Arkansas follows traditional common law tests for classifying gig workers as employees or independent contractors, without adopting strict ABC tests like California or recent federal DOL economic reality factors that might reclassify many gig roles. Workers are generally contractors if they control their work, provide their own tools, and operate independently, but misclassification risks back wages, taxes, and penalties under state wage laws.
Classification Criteria
Arkansas uses a multi-factor test focusing on behavioral control (employer instructions), financial control (unreimbursed expenses, investment), and relationship type (benefits, permanency). Gig workers like rideshare drivers often qualify as contractors unless the company dictates schedules or routes extensively.​
No 2026-specific gig reforms appear; new laws target unemployment (Act 708: stricter job search) and SNAP work requirements (Act 631: allows volunteering), indirectly affecting gig flexibility.​
Federal FLSA overlays apply, emphasizing economic dependence; IRS 1099 rules mandate reporting for contractors earning $600+.​
Key Protections and Risks
Employees gain minimum wage ($11/hour in 2026), overtime, and unemployment eligibility; contractors handle self-employment taxes (15.3%) but retain flexibility. Misclassification suits rise nationally, with Arkansas courts upholding IRS/state alignment.​
Portable benefits discussions (e.g., federal bills) gain traction but remain voluntary in Arkansas.​
Comparison Table
Gig platforms thrive as contractor models in Arkansas’s business-friendly climate, but audits scrutinize control levels.
