Attracting and retaining high-quality teachers in the profession is a matter of significant policy concern. Increasing teacher salaries and creating more attractive compensation packages are often proposed to achieve this goal. However, average real teacher salaries have remained stagnant over the past decade and have not fully recovered from the impact of the Great Recession (Kraft and Lyon, 2022). Public school teachers' wages also appear lower or at most on par with those of college graduates in other professions (Allegretto and Mishel, 2020; Taylor, 2008; Richwine and Biggs, 2011; West, 2014). Alongside a decline in prestige in the profession and lower rates of enrollment in traditional teacher preparation programs (Kraft and Lyon, 2022), this puts the teaching profession in a challenging position. Increasing teacher salaries could be a solution to attract more and higher-quality teachers to the profession and help alleviate teacher staffing challenges that rural and high-poverty areas most. In addition to increasing pay, more flexibility in designing teacher compensation policies could also assist school districts in hard-to-staff areas in finding better ways to attract teachers to these positions (Biasi, 2021). Most public schools in the U.S. employ rigid schedules and do not provide differential pay based on teacher performance or working conditions. This becomes a significant hurdle for schools serving a higher proportion of students from disadvantaged backgrounds or in poverty. This situation may have been exacerbated by the pandemic (Camp, Zamarro, McGee, 2023). To date, lawmakers in at least 23 states have proposed bills that increase minimum teacher salaries and offer other bonuses to improve teacher recruitment and retention, particularly in shortage areas. Six of these bills have been signed into law, including the Arkansas LEARNS Act. Signed in March 2023, the LEARNS Act increased the state's minimum teacher salary from $36,000 to $50,000, guaranteed all teachers a minimum raise of $2,000, and removed requirements that salary schedules offer incremental pay based on experience and education. While the state is providing the necessary funds to meet these requirements, districts have the flexibility to adjust their salary schedules to reward educators based on experience and education or implement more creative approaches to teacher compensation. We collected information about Arkansas districts' teacher compensation policies one year before the implementation of the LEARNS Act (2022-23) and during the first year of implementation (2023-24). Through web searches and direct communication with school districts, we obtained data from nearly all school districts (231 out of 235 traditional public-school districts). We then merged this information with other district characteristics from the Arkansas Department of Education data system and the National Center for Education Statistics Common Core of Data. Finally, we integrated this district-level data with teachers' administrative data provided by the Arkansas Department of Education. This dataset covers the universe of public-school employees, enabling us to track individual teachers throughout their time in the Arkansas education workforce. We use this comprehensive dataset to address the following questions: (1) How have Arkansas school districts adjusted their teacher compensation policies in response to the LEARNS Act? How has the comparison of teacher salaries changed across different regions of the state? (2) How have the relationships between teacher salaries and district characteristics changed due to the LEARNS Act? (3) How have new salary schedules impacted teacher retention and mobility patterns, particularly in geographic and subject shortage areas?(4) How have new salary schedules affected the first job location of new teachers? Is it helping alleviate teacher shortage areas in the state? Our results reveal that, in 2022-23, starting teacher salaries in most districts in Arkansas were significantly lower than the new minimum salary of $50,000. The average entry-level teacher salary for those holding a bachelor s degree was about $38,000, with 39% of districts paying the minimum salary of $36,000. Consequently, the LEARNS Act elevated beginning teacher salaries to $50,000, eliminating much of the variation in starting teacher salaries across districts (97% of districts now pay entry salaries for those holding a bachelor's degree at the new minimum). We found that districts followed three approaches for adjusting teacher compensation in response to the LEARNS Act: Districts whose salaries were all lower than the new minimum for all steps during the 2022-23 school year transitioned to flat salary schedules in 2023-24 that pay the minimum of $50,000 regardless of teachers' years of experience (55% of districts). Districts with pre-LEARNS salary schedules that had some steps with salaries below $50,000 and others above adjusted by increasing pay to $50,000 for the cases paying below the minimum and providing a $2,000 raise for those cases paying above (36% of districts) Districts whose salary schedule was almost entirely above the new minimum of $50,000 adjusted after the LEARNS Act by keeping their existing schedules but increasing salaries by $2,000 for all their teachers (9% of districts). As a result, starting salaries for beginning teachers are now more equally distributed, with minimal variation across districts. However, more differentiation in pay reappears as teachers gain experience, and it remains advantageous to work in more urban districts that continue to offer higher salaries to their experienced teachers. The Learns Act also provides substantially more funding to rural and higher-poverty districts. The legislation eliminates the previously observed negative and significant association between starting teacher salaries and higher rates of district poverty. However, although half in size, this association re-emerges among teachers with higher levels of experience. In contrast, despite these positive improvements to teacher salaries, an interrupted time series with dosage analysis reveals that the immediate effects on teacher retention and mobility have been limited in this first year of implementation of the new legislation. Next, we will study the reform's effects on new teachers' location for their first job as well as the potential effects in alleviating teacher shortages. Our work will inform education leaders as they navigate new flexibility in designing teacher compensation policies.