Arkansas

  • Project Labor Agreements

    Statute prohibits government-mandated PLAs for public and publicly-assisted construction projects.

  • Prevailing Wage

    Yes; $75,000.

  • Right to Work

    Yes.

  • Public-Private Partnerships

    Statute authorizes the use of P3s on construction and acquisition of school buildings and related facilities, water treatment facilities, toll bridges, turnpikes or causeways. Unsolicited bids are not allowed.

  • Workforce Development Incentives

    Existing Workforce Training Program – Provides financial assistance to  eligible Arkansas businesses for upgrading the skills of the existing workforce to remain competitive and economically viable. Training is for full-time, permanent employees who work at least 30 hours a week and are subject to Arkansas’s personal income tax. Reimbursements are calculated according to a set of scoring criteria (training only available through state supported educational institutions).

    Youth Apprenticeship Program – Act 1103 of 1995 provides for an income tax credit of up to $2,000 for each qualified youth apprentice. To claim the benefits, a taxpayer must obtain a certification from the Bureau of Apprenticeship and Training of the U.S. Department of Labor. A taxpayer who trains a youth apprentice in a registered Youth Apprenticeship Program shall be entitled to a credit in the amount of $2,000 or 10% of the wages earned by the youth apprentice, whichever is less.

    Youth Apprenticeship/Work-Based Learning Program – Act 1168 of 1997 provides for an income tax credit of up to $2,000 for each qualified youth apprentice. To claim the benefits, a taxpayer must obtain a certification from the Department of Workforce Education. Beginning January 1, 1998, a taxpayer who employs a youth apprentice in an approved apprenticeship/work-based learning program which is in an occupation not eligible under the Youth Apprenticeship Training Program, provided by Act 1103 of 1995, shall be entitled to a credit in the amount of $2,000 or 10% of the wages earned by the youth apprentice, whichever is less.

  • Career and Technical Education

    92% of CTE high school graduates are placed in colleges or careers.

    Arkansas recognizes NCCER as an approved curriculum for CTE programs.

  • 5-Year Average Job Growth Rate (2011-16)

    1.1%.

Monthly Unemployment Rate in Arkansas

Industry Overview

Prompt Pay

Private: No law in place.
Public: 5 days after owner and contract agree on invoice. 8% annual interest.
Subs: No law in place.

Immigration/E-Verify Mandate

No law in place.

Percentage of State GDP From Nonresidential Construction

3.8%

Incidence Rate in Construction (2013)

3.0

Occupational Safety & Health Oversight (State vs. Federal)

Federal oversight.

Percentage of Union Membership in Private Construction

2.3%.

Marijuana Legalization Status

On November 8, 2016, voters approved the Arkansas Medical Marijuana Amendment, Issue 6, which legalized marijuana for 17 qualifying conditions, created a Medical Marijuana Commission, and allocated tax revenue to technical institutes, vocational schools, workforce training, and the General Fund. The measure became effective on November 9, 2016 but the Department of Health was given up to 120 days to adopt rules for certain provisions.

Business Facts

Minimum Wage (2016)

8

Percentage of Pensions Funded

82%

Effective Real-Estate Tax Rate

0.64%

Corporate Income Tax Rate(s)

1% - 6.5%

Capital Spending % As Share of Total State Spending (2013)

5.5%