Oklahoma's Minimum Wage: A Dual-Tier System
Oklahoma's minimum wage landscape is characterized by a dual-tier structure, aligning with the federal floor of $7.25 per hour for most employers. However, a distinct lower tier exists for smaller, non-FLSA-covered businesses. The upcoming State Question 832 on the June 2026 ballot introduces significant potential changes, aiming to incrementally increase the state minimum wage to $15.00 by 2029.
OK Minimum Wage Act $7.25 (Dual-Tier)
40 O.S. 197.2 — $7.25 for 10+ employees or $100K+ gross sales. Smaller non-FLSA employers fall to $2.00. SQ 832 on June 2026 ballot would raise to $12 in 2027.
What those rules do as a Oklahoma shift is created.
Teambridge's compliance engine automatically evaluates Oklahoma's minimum wage requirements for every shift, ensuring accurate compensation based on employer size, FLSA coverage, and any applicable sub-minimum wage provisions. This includes anticipating potential changes from upcoming ballot initiatives.
Determines Applicable Minimum Wage
For each shift, Teambridge assesses the employer's size (10+ employees or $100K+ gross sales) and FLSA coverage to apply either the $7.25 federal floor or the $2.00 sub-minimum wage for smaller, non-FLSA-covered entities.
Monitors Ballot Initiative Impact
Teambridge proactively tracks the status of State Question 832. If passed in June 2026, the system will automatically implement the new wage tiers ($12.00 in 2027, $13.50 in 2028, $15.00 in 2029) effective January 1, 2027, and subsequent CPI adjustments.
Applies Tipped Wage Correctly
For employees categorized as tipped, Teambridge ensures the Oklahoma tipped minimum wage of $3.625 per hour (50% of the state's $7.25 minimum) is applied, which is notably higher than the federal tipped wage.
Compliance, on autopilot.
See how Teambridge can automate Oklahoma minimum wage compliance for your business.
Oklahoma's minimum wage mandates a two-tiered approach based on employer size and federal applicability.
Oklahoma’s minimum wage framework establishes distinct rates depending on whether an employer meets specific thresholds for federal FLSA coverage. This creates a nuanced compliance environment, further complicated by a pending state question that could significantly alter the wage structure.
40 O.S. § 197.2 – Minimum wage; exceptions; definition.
A. Every employer shall pay to each employee wages at a rate of not less than seven dollars and twenty-five cents ($7.25) per hour. This subsection shall not apply to employers who employ fewer than ten (10) full-time employees or have annual gross sales of less than one hundred thousand dollars ($100,000.00), unless such employers are subject to the federal Fair Labor Standards Act of 1938, as amended.
B. For employers not subject to the federal Fair Labor Standards Act of 1938, as amended, and who employ fewer than ten (10) full-time employees or have annual gross sales of less than one hundred thousand dollars ($100,000.00), the minimum wage shall be not less than two dollars ($2.00) per hour.
C. The minimum wage for employees who customarily and regularly receive more than thirty dollars ($30.00) a month in tips shall be three dollars and sixty-two and one-half cents ($3.625) per hour, provided that the employer ensures that the employee's total wages, including tips, meet or exceed the applicable minimum wage rate.
Dual-Tier Application and Employer Thresholds
The Oklahoma Minimum Wage Act dictates a primary rate of $7.25 per hour, mirroring the federal minimum wage. This rate applies to employers who either employ ten or more full-time employees, or have annual gross sales exceeding $100,000, or are otherwise covered by the federal Fair Labor Standards Act (FLSA). For employers falling below these thresholds and not subject to FLSA, a lower state-specific minimum wage of $2.00 per hour applies. This distinction requires careful assessment of an employer's operational scale and federal jurisdiction.
Tipped Employees and State Preemption
For employees who regularly receive tips, Oklahoma sets a tipped minimum wage at $3.625 per hour, which is exactly 50% of the $7.25 standard minimum. Employers must ensure that an employee's combined tips and direct wages meet or exceed the full minimum wage rate. Furthermore, Oklahoma law, specifically 40 O.S. § 160 (as amended by SB 1023 of 2014), establishes strong state preemption, explicitly prohibiting any local municipality or county from enacting its own minimum wage or paid leave ordinances. This centralizes wage regulation at the state level.
How Teambridge keeps your Oklahoma operations compliant, automatically.
Teambridge eliminates the complexity of Oklahoma's dual-tier minimum wage system, ensuring every employee is paid correctly, every time. Our platform integrates real-time legislative tracking with your operational data to apply the right wage, without manual intervention.
Automatic Tier Determination
Teambridge's system intelligently identifies whether your business falls under the FLSA-covered threshold or the smaller, non-FLSA-covered employer category, applying the correct $7.25 or $2.00 minimum wage to each employee's pay automatically.
Accurate Tipped Employee Calculations
For employees designated as tipped, Teambridge ensures the $3.625 Oklahoma tipped minimum wage is applied, with built-in safeguards to verify that total earnings (direct wage + tips) meet the full state minimum wage requirement.
Future-Proofing Your Payroll
Our platform continuously monitors legislative developments, including the upcoming State Question 832. Should it pass, Teambridge will automatically schedule and implement the new wage increases and CPI adjustments effective January 1, 2027, and beyond, ensuring seamless transition.
State Preemption Assurance
With Oklahoma's robust state preemption laws, Teambridge provides peace of mind that your operations are protected from conflicting local wage or leave ordinances, maintaining a consistent compliance posture statewide.
People also ask.
What is the current minimum wage in Oklahoma for most employers?
The current minimum wage in Oklahoma for most employers who are covered by the FLSA, or employ 10+ full-time employees, or have annual gross sales of $100,000+, is $7.25 per hour. This rate mirrors the federal minimum wage.
Is there a different minimum wage for small businesses in Oklahoma?
Yes, for employers who are not subject to the federal FLSA and who employ fewer than 10 full-time employees or have annual gross sales of less than $100,000, the minimum wage is $2.00 per hour.
What is the tipped minimum wage in Oklahoma?
The tipped minimum wage in Oklahoma is $3.625 per hour. Employers must ensure that an employee's total wages, including tips, meet or exceed the standard applicable minimum wage rate ($7.25 or $2.00).
Can cities or counties in Oklahoma set their own minimum wage?
No, Oklahoma law includes state preemption (40 O.S. § 160), which prohibits local governments from enacting their own minimum wage ordinances. Wage regulation is handled at the state level.
What is State Question 832 and how might it affect Oklahoma's minimum wage?
State Question 832 is on the June 16, 2026 ballot. If passed, it would raise Oklahoma's minimum wage to $12.00 per hour effective January 1, 2027, then to $13.50 in 2028, $15.00 in 2029, with subsequent annual adjustments based on the Consumer Price Index (CPI).
Does Oklahoma have its own overtime laws?
No, Oklahoma does not have separate state overtime laws. Overtime requirements for Oklahoma employees are governed by the federal Fair Labor Standards Act (FLSA).