Oklahoma Law Bans Local Minimum Wage Increases

Under a new Oklahoma law (OK SB 1023), cities and towns in that state are banned from raising the local minimum wage. The new law also bars localities from requiring employers provide employees a certain number of sick leave or vacation days, either paid or unpaid.

The new law is said to protect the state economy, consumers, small businesses and jobs from the high costs and even higher consequences of a hodge-podge of higher local minimum wage rates. In signing the law, Oklahoma’s Gov. Mary Fallin said that mandating minimum wage at the local level would result in job loss, drive away business, and raise prices for consumers. Conversely, Fallin observed that allowing local minimum wage rates would do little to boost workers’ standard of living since most jobs in the state pay more than the minimum wage and the affected jobs are held mostly by young, part-time workers.

Legislation proposing to raise the Oklahoma state minimum wage and a petition to place the issue of a statewide minimum wage increase is currently circulating but neither initiative has much momentum.