Oklahoma's tipped wage is $3.625 per hour, higher than federal.
Oklahoma law mandates a cash wage of $3.625 per hour for tipped employees, which represents 50% of the state's effective minimum wage for larger employers. This state-specific requirement exceeds the federal minimum tipped wage of $2.13 per hour. Employers must ensure that an employee's total compensation, including tips, meets or exceeds the applicable minimum wage rate of $7.25 per hour.
Oklahoma Tipped Wage $3.625
Ensures tipped employees receive a cash wage of $3.625/hour, with total compensation reaching the full minimum wage.
What those rules do as a Oklahoma shift is created.
Teambridge automatically incorporates Oklahoma's tipped wage requirements into your payroll and compliance workflows. Our system ensures that all shifts involving tipped employees are correctly calculated to meet state standards, proactively preventing compliance issues.
Minimum Cash Wage Enforcement
For every shift worked by a tipped employee, Teambridge verifies that the employer's cash contribution is at least $3.625 per hour, automatically flagging any underpayments before payroll is processed.
Total Compensation Check
Our system calculates the sum of the cash wage and reported tips for each shift. If the combined amount falls below the $7.25 state minimum wage, Teambridge automatically adjusts the employer's contribution to cover the difference, ensuring full compliance.
Documentation and Reporting
Teambridge maintains detailed records of cash wages, reported tips, and any employer adjustments made to meet the minimum wage, simplifying audits and ensuring transparent compliance reporting for Oklahoma.
Deploy Oklahoma compliance for your business.
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Oklahoma's $3.625 Tipped Minimum Wage
Oklahoma's wage and hour rules in 2026 are defined by structural duality. The Oklahoma Minimum Wage Act ($7.25 federal floor) applies to employers with 10 or more full-time employees or $100,000 or more in gross annual sales; smaller non-FLSA-covered employers fall to a $2.00 sub-minimum. The tipped wage is $3.625 per hour, which is 50% of the state's effective minimum wage and notably higher than the federal $2.13. State preemption (40 O.S. § 160, SB 1023 of 2014) blocks all local wage and leave ordinances. State Question 832 on the June 16, 2026 ballot would raise the minimum wage to $12.00 effective January 1, 2027 (then $13.50 in 2028, $15.00 in 2029, with CPI thereafter). Layered on top is the Oklahoma Protection of Labor Act (40 O.S. §§ 165.1-165.9) with semi-monthly pay frequency, written deduction authorization, and next-payday final pay; there is no state overtime law, so federal FLSA controls.
40 O.S. 197.16 — Tipped Employee Minimum Wage
Every employer shall pay to each employee engaged in any occupation in the State of Oklahoma, not specifically excepted, wages at a rate of not less than Seven Dollars and Twenty-five Cents ($7.25) per hour. An employer may pay a tipped employee not less than three dollars and sixty-two and one-half cents ($3.625) per hour if the employer is able to establish that the total of the tips received by each tipped employee when added to the cash wages paid by the employer is equal to or exceeds the minimum wage rate of Seven Dollars and Twenty-five Cents ($7.25) per hour. The employer shall make up any difference if the total of the tips received by the tipped employee when added to the cash wages paid by the employer is less than the minimum wage rate of Seven Dollars and Twenty-five Cents ($7.25) per hour.
Understanding the Tip Credit
Oklahoma law allows employers to take a tip credit against the minimum wage obligation for tipped employees, provided certain conditions are met. The maximum tip credit an employer can claim is $3.625 per hour, which is the difference between the $7.25 state minimum wage and the $3.625 cash wage. It is crucial that employers inform employees of the tip credit provision and that all tips received by the employee are retained by them, except for valid tip pooling arrangements among employees who customarily and regularly receive tips.
Employer Obligations and Documentation
Employers of tipped employees in Oklahoma must maintain accurate records of cash wages paid, tips received by each employee, and any additional amounts paid by the employer to ensure the minimum wage is met. These records are essential for demonstrating compliance with state and federal wage laws. Failure to meet the $7.25 total compensation requirement for tipped employees means the employer is liable for the difference and potentially subject to penalties.
Teambridge handles Oklahoma tipped wages automatically.
Teambridge integrates Oklahoma's tipped wage rules directly into your operational processes, from scheduling to payroll. Our platform ensures that every tipped employee's compensation is compliant without manual calculations or constant monitoring, giving you peace of mind.
Automatic Tipped Wage Application
When a shift is created for a tipped role in Oklahoma, Teambridge automatically applies the $3.625 cash wage rate, setting the correct base pay for the employee.
Tip Reporting & Verification
Employees report tips through the Teambridge app. Our system then aggregates these tips with the cash wage, checking against the $7.25 minimum wage threshold.
Automatic Wage Adjustment
If reported tips plus the $3.625 cash wage do not meet $7.25, Teambridge automatically calculates and adds the necessary 'tip make-up' pay to the employee's wages for that period.
Audit-Ready Documentation
All wage components, including cash wage, tips, and make-up pay, are meticulously recorded and accessible for audit and compliance reporting, ensuring full transparency.