Workers Comp Rates in Arkansas (AR)
The average workers' compensation rate in Arkansas is $0.75 per $100 of payroll , effective as of 2025-01-01. This is $0.44 (37.0%) below the national average of $1.19 per $100. Arkansas has a competitive insurance market where employers can purchase workers' comp from private insurers. Arkansas is one of the most affordable states for workers' compensation insurance, with rates well below the national average. Coverage is required for employers with 3 or more employees.
Workers Comp Requirements in Arkansas
Workers Comp Rates by City in Arkansas
The table below shows average workers' compensation rates for 4 cities in Arkansas, sorted by rate from highest to lowest. Rates range from $0.72/$100 in Fayetteville to $0.80/$100 in Fort Smith. Actual rates depend on your industry class code and claims history.
| City | Rate/$100 | Est. Cost ($250K) | vs. State Avg | vs. National Avg | Notes |
|---|---|---|---|---|---|
| Fort Smith | $0.80 | $2,000 | +$0.05 | -$0.39 | Manufacturing hub |
| Little Rock | $0.78 | $1,950 | +$0.03 | -$0.41 | State capital |
| Springdale | $0.74 | $1,850 | -$0.01 | -$0.45 | -- |
| Fayetteville | $0.72 | $1,800 | -$0.03 | -$0.47 | -- |
How Arkansas Compares to Other States
Below is a comparison of Arkansas with five states that have similar workers' compensation rates. This comparison helps illustrate where Arkansas stands nationally in terms of workers' comp costs and requirements.
| State | Rate/$100 | Type | Min Employees | Waiting Period | Est. Cost ($250K) |
|---|---|---|---|---|---|
| Arkansas (AR) | $0.75 | Competitive | 3+ | 7 days | $1,875 |
| Indiana (IN) | $0.80 | Competitive | 1+ | 7 days | $2,000 |
| Virginia (VA) | $0.68 | Competitive | 2+ | 7 days | $1,700 |
| Utah (UT) | $0.85 | Competitive | 1+ | 3 days | $2,125 |
| Texas (TX) | $0.90 | Competitive | 1+ | 7 days | $2,250 |
| Colorado (CO) | $0.92 | Competitive | 1+ | 3 days | $2,300 |
Workers Comp Cost Examples for Arkansas
The following table shows estimated annual workers' compensation costs for various payroll sizes in Arkansas using the state average rate of $0.75 per $100 of payroll. Actual costs depend on your industry class code and experience modifier.
| Annual Payroll | Est. Annual Premium | Est. Monthly Cost |
|---|---|---|
| $50,000 | $375 | $31 |
| $100,000 | $750 | $63 |
| $250,000 | $1,875 | $156 |
| $500,000 | $3,750 | $313 |
| $1,000,000 | $7,500 | $625 |
| $2,500,000 | $18,750 | $1,563 |
Frequently Asked Questions About Workers Comp in Arkansas
How much does workers comp cost in Arkansas?
The average workers' compensation rate in Arkansas is $0.75 per $100 of payroll. For an employer with $250,000 in annual payroll, that works out to approximately $1,875 per year. However, actual rates vary significantly by industry. Office workers may pay as little as $0.20/$100 while high-risk industries like construction or logging can exceed $10/$100.
Is workers comp required in Arkansas?
Yes. Arkansas requires workers' compensation for employers with 3 or more employees. The following are exempt: Agricultural workers, domestic workers, real estate agents. Penalties for noncompliance include: Misdemeanor, up to $10,000 fine, injunction against operations.
Where can I buy workers comp in Arkansas?
Arkansas has a competitive workers' compensation market. You can purchase coverage from any licensed private insurance company, through an insurance agent or broker, or in some cases through a state-sponsored program. Shopping multiple carriers is recommended to find the best rate for your industry and claims history.
What is the waiting period for workers comp in Arkansas?
The waiting period in Arkansas is 7 days. This means an injured worker must wait 7 days before receiving wage replacement benefits. Medical benefits typically begin immediately. If the disability extends beyond a certain number of days (usually 14-21 depending on the state), the waiting period benefits are paid retroactively. The maximum weekly benefit in Arkansas is $790.
Estimate Your Workers Comp Cost
Use our workers comp cost calculator to estimate your premium based on your specific payroll in Arkansas, or browse all 50 states to compare workers' comp rates across the country. Remember that actual rates depend on your industry classification, claims history, and experience modification rate.