be submitted online through the Arkansas New Hire Reporting Center.

If not already registered, register with the Arkansas Division of Workforce Services for unemployment insurance. Employers in Arkansas are subject to unemployment insurance tax if they have one or more employees in 20 different weeks during a calendar year or pay wages of $1,500 or more in any calendar quarter.

Arkansas law requires employers with three or more employees to carry workers' compensation insurance. Contact an insurance provider to obtain coverage before the employee's first day. Failure to carry required workers' compensation insurance can result in significant penalties.

Arkansas and federal law require employers to display certain posters in the workplace. These include posters on minimum wage, workplace safety (OSHA), equal employment opportunity, family and medical leave (for employers with 50+ employees), and workers' compensation. Ensure all required posters are displayed in a prominent location accessible to all employees.

Schedule and conduct an orientation session for the new employee. Review company policies, procedures, and the employee handbook. Have the employee sign an acknowledgment of receipt of the handbook and understanding of key policies. Provide training on job responsibilities, safety procedures, and any equipment or software they will use.