What Is the Oklahoma Minimum Wage?

The Oklahoma minimum wage is currently $7.25 per hour, in line with the federal minimum wage. Twenty states use the federal minimum wage of $7.25 including Alabama, Georgia, Indiana, Kentucky, Louisiana, North Carolina, Pennsylvania, Tennessee, Texas, Wisconsin, and Oklahoma. 30 states have state minimum wages that are above the federal minimum wage, such as California, Florida, and Massachusetts.

The Oklahoma minimum wage applies to most workers in the state unless they are exempt under specific federal or state laws.

Specifically, Oklahoma employers with ten or more full-time employees at any one location or employers with annual gross sales over $100,000 must offer the following minimum hourly wage:

$7.25 per hour. This is the federal minimum wage, and it applies to most workers in Oklahoma.
$2.13 per hour. This rate typically applies to workers who earn tips, such as servers. Under federal law, employers can pay tipped employees a lower cash wage as long as the sum of the cash wage and tips received is at least equal to the federal minimum wage of $7.25 per hour. If the combined amount of the tips and the $2.13 cash wage does not equal at least $7.25 per hour, the employer must make up the difference.

However, the Oklahoma minimum wage has remained as above since 2009, so it has become much harder for low-wage workers to keep up with the rising cost of living. Because of this stagnation, there have been more efforts to raise the Oklahoma minimum wage, including a proposed initiative known as State Question 832.

What Is State Question 832?

State Question 832 is a proposed initiative that aims to amend the Oklahoma Minimum Wage Act and increase the state’s minimum wage.

The amendment, if approved, would gradually raise the Oklahoma minimum wage from the current rate of $7.25 per hour to:

$9 per hour by 2025
$10.50 per hour by 2026
$12 per hour by 2027
$13.50 per hour by 2028
$15 per hour by 2029.

After reaching $15 per hour, the minimum wage would then be adjusted annually based on inflation.

This petition was submitted to the Oklahoma Secretary of State’s Office this month with nearly 180,000 signatures, surpassing the 92,263 needed to get on a state ballot. The Secretary of State’s Office now has 90 days to officially count and verify the petition’s signatures. Once verified and approved, SQ 832 will either be included in November’s general election ballot, or a special election will be held.

Watch this space for updates!

Are Any Employees Exempt from the Oklahoma Minimum Wage?

Since Oklahoma does not have a state-specific minimum wage and follows the federal minimum wage of $7.25 per hour, the exemptions to the Oklahoma minimum wage are essentially the same as those outlined under federal law.

Here’s an overview of these exemptions:

Tipped employees. Firstly, you can pay tipped employees a reduced rate of $2.13 per hour. However, their tips must bring their total earnings to at least $7.25 per hour. If they don’t, then you must cover the tip deficit.
Student workers. Secondly, you can pay full-time college or high school students 85% of the Oklahoma minimum wage. However, students must be enrolled in a work-study program or work 20 hours (or less) per week.
Young workers. In addition, you can pay employees under 20 a reduced rate of $4.25 per hour during the first 90 days of employment. After 90 days, you must pay them the full Oklahoma minimum wage.
Employees with disabilities. Finally, you can pay employees with a disability a lower rate. However, you must first obtain a certificate from the U.S. Department of Labor. This special permission allows employers to pay wages based on the productivity of the worker.

What Other Oklahoma Wage Laws Are There?

Aside from the Oklahoma minimum wage, the state has a number of additional wage laws that employers need to understand as these can have an impact on an employee’s wages.

Let’s explore these additional Oklahoma wage laws in a bit more detail so you can make sure your employee handbook meets all requirements.

Overtime Pay

Oklahoma follows federal overtime pay laws under the Fair Labor Standards Act (FLSA). This means that you must offer eligible employees overtime pay if they work beyond their contracted hours.

To determine if an employee is eligible or exempt, you first need to determine what their FLSA status is.

Consider the following:

Salary level. Firstly, are you paying the employee more than $43,888 per year?
Salary basis. Secondly, do you offer them a guaranteed minimum compensation amount, regardless of the hours they work?
Duties: Finally, have you contracted them to perform an exempt job duty? (Professional duties that require specialized education; executive duties such as supervising a team; or administrative duties that require the use of discretion and judgment)

If an employee meets the above criteria, then they are considered exempt from the FLSA and you have no obligation to pay them overtime if they work over their contracted hours. However, if your employees are non-exempt (they do not meet any of the above criteria) then you must follow the FLSA’s overtime rules. Essentially this means that you must offer overtime pay for any hours worked over 40 in a workweek at a rate not less than time and a half.

Payday Requirements

According to Oklahoma Wage Law, you must pay all non-exempt employees their due wages at least twice each calendar month on scheduled paydays (semimonthly or biweekly). Each payment of wages must include an itemized statement of deductions.

If you hire state, county, or municipal employees, you must pay them at least once each calendar month.

Wage Deductions

You can only legally make deductions from an employee’s wages under certain conditions.

Accepted reasons include:

Mandatory deductions. As an employer, you must deduct state and federal taxes. You must also deduct FICA (Social Security and Medicare) contributions. Check out this payroll checklist for more information.
Court-ordered deductions. You must withhold wages if a court orders you to do so.
Agreed deductions. Employers and employees can agree to certain deductions if they have a written and signed agreement. These can include:
- Repaying a loan or advance, or recovering a payroll overpayment
- Cost of merchandise bought by the employee
- Uniforms
- Insurance premiums
- Contributions to retirement or investment plans
- Costs for breakage, loss of merchandise, inventory shortages, or cash shortages (the employee must be solely responsible for the loss or damage)

Child Labor Laws

The minimum age to be employed in Oklahoma is 14 years. The only exception to this is if a child is working in a family business or performing certain agricultural jobs. Children under 14 can also work as actors or performers.

