Legislative Issues

ARSHRM Legislative Stance

Federal and state lawmakers rely on Arkansas SHRM to inform and shape policy to benefit employers, employees, and the workplace.

Policymakers also rely on the voice of Arkansas SHRM members to best address the needs of employees and employers. Arkansas SHRM’s advocacy is a driver of positive workplace policy and encourages all Arkansas SHRM members to become advocates on behalf of the HR profession.

Arkansas SHRM was active in monitoring legislation filed during the 2023 Arkansas General Assembly legislative session. Below is a list of bills we were watching and their status. 
 

Effective Date of New Laws:

Generally, new laws in Arkansas are effective on the 91st day after Sine Die Adjournment of the Legislature. Sine Die Adjournment for the 2025 General Session has not been determined at this time. New laws with an emergency clause are generally effective when signed by the Governor. 

Any new law may have specific provision in that legislation that specify effective dates for all or part of the new law.  If the new law includes specific effective dates, then the general rule does not apply to that legislation. Any bills filed that are not passed during the session lapse and are not carried over to future legislative sessions.

The following bills for the 2025 General Session of the Arkansas Legislature are of interest to ARSHRM and are being tracked by our Governmental Affairs Director and our Legislative committee:

HB 1018 (Collins-D): Creates a tax credit for employers offering paid family and medical leave.

HB 1024 (Collins-D): Repeals laws prohibiting public employee collective bargaining.

HB 1058 (Unger-R): Prohibits public employees from giving advance notice of inspections to entities

SB 3 (Sullivan-R): Prohibit discrimination or preferential treatment by the state and other public entities. Also limits women and minority business enterprises. Now Act 116. We're disappointed in the Legislature speed to pass this bill and Governor's signature on this bill. In Arkansas, there are no “racial quotas” for hiring or procurement of funds, and there is no anti-white discrimination in state government. For decades, our state has made intentional efforts to ensure qualified candidates and individuals from underrepresented groups were aware of jobs and resources, and now those efforts will end. It’s a set-back – a high stakes one. 

HB 1073 (Ennett-D): Establishes the Advanced Energy Jobs Task Force.

HB 1116 (Rep. David Ray (R) and Sen. Jonathan Dismang (R): Seeks to establish the Remote and Mobile Work Modernization and Competitiveness Act. The bill proposes income tax and withholding exemptions for certain remote and mobile employees as well as nonresidents. It was referred to the House Revenue and Taxation Committee.

Comment: HB1116 seems like win/win for employers and employees on its face. It might be tax/revenue hit to State. Tax withholding compliance for employers for employees that spend small amounts of time in another state are a headache and an issue that probably leads to some, unintentional non-compliance by employers.

HB 1446  Representative Robin Lundstrum and Senator Jane English

Comment: ARSHRM sent a letter to both sponsoring legislators that we support HB 1446 which amends the Arkansas Workforce Challenge Scholarship Program by adding the ability for scholarship funds to go towards a public or private vocational.

SB284: Expansion of Physician Change Rights: This bill seeks to expand the ability of claimants to change physicians from a one-time option to once per year. Currently, employees are limited to a single change of physician during their workers' compensation claim. If enacted, this bill would allow employees to change their treating physician annually, potentially increasing the frequency of physician changes during prolonged claims.
Arkansas State Chamber

SB285: Modification of Compensation Restrictions: This bill proposes to modify compensation restrictions by increasing the maximum weekly benefit for disability or death from 66 2/3% to 70% of the employee’s average weekly wage. Additionally, it sets a maximum annual salary total for weekly benefit payments at $120,000. Similar increases are proposed for permanent partial disability rates.
Arkansas State Chamber

SB286: Flexibility in Determining Impairment Ratings: This bill aims to create flexibility in determining impairment ratings based on job requirements. It also seeks to expand wage loss disability to injuries that currently have wage loss disability built into existing benefits without reducing that built-in consideration in the Act.
Arkansas State Chamber

SB287: Attorney Fees for Controverted Medical Expenses: SB 287 proposes to allow attorney fees for controverted medical expenses, appeals, and changes of physicians under the Workers' Compensation Law. This change could incentivize legal representation in disputes over medical expenses, potentially increasing the legal costs for employers.

SB288: Expansion of Specialist Physician Change Rights: Similar to SB 284, this bill seeks to expand the ability of claimants to change specialist physicians from a one-time option to once per year. This would provide employees with greater flexibility in selecting specialist care during their workers' compensation claims.

The Arkansas Senate is currently considering a series of bills—SB 284 through SB 288—that propose significant amendments to the state's Workers' Compensation Law. These bills, sponsored by Senator John Payton, aim to modify various aspects of workers' compensation, potentially impacting both employers and employees. As Human Resources professionals and employers, it is crucial to understand these proposed changes to assess their implications on your organization's policies and employee relations.The Arkansas State Chamber of Commerce/Associated Industries of Arkansas has expressed strong opposition to these bills. The Workers Compensation bills are awaiting consideration on the Senate floor as of March 17, 2025.

Implications for Employers and HR Professionals: If enacted, these bills could lead to increased workers' compensation costs and administrative responsibilities for employers. The proposed changes may result in higher benefit payouts, more frequent physician changes, and increased legal fees associated with contested medical expenses. HR professionals should evaluate the potential impact of these bills on their organization's workers' compensation policies and consider engaging in discussions with industry groups or legal counsel to prepare for possible changes. However, ARSHRM is taking a Neutral position based on balancing employer and employee perspectives. Each ARSHRM member  should assess the impact  these bills have on their organization and act accordingly. 

HB 1643 Senator Irvin and Rep Dalby are sponsoring this bill amends and expands the reference checking bill that Russell Gunter, Allen Dobson and Bruce Cross worked on that was passed by the Arkansas legislature as the Quality In Hiring Act 1474 of 1999.  The Act became effective July 30, 1999. HB 1643 is amending the current law by adding “substantiated allegation of sexual abuse or sexual harassment by the employee, or the resignation by a formal employee during a pending investigation of an allegation of sexual abuse or sexual harassment against the former employee.”

I contacted the state chamber and they will  support and follow ARSHRM’s lead. This bill passed the House 97 – 0 with no house member arguing against the bill. It goes to the Senate next.

Comment: ARSHRM supports this bill, and encourages our members to reach out to their state Senator to vote YES on this bill.

NOW WHAT: Staying informed about the progress of these bills will be essential for proactive planning and ensuring compliance with any new regulations that may arise. The intent of this update is to inform you and let your employer be aware of these bills and take action to contact their legislators on their company position. HR Professionals and A-Team members should take this opportunity to inform your employers. SHRM believes in the power of Policy, Not Politics, and the importance of civility in advancing meaningful policy solutions that drive workplace success. 

Please continue to follow these bills and if any other surface that we should follow, please advise and comment to ARSHRM Legislative Director, Tim Orellano.

LEGISLATIVE SESSION INFORMATION
To view schedules, calendars, bill information, and legislator information, visit www.arkleg.state.ar.us.
 
LEGISLATIVE MESSAGE CENTER
House of Representatives: 501-682-6211
Senate: 501-682-2902
 
LIVE STREAMING FROM THE CAPITOL
Live stream House and Senate committee meetings and floor sessions online by following the links below: 
House: https://www.arkansashouse.org/ 
Senate: http://www.arkansas.gov/senate/