WAGE AND HOUR DEMAND LETTER
State of Arkansas
Fair Labor Standards Act and Arkansas Minimum Wage Act Claims
[ATTORNEY/FIRM LETTERHEAD]
[Firm Name]
[Address Line 1]
[City, Arkansas ZIP]
Tel: [Phone Number]
Fax: [Fax Number]
[Attorney Email]
[Arkansas Supreme Court Attorney ID Number]
VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND VIA EMAIL TO: [recipient_email]
[Date]
[Employer Contact Name]
[Title]
[Company Legal Name]
[Company Address]
[City, State ZIP]
Re: Wage and Hour Violations - [Client Full Name]
Demand for Unpaid Wages Under FLSA and Arkansas Minimum Wage Act
CONFIDENTIAL SETTLEMENT COMMUNICATION PURSUANT TO FRE 408 and ARE 408
Dear [Mr./Ms./Mx. Last Name]:
This firm represents [Client Full Name] regarding claims for unpaid wages against [Company Legal Name] arising from violations of the Fair Labor Standards Act ("FLSA"), 29 U.S.C. Section 201 et seq., and the Arkansas Minimum Wage Act, Ark. Code Ann. Section 11-4-201 et seq.
I. ARKANSAS-SPECIFIC LEGAL FRAMEWORK
A. Arkansas Wage and Hour Requirements
Arkansas enacted the Arkansas Minimum Wage Act through Issue 5 (2018), which established a phased minimum wage increase and ongoing provisions.
Key Requirements:
| Category | Arkansas Requirement | Citation |
|---|---|---|
| Minimum Wage | $11.00/hour | Ark. Code Ann. Section 11-4-210 |
| Overtime | 1.5x after 40 hours/week | Ark. Code Ann. Section 11-4-211 |
| Tipped Minimum | $2.63/hour (with tip credit) | Ark. Code Ann. Section 11-4-210(b) |
| Pay Frequency | At least semi-monthly | Ark. Code Ann. Section 11-4-401 |
| Final Pay | Within 7 days of termination | Ark. Code Ann. Section 11-4-405 |
B. Arkansas Minimum Wage Coverage
Covered Employers (Ark. Code Ann. Section 11-4-203):
- Employers with 4 or more employees
- Does NOT require interstate commerce (broader than FLSA for larger employers)
Exemptions (Ark. Code Ann. Section 11-4-214):
- Employers with fewer than 4 employees
- Executive, administrative, professional employees
- Outside salespersons
- Agricultural workers
- Employees of seasonal amusement establishments
- Domestic service in employer's home
C. Arkansas Overtime Law
Coverage: Arkansas overtime law applies to employers with 4 or more employees.
Rate: 1.5 times the regular rate for hours over 40 in a workweek.
Exemptions: Similar to FLSA white collar exemptions, plus specific Arkansas exemptions.
D. Tipped Employee Rules
| Requirement | Arkansas Standard |
|---|---|
| Minimum cash wage | $2.63/hour |
| Maximum tip credit | $8.37/hour |
| Total must equal | $11.00/hour minimum |
| Notice required | Yes, prior to taking credit |
| Tip pooling | Valid among customarily tipped employees |
E. Arkansas Wage Payment Laws
Pay Frequency (Ark. Code Ann. Section 11-4-401):
- At least semi-monthly (twice per month)
- Must designate regular paydays
Final Pay (Ark. Code Ann. Section 11-4-405):
- Within 7 days of discharge (regardless of reason)
- Applies to all earned wages, including commissions
Prohibited Deductions:
- Cannot deduct for cash shortages, breakage, or losses unless:
- Employee consents in writing
- Deduction does not reduce pay below minimum wage
F. Statute of Limitations
| Claim Type | Limitations Period | Citation |
|---|---|---|
| Arkansas wage claims | 3 years | Ark. Code Ann. Section 16-56-105 |
| FLSA (standard) | 2 years | 29 U.S.C. Section 255(a) |
| FLSA (willful) | 3 years | 29 U.S.C. Section 255(a) |
G. Penalties and Remedies
Arkansas Minimum Wage Act (Ark. Code Ann. Section 11-4-218):
| Remedy Type | Provision |
|---|---|
| Unpaid wages | Full amount owed |
| Attorney's fees | Mandatory for prevailing employee |
| Costs | Recoverable |
| Criminal penalties | Misdemeanor for willful violations |
Note: Arkansas does not provide statutory liquidated damages like the FLSA, but the longer state statute of limitations (3 years) may benefit plaintiffs.
