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Independent Contractor Test in Arkansas

Arkansas requires employers and agencies to use the IRS 20 factor test (a right to control test) to decide employment status for wages, taxes and unemployment insurance.

Last checked . General information, not legal advice.

Arkansas at a glance

Test for wage and hour law
IRS 20 factor test
Required by the Empower Independent Contractors Act of 2019 for all of Title 11, including wage issues.
ABC test for wage law
No
Test for unemployment insurance
IRS 20 factor test
ABC test for unemployment
No

Sources

Last checked

The rules in Arkansas

Which test does Arkansas use to classify independent contractors under its wage and hour laws?

Test for wage and hour law in Arkansas: IRS 20 factor test. Required by the Empower Independent Contractors Act of 2019 for all of Title 11, including wage issues.

Does Arkansas apply the ABC test under its wage and hour laws?

No. ABC test for wage law in Arkansas: no.

Which test does Arkansas use to classify independent contractors for unemployment insurance?

Test for unemployment insurance in Arkansas: IRS 20 factor test.

Does Arkansas apply the ABC test for unemployment insurance?

No. ABC test for unemployment in Arkansas: no.

Where do the Arkansas independent contractor tests come from?

The rules above come from Ark. Code 11-1-203, Ark. Code 11-1-204 and Ark. Code 11-10-210(e). Each source is linked on this page. We last checked them in October 2026.

What this means in practice

Write down how the working relationship actually operates: who sets the hours, who supplies tools, whether the worker serves other clients and whether the work is part of the business's usual line of work. These facts drive every classification test, and a written independent contractor agreement helps only if it matches them.

Check each law separately. A worker can be a contractor under one statute and an employee under another, because wage laws, unemployment insurance, workers' compensation and tax rules may each use their own test. Federal law also applies its own tests alongside the state rules.

Misclassification can lead to back wages, unpaid unemployment contributions, interest and penalties. If a role is close to the line, read the statute and agency guidance for the state where the work is performed, or ask the state labor or unemployment agency how it applies its test.

General information, not legal advice. Laws change, and cities can add their own rules, so check the current statute before you rely on it.