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There’s a lot of discussion about minimum wage in Oklahoma this year. As a business owner, you should stay on top of the topic. Not only is it important to stay compliant with the Fair Labor Standards Act (FLSA), but also staying up to date with any Oklahoma minimum wage changes helps you plan your business’s future accordingly.
We’ve created a guide, just for you, to get a better understanding of what’s happening with the Oklahoma state minimum wage.
What is the minimum wage in Oklahoma in 2024?
At this time, the Oklahoma minimum wage is $7.25 per hour, which is the same as the federal minimum wage rate. Oklahoma hasn’t seen an increase in its minimum wage since 2008. That year, the rate went from $6.55 to $7.25, an increase of $0.70.
However, there are some Oklahoma minimum wage exemptions:
- Oklahoma’s tipped minimum wage is $3.63 per hour. Employers are allowed to take a tip credit of up to 50 percent. This means that employers can pay as little as $3.63 per hour as long as the employees earn enough tips to bring their total hourly wage up to the state’s minimum. This requirement also comes into effect in businesses that practice tip pooling.
- Employees under the age of 20 can be paid $4.25 per hour for the first 90 days.
- Part-time employees who are full-time high school or college students may be paid $6.16 per hour for certain jobs.
- There is also an exception for employees who are considered exempt under the Fair Labor Standards Act (FLSA)
What is the Oklahoma City minimum wage?
The minimum wage in Oklahoma City follows the same regulations as the Oklahoma minimum wage.
Will the minimum wage change in 2024 and beyond?
There are no plans to change the minimum wage rate in Oklahoma this year. Oklahoma uses the Consumer Price Index to evaluate inflation rates and whether the state’s minimum wage should increase or stay the same. This evaluation is supposed to occur every year. The state hasn’t changed its minimum wage rate since 2008.
How should small business owners prepare for changes to the minimum wage?
Make sure you’re prepared as an employer if the minimum wage in Oklahoma increases. Here are some tips to help you prepare for a change in Oklahoma’s minimum wage.
Audit your expenses: The best way to prepare for a state increase in minimum wage rates is to take a full look at your business expenses. Is there any given area where you can cut expenses?
Make the right hires: The cost of replacing employees can be significant, especially for a small business. You decrease the total cost associated with recruiting and training when you hire the right employees. Look for candidates with good track records, who come recommended, and who fit in with your company’s culture. Once they’re onboarded, make sure you build a relationship and provide paths for growth, ensuring you are keeping valuable employees.
Increase prices: Maybe you need to bring in more cash flow to keep up with the increasing wages of your employees. Take a look at the price trends for the products you’re selling, and determine whether you can reasonably raise prices. Remember, you don’t want to disappoint your customers with an unreasonable price hike.
Update your technology: Having new technology can help you save time and money, especially when you choose technology that is priced for small businesses. You can learn how to do payroll yourself, and save on hiring for that position. Square Payroll for small businesses has a ton of payroll features that allow you to get some time back and focus more on running your business than on doing paperwork.
Whether it is keeping up with Oklahoma minimum wage or making sure that you get an EIN, Square is here to help you not only improve but also grow your small business.