H. Enforcement Mechanisms
Administrative:
- Arkansas Department of Labor and Licensing, Labor Standards Division
- File wage claim with Labor Standards Division
- Investigation and administrative remedy available
Private Right of Action:
- Ark. Code Ann. Section 11-4-218: Express right to sue for unpaid wages
- Attorney's fees mandatory for prevailing employees
- Class actions available under Arkansas procedural rules
II. INTRODUCTION AND SUMMARY OF CLAIMS
Our client was employed by [Company Short Name] as a [Job Title] from [Start Date] to [End Date / Present] in Arkansas. [Company Short Name] violated federal and Arkansas wage laws by:
[ ] Failing to pay Arkansas minimum wage of $11.00 per hour
[ ] Failing to pay overtime at 1.5 times the regular rate for hours over 40/week
[ ] Misclassifying our client as exempt from overtime
[ ] Misclassifying our client as an independent contractor
[ ] Improperly claiming tip credit without meeting requirements
[ ] Failing to pay for all hours worked
[ ] Failing to pay final wages within 7 days of termination
[ ] Making unlawful deductions from wages
III. FACTUAL BACKGROUND
A. Employment Relationship
| Category | Details |
|---|---|
| Employee Name | [Client Full Name] |
| Job Title(s) | [Title(s)] |
| Dates of Employment | [Start Date] to [End Date / Present] |
| Work Location(s) | [Address(es) in Arkansas] |
| Primary Duties | [Describe job duties] |
| Rate of Pay | $[Amount] per hour |
| Classification | [Exempt / Non-Exempt / Independent Contractor] |
| Pay Frequency | [Semi-monthly] |
| Number of employees | [X - relevant for Arkansas coverage] |
B. Hours Worked
Typical Weekly Schedule:
| Day | Scheduled Hours | Actual Hours Worked | Unpaid Time |
|---|---|---|---|
| Monday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Tuesday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Wednesday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Thursday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Friday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Saturday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Sunday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Weekly Total | [X hours] | [X hours] | [X hours] |
IV. LEGAL ANALYSIS
A. Arkansas Minimum Wage Violation
[Company Short Name] employed 4 or more employees and therefore was subject to the Arkansas Minimum Wage Act. By paying our client less than $11.00 per hour [or by failing to ensure tips brought total compensation to minimum wage], [Company Short Name] violated Ark. Code Ann. Section 11-4-210.
B. Arkansas Overtime Violation
Arkansas requires overtime pay at 1.5 times the regular rate for hours worked over 40 in a workweek. Ark. Code Ann. Section 11-4-211. Our client worked [X] hours per week on average without receiving proper overtime compensation.
C. FLSA Violations
[Company Short Name] is also subject to the FLSA because [describe enterprise or individual coverage]. The company violated:
- 29 U.S.C. Section 206 (minimum wage)
- 29 U.S.C. Section 207 (overtime)
D. Final Wage Violation
[If applicable:] Arkansas law requires payment of all wages within 7 days of discharge. Ark. Code Ann. Section 11-4-405. [Company Short Name] failed to pay all wages owed until [date paid] / has still not paid $[amount] owed.
V. DAMAGES CALCULATION
A. Arkansas Minimum Wage Act Damages (3-year period)
| Category | Calculation | Amount |
|---|---|---|
| Unpaid minimum wage | [Hours] x $[shortfall/hour] | $[Amount] |
| Unpaid overtime (Arkansas) | [OT hours] x $[OT premium] x [weeks] | $[Amount] |
| Arkansas Subtotal | $[Amount] |
B. FLSA Damages (2/3-year period)
| Category | Calculation | Amount |
|---|---|---|
| Unpaid overtime | [OT hours] x $[OT premium] x [weeks] | $[Amount] |
| Unpaid minimum wage | [Hours] x $[shortfall] | $[Amount] |
| FLSA Unpaid Wages | $[Amount] | |
| FLSA Liquidated Damages | Equal to unpaid wages | $[Amount] |
C. Summary of Damages
| Category | Amount |
|---|---|
| Arkansas Unpaid Wages | $[Amount] |
| FLSA Unpaid Wages | $[Amount] |
| FLSA Liquidated Damages | $[Amount] |
| Attorney's Fees (estimated) | $[Amount] |
| Costs (estimated) | $[Amount] |
| TOTAL DAMAGES | $[Amount] |
VI. SETTLEMENT DEMAND
We demand payment of $[Settlement Demand Amount] to resolve all claims.
This demand includes unpaid wages under Arkansas and federal law, liquidated damages, and attorney's fees and costs.
This demand expires in twenty-one (21) days on [Response Deadline Date].
VII. RESPONSE AND LITIGATION
If we do not receive a satisfactory response, we will file suit in:
[ ] United States District Court for the Eastern District of Arkansas
[ ] United States District Court for the Western District of Arkansas
[ ] Arkansas Circuit Court, [County] County
We will seek:
1. Unpaid wages under Arkansas Minimum Wage Act
2. Unpaid wages and liquidated damages under FLSA
3. Attorney's fees and costs
4. Certification as collective action (FLSA) and/or class action (Arkansas)
VIII. DOCUMENT PRESERVATION
Preserve all time records, payroll records, personnel files, employee handbooks, and related documents immediately.
Sincerely,
[Attorney Name]
[Arkansas Supreme Court Attorney ID No.]
[Firm Name]
ARKANSAS-SPECIFIC PRACTICE NOTES
[ ] 4-Employee Threshold: Arkansas Minimum Wage Act only applies to employers with 4+ employees; verify count
[ ] 3-Year State SOL: Arkansas has 3-year limitations for wage claims, longer than FLSA's 2 years
[ ] No State Liquidated Damages: Arkansas does not have automatic liquidated damages like FLSA; pursue both claims
[ ] Mandatory Attorney's Fees: Arkansas provides mandatory fees to prevailing employees under Ark. Code Ann. Section 11-4-218
[ ] Issue 5 (2018): Minimum wage set by constitutional amendment; check for any amendments
[ ] Arkansas Department of Labor and Licensing:
- Labor Standards Division
- Phone: (501) 682-4500
- Website: labor.arkansas.gov
- Wage claim forms available online