Subcommittee reviews small wage claims process and votes to batch lawsuits

The Joint Claims Subcommittee heard a briefing on the department’s practice of pursuing small wage claims and whether it routinely seeks court costs and attorney fees.

Department counsel (speaker 2) told the panel that asking for court costs and attorney fees is customary and that “a prevailing party in a lawsuit can be awarded attorney fees” under general litigation statutes, though award is at the court’s discretion. The counsel said the department enforces the Arkansas minimum wage and overtime statutes and handles smaller wage claims—those under a $2,000 jurisdictional cap—so claimants who cannot afford private counsel can obtain a remedy through the department’s process.

Several legislators pressed the department on the scope of its jurisdiction and on why matters that might otherwise be in small-claims court are brought to the department. Senator Peyton (speaker 4) said she had not previously realized the department’s role and asked whether defendants in these files are always licensees; the department replied they are typically employers from any industry and need not be licensed by a state occupational board to fall under the department’s enforcement.

Committee members also asked about the department’s costs to pursue these cases. The counsel said those costs are absorbed by existing staff and investigators; filing fees are statutorily waived but service fees (about $50 per defendant) remain. Senator Flowers (speaker 1) asked why settled or dismissed matters were still reported; staff explained these are lawsuits the department filed because informal collection failed, and the committee is notified of filings and subsequent outcomes.

At the conclusion of the presentation, the subcommittee moved, seconded and carried a motion to review the listed B1 items and subsequently voted to batch and file multiple wage-claim lawsuits. The chair called the motion carried after no recorded roll-call was requested.