2024 Arkansas Labor & Employment Year End Review

Wichita, Kan. (February 25, 2025) - Several updates to Arkansas employment laws took effect in 2024, including by virtue of new case law, changes to the unemployment insurance statute, increase in the minimum wages, and workforce development initiatives.

Case Law Update

The Arkansas Court of Appeals, in Isaac v. Dir., Div. of Workforce Servs., 2024 Ark. App. 472, 698 S.W.3d 137, expanded unemployment benefit eligibility for workers with restricted schedules. Under Arkansas Code § 11-10-507(3)(A), a claimant must be 'available for work' to receive benefits. The Court ruled that schedule limitations alone - such as attending school or having non-traditional availability - do not automatically render a claimant ineligible for benefits. The Court held that, as long as employment opportunities exist that could reasonably fit within a claimant's scheduling constraints, they should be considered 'available for work.' This decision requires the Arkansas Division of Workforce Services to evaluate benefit claims from workers with scheduling restrictions beyond simply checking whether someone has full open availability.

The Arkansas Supreme Court held in Union Pac. R.R. Co. v. Franklin, 2024 Ark. 74, 687 S.W.3d 787. that the Arkansas statute protecting employees' rights to keep firearms in their locked vehicles at work, Ark. Code Ann. § 11-5-117, remains valid and enforceable, even in situations where employers are barred from being indemnified from liability for accidents or incidents involving those firearms. This decision particularly impacts railroad employers who are subject to federal liability laws, but it has broader implications for all Arkansas employers. The ruling reinforces that Arkansas employers generally cannot prohibit employees from storing legally owned firearms in their locked personal vehicles at work even if the employer has a no-weapons policy. However, the law includes important exceptions, including for employees subject to disciplinary proceedings or when the vehicle is company-owned.

A 2024 employment law decision from the U.S. District Court for the Eastern District of Arkansas clarified when employers must accommodate employee scheduling requests. In Duvall v. Salem Place Nursing & Rehab. Ctr., Inc., No. 4:23-CV-00036-BSM, 2024 U.S. Dist. LEXIS 89254 (E.D. Ark. May 17, 2024), the court held that when an employee has been medically cleared to return to work without restrictions, employers are not required to accommodate scheduling preferences that are unrelated to any disability (such as school schedules). The decision emphasizes that ADA protections apply when an employee who has a qualifying disability makes a formal accommodation request. This case provides guidance on handling scheduling accommodation requests – employers must carefully evaluate whether the request is related to a documented disability requiring accommodation under the ADA, or if it is simply a personal scheduling preference, which they have more discretion to deny.

Unemployment Insurance Law Update

Arkansas enacted three significant changes to unemployment insurance law. First, under Act 106 (HB 1197), claimants with thirty days of covered employment can be disqualified from benefits if they fail to attend two scheduled job interviews with the same employer without good cause and without notice. Second, Act 196 (HB 1430) modified the duration of benefits, reducing maximum weekly Unemployment Insurance from sixteen to twelve weeks. And third, through Act 587 (HB 1575), the state implemented new work search requirements - claimants must now make five work search contacts each week to maintain eligibility for benefits.

Minimum Wage Rate Update

Arkansas adjusted its minimum wage rates. The standard minimum wage rose to $11.00 per hour at the beginning of 2024, while the minimum wage for tipped employees increased to $2.63 per hour.

Workforce Development Update

The state also focused on improving workforce development resources through § 6-50-105. This legislation tasks the Department of Education, Department of Commerce, and Division of Workforce Services with creating a strategic workforce dashboard. The dashboard will provide information about state and regional labor market conditions, worker supply and demand, workforce program outcomes, and projected employment trends.

The same law mandates the development of a mobile-phone-friendly application to assist job seekers. This application will allow users to view available jobs in their region, understand the training requirements for these positions, and locate resources for obtaining needed training or certifications.

For more information on these developments, contact the author or editors of this alert. Visit our Labor & Employment Practice page for additional alerts in this area.

Author:

Ethan Ward, Associate

Editors:

Blake M. Edwards, Partner

Alan L. Rupe, Co-Managing Partner, Wichita and Kansas City