2021 Arkansas General Assembly looking at new employment legislation

The 93rd Arkansas General Assembly is now in session, and several employment-related bills have been introduced. Of course, their mere introduction doesn’t mean they will ultimately be reported out of committee, much less voted into law. Nevertheless, you may wish to keep an eye on potential legislation of interest and maybe even inform your representative and senator about your views on it. While several of these bills were covered in our April 2021 article “Arkansas General Assembly considers new employment legislation,” some new bills have been introduced.

Updates on previously reported bills

House Bill (HB) 1049 would affect tax withholding from jobless benefits. It would amend Arkansas Code § 26-51-904 to permit the withholding of state income taxes from unemployment compensation and insurance benefits if the recipient requests the withholding. In that event, you would treat the benefits as wage payment and tax them at a rate of 4.5%.

HB 1049 has now passed the house and the senate and been transmitted to Governor Asa Hutchinson for his signature.

HB 1192 would eliminate the exclusion of personal care workers from the definition of “employment” under the Arkansas Minimum Wage Act (AMWA). The bill’s stated intent is to treat personal care workers as the employees of home- and community-based service providers and not as independent contractors.

HB 1192 has been read twice and referred to the House Committee on Public Health, Welfare, and Labor.