Oklahoma Minimum Wage Overview
Oklahoma follows the federal minimum wage standard, which is currently set at $7.25 per hour. This applies to most employees, with few exceptions based on occupation and business type. Oklahoma has not enacted a state-specific minimum wage that exceeds the federal rate, meaning employers must adhere to the national minimum wage guidelines established under the Fair Labor Standards Act (FLSA).
Employers with ten or more full-time employees at a single location, or those with annual gross sales exceeding $100,000 regardless of employee count, are required to pay the basic minimum wage of $7.25 per hour. For all other employers, the minimum wage rate is set at $2.00 per hour.
Workers earning tips may be paid a lower cash wage but are required to receive a minimum total pay equivalent to the federal wage when tips are included, we’ll dive deeper into this and other exemptions later in this blog.
Understanding US Minimum Wage Tiers
The U.S. federal minimum wage is set at $7.25 per hour, which has remained unchanged since 2009. States can choose to adopt this federal minimum or implement their own state-specific rates that are higher. However, Oklahoma follows the federal minimum wage of $7.25 per hour, which applies to most workers across the state.
The United States has a tiered system for minimum wages, where individual states, cities, and counties can set rates higher than the federal minimum. For instance, states like California and New York have set their minimum wages significantly above the federal level. However, Oklahoma has opted to align with the federal standard, meaning that it does not have a higher state minimum wage like some other states do.
Oklahoma Minimum Wage for Workers with Tips
In Oklahoma, tipped employees, such as servers and bartenders, must be paid a minimum cash wage of $2.13 per hour, according to federal standards. However, the total of their cash wage and tips must equal at least the federal minimum wage of $7.25 per hour. If tips do not bring the employee’s earnings up to this minimum, the employer is required to make up the difference. This ensures that tipped workers receive the same minimum wage protections as non-tipped employees.
Tipped employees’ wages can vary greatly based on the volume of customers and tipping practices, which makes it crucial for employers to closely monitor these earnings. It’s also essential for employers to maintain accurate records of tips to avoid falling out of compliance with wage laws.
Oklahoma Minimum Wage History
Oklahoma's minimum wage has been tied to the federal minimum wage since the enactment of the Fair Labor Standards Act (FLSA). The state has not passed legislation to establish a minimum wage above the federal level, meaning it has followed the federal increases over time. The last federal minimum wage increase occurred in 2009, raising the rate to $7.25 per hour.
Over the years, there have been discussions about raising the minimum wage in Oklahoma to address the rising cost of living, but no state-specific changes have been made. While some states have opted to enact higher minimum wage rates, Oklahoma continues to align with the federal wage.
Exemptions for Minimum Wage
While the standard minimum wage in Oklahoma is $7.25 per hour, there are several exemptions that apply to specific types of workers. These exemptions allow certain employees to be paid less than the standard minimum wage in particular circumstances.
Under 20 Training Wage
In Oklahoma, employers are permitted to pay employees under the age of 20 a training wage of $4.25 per hour during their first 90 days of employment. After 90 days or when the employee turns 20, they must be paid the standard minimum wage of $7.25 per hour.
Student Minimum Wage
Full-time students in Oklahoma may be paid a minimum wage of no less than 85% of the federal minimum wage, which is $6.16 per hour. This rate applies for up to 20 hours of work per week in jobs like work-study programs at universities.
Tipped Minimum Wage
As mentioned previously, tipped employees in Oklahoma, such as servers, can be paid a cash wage as low as $2.13 per hour. However, their total earnings, including tips, must equal at least the federal minimum wage of $7.25 per hour.
Best Practices and Tips for Compliance
Ensuring compliance with Oklahoma's minimum wage laws is essential for employers to avoid penalties and maintain a positive workplace. Here are some best practices and tips for staying compliant with minimum wage regulations in Oklahoma.
Regularly Review Wage Laws
Minimum wage laws can change over time, and it’s important to stay up to date with both federal and state requirements. Oklahoma follows the federal minimum wage of $7.25 per hour, but employers should monitor any potential changes to wage laws at the state or federal level by regularly consulting official resources like the U.S. Department of Labor.
Accurate Recordkeeping
Maintain detailed and accurate records of employee hours worked, wages paid, and any tips earned for tipped employees. This is essential not only for compliance with wage laws but also for resolving potential disputes and ensuring that all workers are paid fairly. According to federal law, records of wages and hours must be kept for at least three years.
