Updated for 2024-2025

Arkansas Workers' Compensation: Complete 2025 Guide

Everything Arkansas workers and employers need to know about workers' comp benefits, filing claims, benefit calculations, and more — plus a free AR-specific benefits calculator.

Calculate Your AR Benefits ↓

Table of Contents

  1. Arkansas Workers' Comp Overview
  2. Coverage Requirements & Employer Obligations
  3. Benefit Types & Calculation Rates
  4. Arkansas Benefits Calculator
  5. How to File a Claim
  6. Employer Requirements & Penalties
  7. Medical Treatment & Provider Rules
  8. Dispute Resolution & Appeals
  9. Settlements
  10. Special Situations & Exemptions
  11. Frequently Asked Questions
  12. State Resources & Links

Arkansas Workers' Compensation Overview

Arkansas's workers' compensation system is governed by the Arkansas Workers' Compensation Act, codified in A.C.A. Title 11, Chapter 9. The system is administered by the Arkansas Workers' Compensation Commission (AWCC), an independent state agency that oversees claims processing, dispute resolution, and employer compliance. The AWCC employs Administrative Law Judges who hear and decide disputed claims.

Arkansas requires coverage for employers with three or more employees. Benefits are calculated at 66.67% of the injured worker's average weekly wage (AWW), subject to a maximum of $725 per week. The state uses a traditional weekly wage basis, and benefits begin after a 7-day waiting period that becomes retroactive if disability exceeds 14 days.

The Arkansas system underwent significant reform with Act 796 of 1993, which restructured the Commission and updated benefit provisions. The state maintains a balanced approach between worker protection and employer cost management. The exclusive remedy doctrine means workers' compensation is generally the sole remedy for work-related injuries, barring tort suits against employers except in limited circumstances involving intentional misconduct.

Arkansas stands out for its Second Injury Fund, which encourages employers to hire workers with pre-existing disabilities by limiting employer liability for combined disabilities. The state also features a relatively straightforward claims process through the AWCC, with clear procedural rules and timelines for claim resolution.

Key Arkansas Workers' Comp Facts at a Glance

Coverage: Mandatory (3+ employees) | TTD Rate: 66.67% of AWW | Max TTD: $725/week | Min TTD: $20/week | Waiting Period: 7 days (retroactive after 14 days) | Statute of Limitations: 2 years | Medical: Employer-directed (approved panel) | Admin: Arkansas Workers’ Compensation Commission (AWCC) | Law: A.C.A. Title 11, Chapter 9

How Arkansas Compares to Other States

Arkansas's maximum TTD benefit of $725 per week places it in the lower tier nationally, below states like Illinois ($1,859.84), Colorado ($1,143), and Connecticut ($1,583). However, Arkansas's lower cost of living means benefit purchasing power is relatively comparable. The 3-employee coverage threshold is lower than Alabama (5 employees) but higher than states mandating coverage for all employers (Arizona, California).

The employer-directed medical panel system provides workers more choice than pure employer-control states while giving employers some cost management ability. Arkansas's 2-year statute of limitations and 450-week maximum duration for TTD benefits are both moderate by national standards.

Coverage Requirements & Employer Obligations

Arkansas requires workers' compensation for employers with three or more employees engaged in the same business or establishment. All regular employees count, including full-time, part-time, and seasonal workers. Employers below the threshold may voluntarily obtain coverage.

Exemptions from Coverage

Insurance Options

Penalties for Non-Compliance

Failure to carry required workers' compensation insurance in Arkansas is a misdemeanor punishable by fines of $100 to $1,000 per day of non-compliance. The AWCC can seek injunctive relief to shut down non-compliant businesses. Uninsured employers are personally liable for all benefits owed to injured workers.

Benefit Types & Calculation Rates

Temporary Total Disability (TTD)

TTD benefits are paid when an injury completely prevents work. Arkansas calculates TTD at 66.67% of AWW, subject to the maximum of $725/week and minimum of $20/week. Benefits last up to 450 weeks from the date of injury.

