Arkansas PEO Law FAQs
Does Arkansas require PEOs to register with the state?
Yes. Arkansas requires PEOs to be licensed under the Arkansas Professional Employer Organization Recognition and Licensing Act (Ark. Code 23-92-401 et seq.), administered by the Arkansas Insurance Department. A limited exemption applies to qualifying out-of-state PEOs with 100 or fewer covered employees.
What bond or security do Arkansas PEOs need to provide?
Arkansas requires a $100,000 surety bond, reducible to $35,000 after three years of timely contributions for bonded lessor employers. ESAC-accredited PEOs are exempt from the bond. Standard applications and renewals are filed biennially.
What is Arkansas's unemployment insurance (SUI) taxable wage base?
Arkansas's SUI taxable wage base is $7,000 per employee per calendar year (2026). The new-employer rate is 2.0%.
Is workers' compensation mandatory in Arkansas?
Yes. Arkansas requires employers to carry workers' compensation insurance. There is no state fund; covered employers secure coverage from commercial carriers or through approved self-insurance programs.
What is the minimum wage in Arkansas?
Arkansas's minimum wage is $11.00 per hour (2026), which is above the federal minimum wage.
Does Arkansas require paid sick leave?
No. Arkansas does not mandate paid sick leave or any other paid leave at the state level.