Oklahoma Minimum Wage in 2023: What You Need to Know

 

In the current year, discussions about raising the minimum wage in Oklahoma are prevalent. As a business owner, it's crucial to remain well-informed on this subject. Not only is compliance with the Fair Labor Standards Act (FLSA) important, but keeping up with any changes to Oklahoma's minimum wage allows you to make informed decisions about your business's future. 

We've prepared a guide to help you understand the status of Oklahoma's minimum wage. 

Understanding the Minimum Wage 

The minimum wage is the lowest hourly wage established by federal law that employers can legally pay their workers. It serves as a legally mandated minimum wage floor that nonexempt workers must not work for or accept wages below. 

Oklahoma's Minimum Wage in 2023 

Oklahoma's minimum wage for employers in 2023 is $7.25 per hour, aligning with the federal minimum wage set by the Fair Labor Standards Act. While these are the historical and current Oklahoma minimum wage rates according to the US Labor Law Center, various towns and counties in Oklahoma have enacted their minimum wage laws, setting higher minimum wage standards for workers within their jurisdiction. For instance, Oklahoma City enforces a $11.50 minimum wage for employees working within the city limits, and Norman has set a minimum wage of $12.00 per hour for those working within the city's boundaries. It's essential for employees and employers to be aware of the specific minimum wage regulations that apply to them, as these regulations can differ depending on the location. 

It's worth noting that debates and discussions regarding Oklahoma's minimum wage, including calls for potential increases, have occurred in recent years. Any changes to the minimum wage in Oklahoma would necessitate legislative action and would be influenced by factors such as economic conditions, political considerations, and public sentiment regarding fair wages. 

Average Wages in Oklahoma 

Average wages in Oklahoma vary according to occupation and industry. In 2023, the average hourly wage in Oklahoma is $19.89, resulting in an annual salary of $41,371. These figures fluctuate significantly depending on the occupation. For instance, the average hourly wage for a retail salesperson in Oklahoma is $11.81, whereas a registered nurse earns an average hourly wage of $28.79. 

In general, the highest-paying industries in Oklahoma include healthcare, banking, and energy. For example, a healthcare administrator in Oklahoma receives an average annual salary of $89,000, while a financial analyst earns an average annual income of $74,000. On the other hand, the lowest-paying industries in Oklahoma are typically retail and food service. 

How Small Businesses and Restaurants in Oklahoma Can Comply with Minimum Wage Laws 

The restaurant industry, in particular, has historically relied more on minimum wage workers than other sectors due to its narrow profit margins, which typically range from 3% to 5%. Other industries with substantially higher profit margins have historically been better equipped to offer higher wages. To make working in the restaurant industry a viable and attractive option for employees, businesses need to find ways to not only meet but exceed the minimum wage. 

Strategies for Small Businesses and Restaurants: 

Price Adjustments: Many restaurants have had to increase prices to cover rising ingredient costs, which might need to be done again, and to provide fair wages to employees. 

Menu Optimization: Reducing menu items and focusing on popular and profitable offerings can cut down on food waste and inventory expenses. 

Ingredient Efficiency: Ensure ingredients are used in multiple menu items to minimize waste. 

Service Charges: Adding a percentage or fixed amount service charge to each bill and explaining how it supports competitive wages can help offset costs. 

Automatic Gratuities: Implementing automatic gratuities can ensure more consistent income distribution among staff. 

Preparing for Minimum Wage Changes as a Small Business Owner 

As an employer in Oklahoma, being ready for a potential minimum wage increase is essential. Here are some guidelines to help you prepare for such a change: 

Expense Review: Thoroughly review your business expenses to identify areas where you can cut costs. 

Hiring Practices: Invest in hiring the right people to reduce recruitment and training expenses. Candidates with strong track records who align with your company culture can lower turnover rates. 

Price Adjustments: Assess whether price increases are necessary to match rising labor costs, while being mindful of customer expectations. 

Technology Upgrades: Consider adopting cost-effective technologies tailored to small businesses to improve efficiency in areas like payroll management. 

Whether it's adapting to the Oklahoma minimum wage or obtaining an Employer Identification Number (EIN), Restaurantify is here to support you in enhancing and expanding your small business.