AR SB598

Changes the test for determining employee vs. independent contractor status from the IRS 20-factor test (Rev. Rul. 87-41) to factors in 26 C.F.R. § 31.3121(d)-1 as it existed on January 1, 2025, applying this across workers' compensation, wage discrimination, and unemployment laws

Reduces the short-term layoff period during which workers are exempt from job search requirements from 10 weeks to 3 weeks, and authorizes the Division of Workforce Services director to establish rules for reducing or removing work search requirements

Removes the requirement for Arkansas Workforce Development Board review of transitional employment assistance implementation plans and eliminates the board's standing committee overseeing the Temporary Assistance for Needy Families (TANF) Program

Expands the Division of Workforce Services Training Trust Fund to cover personnel services, operating expenses, and grants for worker training programs (previously limited to specific purposes)

Adds overpayment of unemployment insurance benefits as a third-priority lien on Arkansas Scholarship Lottery winnings, behind state taxes and delinquent child support