Does anyone know of any laws about the availability of payroll funds through direct deposit in Arkansas? It seems like I remember reading that some states require that funds direct deposited had to be available on the same day as paper checks.

In most cases this means that the direct deposit has to be transmitted the day before "payday" so that the deposits can go through the nightly batch process. I think the theory behind this is that if I have direct deposit I should be able to access my money as easily as I could if I just cashed a paper check.

Am I wrong about this for other states, and if I'm not, does anyone know what the law for Arkansas is?

What little I know of Arkansas direct deposit law comes from the BNA payroll library (a paid service):

Employers may pay their employees in currency, by check, or by direct deposit into the employee's account. The employee may opt out of direct deposit by providing the employer a written statement requesting payment by check (Arkansas Code Annotated § 11-4-402, as last amended by Act No. 925 (L. 2003)).

Are you the employer or the employee in this scenario? If you are the employee, contact your bank and ask them when directly deposited funds are available. With some banks, such deposits are posted, but do not appear as available through an ATM until the next day, although they ARE available at the counter.

If you are the employer, my recollection is that the DD file must be transmitted to your ACH processor no later than 24 hours before the pay date; most processors strongly urge (if not require) 48 hours. Again, ask your processor.