In addition, all Oklahoma students who are 14 and 15 years of age must obtain a work permit (also known as an employment certificate) before getting a job or participating in work-based learning.

Meal and Rest Breaks

Oklahoma employment laws include federal guidelines for work breaks, ensuring employees have time to rest and recharge during their shifts.

Here’s what you need to know:

Meal breaks. Firstly, employees under the age of 16 must receive a 30-minute break for every 5 consecutive hours of work.
Short breaks. Secondly, while Oklahoma law does not mandate short rest breaks (typically 5 to 20 minutes), federal standards encourage employers to offer them. When provided, employers must compensate these short durations as work time.
Health and safety. Finally, for certain industries (such as those involving continuous operations or heavy machinery), breaks may be regulated by specific health and safety requirements (including working hours limits) to prevent accidents and ensure worker wellbeing.

Final Paycheck

Oklahoma requires that final paychecks be sent either on the next scheduled payday or within 14 days, whichever is later. The final paycheck must include all wages earned up to the date of termination or resignation. This includes any accrued but unpaid vacation or other paid time off (PTO) if stated in the worker’s employment contract.

Reporting and Recordkeeping

Employers must comply with both federal and state laws when it comes to employment recordkeeping. These laws are designed to ensure that accurate records of employee information and employment activities are maintained for compliance, transparency, and legal purposes.

Specifically, Oklahoma employers must maintain a record of the following information for a period of at least 3 years:

Employee personal information, including name, address, Social Security number, and birth date (if under 19).
Wage and hour records, including hours worked, wages paid, total earnings per pay period, and payment dates.
Payroll records, including total additions to or deductions from wages each pay period and written agreements related to wage deductions.
Employment agreements and contracts.
Records of leave. This includes sick leave, vacation, and other time off (PTO and unpaid time off), with reasons for leave if applicable.
Tax records, including federal, state, and local tax withholdings. Also includes W-2 and W-4 forms, and tax payments made on behalf of employees.
OSHA records of workplace injuries and illnesses.

In addition to the above, employers must report the following information:

Wages and taxes. Firstly, you must report all employee wages and taxes to the Oklahoma Employment Security Commission (OESC) on a quarterly basis.
New hires. Secondly, you must report all new hires and rehired employees to the Oklahoma New Hire Reporting Center within 20 days of the hire date.
Workplace injuries and illnesses. Finally, you must report all work-related injuries and illnesses to the Oklahoma Workers’ Compensation Commission.

Pay Equity

Finally, the Pay Equity Law in Oklahoma is designed to ensure equal pay for all employees, regardless of gender. The Oklahoma statute prohibits wage discrimination based on sex for jobs requiring comparable skill, effort, and responsibility, performed under similar working conditions. This aligns with the provisions of the federal Equal Pay Act.

Who Enforces Oklahoma Wage Laws?

The Oklahoma Department of Labor (ODOL) is the main state agency responsible for enforcing wage and hour laws in Oklahoma. The ODOL oversees the implementation of state-specific labor laws, including regulations on child labor, wage payment, and workplace safety. The ODOL also provides support and resources to workers and employers within the state.

However, given that Oklahoma follows the federal minimum wage rate, the Wage and Hour Division (WHD) of the U.S. Department of Labor (DOL) also plays a significant role in enforcing wage laws in the state, including the Oklahoma minimum wage. Key responsibilities include conducting investigations to ensure compliance with the FLSA and enforcing legal action against employers who violate minimum wage laws, including recovering back wages and imposing penalties.

Best Practices for Employer Wage Law Compliance

And that’s pretty much everything you need to know about the Oklahoma minimum wage and the state’s additional wage laws. All that’s left now is to make sure that your business meets the legal requirements of these laws.

With this in mind, we’ve put together a handy list of essential tips and best practices to help you protect your business from potential non-compliance fines and penalties:

Monitor working hours. Firstly, track and calculate employee working hours and make sure you pay non-exempt employees overtime pay if they work beyond 40 hours in a week. Factorial’s time tracking feature enables real-time monitoring of working hours, including overtime. This allows you to maintain and generate accurate records and reports and identify and address any issues promptly, ensuring compliance with overtime and time-tracking requirements.
Maintain detailed records. Secondly, keep comprehensive records of all hours worked, wages paid, and deductions for at least three years. Factorial’s HRIS automates recordkeeping, storing all data in a centralized digital format for easy access and compliance with record retention laws.
Schedule employee breaks properly. In addition, make sure you provide the required 30-minute unpaid meal break for employees working six consecutive hours. Factorial’s scheduling software manages and schedules breaks effectively, ensuring compliance with Oklahoma’s break regulations.
Implement an effective payroll system. Finally, ensure compliance with the Oklahoma minimum wage by regularly updating your payroll systems. Factorial’s payroll software automatically updates wage rates, ensuring compliance and reducing underpayment risks. What’s more, the feature integrates seamlessly with our time-tracking and scheduling software, making it easy to monitor employee hours, manage overtime, and schedule required breaks. This comprehensive approach helps you maintain accurate records and adhere to all Oklahoma minimum wage laws, protecting your business from legal issues and ensuring fair treatment of your employees.

What Is the Oklahoma Minimum Wage?

U.S. Minimum Wage Tiers

Federal Minimum Wage

State Minimum Wages

Municipal Minimum Wages

Federal Minimum Wage: Timeline

Key Milestones in the History of the Federal Minimum Wage