Parameter2024 RateDetails
Maximum TTD$725/weekBased on state AWW
Minimum TTD$20/weekFloor for low-wage workers
Benefit Rate66.67% of AWWTwo-thirds of average weekly wage
Waiting Period7 daysRetroactive after 14 days
Maximum Duration450 weeksFrom date of injury

Temporary Partial Disability (TPD)

TPD benefits apply when an injured worker returns to work at reduced capacity. Arkansas calculates TPD as 66.67% of the wage difference between pre-injury AWW and current earnings, up to the state maximum. TPD lasts up to 450 weeks.

Permanent Partial Disability (PPD)

PPD benefits compensate permanent impairment that doesn't prevent all work. Arkansas uses a scheduled loss system for specific body parts:

Body PartMaximum WeeksRate
Thumb60 weeks66.67% of AWW
Index Finger35 weeks66.67% of AWW
Middle Finger30 weeks66.67% of AWW
Ring Finger20 weeks66.67% of AWW
Little Finger15 weeks66.67% of AWW
Hand150 weeks66.67% of AWW
Arm200 weeks66.67% of AWW
Great Toe30 weeks66.67% of AWW
Other Toes10 weeks66.67% of AWW
Foot125 weeks66.67% of AWW
Leg175 weeks66.67% of AWW
Eye100 weeks66.67% of AWW
Hearing (one ear)35 weeks66.67% of AWW
Hearing (both ears)100 weeks66.67% of AWW

For unscheduled injuries (back, neck, head, internal organs), benefits are based on the worker's loss of wage-earning capacity, considering impairment rating, age, education, and job skills.

Permanent Total Disability (PTD)

PTD benefits are paid at 66.67% of AWW (max $725/week) for the duration of disability, potentially for life. Certain injuries create a PTD presumption: loss of both hands, both feet, both eyes, or total paralysis of two or more limbs.

Death Benefits

Death benefits provide 66.67% of AWW (max $725/week) to dependents for up to 450 weeks. Burial expenses up to $10,000 are covered. Surviving spouses receive benefits until remarriage or exhaustion of the 450-week period.

Medical Benefits

Arkansas covers all reasonable and necessary medical treatment related to the work injury with no deductibles or co-pays. The employer provides a panel of approved physicians from which the worker selects treatment. Medical benefits continue as long as reasonably needed.

Arkansas Workers' Comp Calculator

Enter your wage and injury details to estimate your Arkansas workers' compensation benefits based on current state rates.

AR Benefits Estimator

Your gross weekly earnings before the injury (before taxes/deductions)
Please enter a valid weekly wage amount
Please select a benefit type
Estimated duration of disability in weeks

Your AR Results

Enter your wage details and click Calculate AR Benefits to see your estimated Arkansas workers' compensation benefits.

How to File a Workers' Comp Claim in Arkansas

Filing a workers' compensation claim in Arkansas follows a structured process. Understanding each step and applicable deadlines is critical to protecting your rights.

1

Report the Injury to Your Employer

Notify your employer as soon as possible. While no strict employee reporting deadline exists, delayed reporting can jeopardize the claim. Written notice is recommended.

2

Employer Files First Report of Injury

The employer must file a First Report of Injury (Form AR-N) with the AWCC and their carrier within 10 days.

3

Seek Medical Treatment

Select a treating physician from the employer's approved panel. Emergency treatment may be obtained from any provider.

4

Insurance Carrier Accepts or Denies

The carrier investigates and either accepts or controverts the claim. If accepted, benefits begin after the 7-day waiting period.

5

File for a Hearing if Disputed

If denied, file a Claim for Compensation (Form AR-C) with the AWCC requesting a hearing before an Administrative Law Judge.