Understand Exemptions and Special Cases
Make sure you understand the specific exemptions for workers, such as tipped employees, students, and training workers under 20 years old. Oklahoma allows lower wages for certain categories of workers, but strict guidelines apply to ensure employees ultimately receive at least the minimum wage where applicable.
Stay Transparent with Employees
Open communication with your staff about how wages, tips, and overtime are calculated can help prevent misunderstandings and build trust. Provide employees with clear, itemized pay stubs that show all deductions, tips, and hours worked.
How to Offer Fair Wages to Your Restaurant Staff
Providing fair wages to your restaurant staff can be a challenge, especially when operating on tight margins. Here are some ways to boost profitability so you can provide fair wages to your team.
Optimize Your Menu
Conduct a menu audit to identify your most profitable items and focus on promoting those. By removing or reworking low-margin or underperforming dishes, you can streamline operations, reduce waste, and increase the profitability of each order. Menu engineering techniques, such as using visual hierarchy to guide customer choices, can also encourage guests to choose higher-margin items.
Offer Upselling and Add-Ons
Train your staff to upsell items, such as appetizers, desserts, or beverages, which can increase the average check size. Offering add-ons like extra toppings, premium ingredients, or larger portions for a slight additional cost can also boost revenue without significantly increasing labor or food costs.
Strategically Increase Menu Prices
One of the most direct ways to increase profits is by raising menu prices. However, this must be done carefully to avoid losing customers. Start by adjusting prices on high-demand or high-margin items, or consider implementing small, incremental increases across the menu. Highlight the quality of ingredients or unique aspects of your dishes to justify the higher prices to customers.
Leverage Special Events and Promotions
Hosting special events, such as themed dining nights or happy hours, can attract more customers during typically slower periods. Promotions like prix fixe menus or bundled meal deals can increase foot traffic and sales, allowing you to generate additional revenue.
Increase Online Ordering Sales
Expanding your online ordering offerings with food delivery apps can be a significant revenue driver. Optimize your menu for delivery by focusing on popular items that travel well and have high margins.
Focus on Customer Retention
It’s more cost-effective to retain existing customers than to acquire new ones. Use strategies such as loyalty programs and email marketing to keep customers engaged with special offers and updates.
Additional Oklahoma Wage Laws
In addition to complying with minimum wage, Oklahoma employers must also follow other important laws related to minimum wage.
Oklahoma Overtime Minimum Wage
Employees who work more than 40 hours in a week are entitled to overtime pay. The overtime rate is set at 1.5 times the employee’s regular pay rate. For workers earning the minimum wage, this means they should be paid at least $10.88 per hour for any overtime hours worked. However, certain occupations may be exempt from overtime rules based on job duties or employment classification.
Oklahoma Minimum Wage & Labor Law Posters
All employers in Oklahoma are required to display official labor law posters in visible locations within the workplace. These posters inform employees of their rights, including minimum wage, overtime, and other labor laws. You can access the required and optional Oklahoma labor law posters here.
Upcoming Oklahoma Minimum Wage Adjustments
Currently, there are no scheduled increases to Oklahoma’s minimum wage. The state continues to follow the federal minimum wage of $7.25 per hour, which has not been adjusted since 2009. There have been discussions and proposals in recent years to increase the minimum wage, particularly to reflect the rising cost of living and inflation. Employers should stay informed about potential changes in the future, as shifts in wage laws could affect payroll costs and compliance requirements.
Oklahoma Minimum Wage FAQs
What is the minimum wage in Oklahoma?
The minimum wage in Oklahoma is currently $7.25 per hour, which aligns with the federal minimum wage.
When was the last time Oklahoma’s minimum wage increased?
The last time Oklahoma’s minimum wage increased was in 2009, when the federal minimum wage was raised to $7.25 per hour. Since Oklahoma follows the federal rate, it has remained the same since then.
What is the minimum wage for tipped employees in Oklahoma?
Tipped employees in Oklahoma must be paid a base cash wage of $2.13 per hour. However, their total earnings, including tips, must equal at least $7.25 per hour. If tips do not bring their wages up to this amount, the employer is required to make up the difference.
Are there any exceptions to the Oklahoma minimum wage?
Yes, certain workers, such as tipped employees, student workers, and employees under 20, may be paid less than the standard minimum wage under specific conditions.
What is the training wage for employees under 20 years old in Oklahoma?
Employees under the age of 20 can be paid a training wage of $4.25 per hour during their first 90 days of employment. After the 90-day period or when the employee turns 20, they must be paid the full minimum wage of $7.25 per hour.
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