Q: Legal to remove shift differential pay in Arkansas?

A: Your situation raises significant contract law considerations under Arkansas' employment framework. When differential pay is explicitly mentioned in your employment agreement, this creates a contractual obligation that your employer must honor according to Arkansas contract principles. Arkansas courts have consistently held that express terms in employment agreements remain binding even in at-will employment relationships, particularly when they address specific compensation structures like shift differentials that employees have relied upon for extended periods.

The three-year history of receiving this differential compensation establishes what Arkansas courts recognize as a "course of dealing" that strengthens your position against unilateral modification. While Arkansas follows the employment-at-will doctrine allowing employers substantial latitude in modifying employment terms, this flexibility becomes more limited when written agreements explicitly outline compensation structures. Arkansas Department of Labor regulations further require employers to provide advance written notice before implementing material changes to established wage structures, particularly when multiple employees are affected.

We recommend documenting all communications regarding this change, requesting written justification from your employer, and consulting with the Arkansas Department of Labor about your specific circumstances. You might consider filing a formal wage complaint with the state labor department if your employer proceeds with removing the differential despite your contractual protections. Arkansas law generally requires employers to honor contractual wage provisions or provide adequate notice and consideration before material modifications, particularly when the differential was explicitly used as an inducement for accepting less desirable shifts.