Critical: Statute of Limitations

Arkansas has a 2-year statute of limitations from the date of injury, last compensation paid, or last medical treatment furnished. For occupational diseases, the period runs from when the worker first knew or should have known the condition was work-related.

Employer Requirements & Penalties

Mandatory Insurance

All employers with 3+ employees must maintain continuous workers' compensation coverage. Employers must post workplace notices, report injuries within 10 days, and cooperate in claims processing.

Anti-Retaliation

Arkansas prohibits retaliation against employees who file workers' comp claims. Terminated employees may pursue wrongful discharge claims in addition to workers' compensation benefits.

Return-to-Work Programs

Arkansas encourages employers to develop return-to-work programs offering light-duty or modified-duty positions. These programs reduce costs while helping workers maintain income and workplace connections.

Medical Treatment & Provider Rules

Arkansas uses an employer-directed medical care model with an approved physician panel. Workers select their treating doctor from this panel. Key features:

Dispute Resolution & Appeals

Disputed claims go before AWCC Administrative Law Judges. The process includes:

  1. Claim for Compensation (Form AR-C) — filed with the AWCC
  2. Prehearing conference — to identify issues and explore settlement
  3. Formal hearing — presentation of evidence and testimony
  4. ALJ opinion — written decision on disputed issues

Appeals go to the Full Commission (three commissioners), then to the Arkansas Court of Appeals, and ultimately to the Arkansas Supreme Court.

Settlements in Arkansas Workers' Comp

Arkansas permits lump-sum settlements with AWCC approval. Settlement types include:

The AWCC reviews all settlements to ensure they are fair and adequate. Arkansas also allows claim reopening within one year of the last payment if the worker's condition changes.

Special Situations & Exemptions

Independent Contractors

Not covered, but Arkansas courts strictly evaluate the true nature of the relationship. The primary test focuses on the employer's right to control how work is performed. Misclassification results in penalties and liability for unpaid benefits.

Drug and Alcohol Testing

If an employee tests positive for controlled substances or alcohol at the time of injury, Arkansas creates a rebuttable presumption that intoxication was the proximate cause. This can result in denial or reduction of benefits.

Second Injury Fund

Arkansas maintains a Second Injury Fund encouraging employment of workers with pre-existing disabilities. When a new injury combines with a pre-existing condition, the employer pays only for the new injury's disability; the Fund covers the remainder.

Occupational Diseases

Arkansas covers occupational diseases arising from employment conditions. The worker must prove employment was the major contributing cause. Common claims include respiratory conditions, hearing loss, and repetitive stress injuries.

Frequently Asked Questions

Arkansas requires coverage for all employers with three or more employees, including full-time, part-time, and seasonal workers. Agricultural workers, domestic servants, and independent contractors are generally exempt. Employers below the threshold may voluntarily obtain coverage.
The maximum TTD rate in Arkansas is $725 per week. TTD is calculated at 66.67% of your average weekly wage. The minimum is $20/week. Benefits last up to 450 weeks.
Report your injury to your employer immediately. The employer files Form AR-N with the AWCC within 10 days. Select a doctor from the employer's panel. If denied, file Form AR-C requesting an AWCC hearing.
Arkansas has a 7-day waiting period. If disability exceeds 14 days, the waiting period is paid retroactively. Medical treatment is covered from day one.
Arkansas uses an employer-directed panel system. You select from the employer's approved physician list. You may petition the AWCC for a change of physician if dissatisfied. Emergency treatment can be obtained anywhere.
Two years from the date of injury, last compensation paid, or last medical treatment. For occupational diseases, from when you knew or should have known the condition was work-related.
Generally no, but Arkansas courts scrutinize the distinction. The right-to-control test is primary. Misclassified workers may be entitled to benefits.
66.67% of the deceased worker's AWW (max $725/week) for up to 450 weeks, plus burial expenses up to $10,000.

Arkansas Workers' Comp Resources & Links

Explore Other State Guides