Introduction to employment laws in Oklahoma
Overview
Labor laws in Oklahoma are shaped by a combination of federal regulations and state-specific statutes designed to protect both employees’ rights and employers’ interests. Understanding Oklahoma employment laws is crucial for businesses entering this market.
In this guide, we’ll help keep you compliant as you onboard and manage workers in Oklahoma.
Employing in Oklahoma: Key employment laws and practices
Standard work hours
In Oklahoma, the understanding of full-time employment varies across industries. However, consistent with the federal Fair Labor Standards Act (FLSA), most recognize a full-time workweek as 40 hours over five days.
There are no explicit state regulations specifying standard hours for contractual workers and self-employed professionals. Businesses should exercise fairness when defining work hours for these categories of workers, considering industry norms and workload requirements.
Minimum wage and overtime
In compliance with federal regulations, Oklahoma maintains a minimum wage of $7.25 per hour. Employers with a gross annual income of more than $100,000 or who employ more than ten full-time employees must pay this rate.
For tipped employees, the minimum cash wage stands at $3.63 per hour, and for younger workers (under 20), it’s $4.25 per hour for the first 90 calendar days of employment.
Overtime regulations in Oklahoma follow the FLSA guidelines. Employees working beyond 40 hours a week are entitled to an overtime pay rate of 1.5 times their regular pay.
Exemptions apply to certain categories, such as executive or managerial roles and certified professionals.
Insurance and benefits
Oklahoma law does not explicitly mandate employers to provide health, dental, or vision insurance to their employees beyond what federal law requires. However, providing these benefits can improve employee satisfaction and retention. It’s also essential to be aware of state regulations surrounding retirement benefits and 401k contributions.
Under Oklahoma employment laws, contributions to unemployment insurance range from 0.30% to 9.20%, applied on salaries up to $27,000 annually. Employers must obtain workers’ compensation insurance. Employers are also responsible for a 6.20% FICA Social Security contribution on salaries up to $168,000 annually, while employees contribute an equivalent amount.
Benefit | Requirement | Details |
Health insurance | Not mandated by state law beyond federal requirements | Optional |
Dental insurance | Not mandated by state law beyond federal requirements | Optional |
Vision insurance | Not mandated by state law beyond federal requirements | Optional |
Retirement benefits/401(k) | Not mandated by state law | Optional |
Unemployment insurance | State-mandated | Contribution rates range from 0.30% to 9.20%, applied to salaries up to $27,000 annually. |
Workers’ compensation insurance | State-mandated | Employers must obtain workers’ compensation insurance. |
FICA Social Security | Federally mandated | Employers contribute 6.20% on salaries up to $168,000 annually; employees contribute an equivalent amount. |
Medicare | Federally mandated | Employers and employees each contribute 1.45% of all earnings (no wage limit). |
Multiplier makes it easy to manage benefits for Oklahoma employees.
Meal and rest periods
Oklahoma employment laws do not specify a required number of meal or rest breaks for employees age 16 and older. Workers under the age of 16 must be given a 30-minute break for every five hours worked and a one-hour break for every 8 hours worked.
The Fair Labor Standards Act (FLSA) at the federal level otherwise provides guidance. The FLSA does not mandate meal or rest breaks, but if an employer chooses to provide short breaks (usually 20 minutes or less), they must be paid. Longer meal breaks (typically 30 minutes or more) do not need to be compensated and the employee must be completely relieved of duties during this time to qualify.
Anti-discrimination laws
Oklahoma employment laws uphold strong anti-discrimination protections in the workplace. These laws prohibit discrimination based on protected classes such as race, color, religion, sex, age, national origin, genetic information, and disability. The Oklahoma Anti-Discrimination Act (OADA) enforces these protections for employers with one or more employees.
In addition to state laws, federal laws also protect workers from discrimination. The Equal Employment Opportunity Commission (EEOC) enforces federal laws like Title VII of the Civil Rights Act of 1964 and the Americans with Disabilities Act (ADA). These federal laws tend to offer broader protections and cover more businesses than state laws.
Oklahoma extends protection against discrimination based on sexual orientation and gender identity, although these are not explicitly stated in state law.
Leave policies
Oklahoma does not have a state statute mandating vacation time for employees. The decision to offer paid or unpaid vacation leave is generally left up to individual employers.
Sick leave is not mandated by Oklahoma employment laws. However, under the federal Family and Medical Leave Act (FMLA), eligible employees are entitled to take up to 12 weeks of unpaid, job-protected leave for certain family and medical reasons.
Parental and maternity leave are generally covered under the FMLA at the federal level. Eligible employees can take up to 12 weeks of unpaid, job-protected leave for the birth or placement of a child.
Other types of leave protected under Oklahoma employment laws include jury duty, military service, voting, and court appearances. These leaves are typically unpaid but job-protected.
Leave type | Coverage |
Sick leave | Covered federally by FMLA |
Parental and maternity leave | Covered federally by FMLA |
Jury duty, military service, voting | Protected under state law, various stipulations apply |
Easily onboard employees in Oklahoma?
Termination laws
Oklahoma follows an “at-will” employment doctrine. This means that employers and employees can terminate the employment contract at any time without giving prior notice or reasons unless an employment contract or collective bargaining agreement states otherwise.
Furthermore, though there’s no official notice period in Oklahoma, it is common practice for employees to give at least two weeks’ notice of resignation. In cases of mass dismissal, employers must follow the Worker Adjustment and Retraining Notification Act (WARN Act) and give 60 days’ notice to affected employees.
Oklahoma employment laws do not require employers to offer severance pay to terminated employees.
Safety and health
Workplace safety is a critical aspect of employment law in Oklahoma. Employers are obligated to provide a safe and healthy work environment for all employees. This includes adhering to Occupational Safety and Health Administration (OSHA) standards, which cover things like hazard communication, record-keeping requirements, and specific health and safety standards for certain industries.
If an employee is injured on the job in Oklahoma, employers must report the injury to the Oklahoma Department of Labor. Additionally, employers with one or more employees are required to maintain workers’ compensation insurance.
Taxes in Oklahoma
Under federal and state law, both employers and employees have tax obligations. In Oklahoma, employers are responsible for withholding state income tax from employee wages.
In addition to state taxes, employers must also withhold federal income tax, Social Security tax, and Medicare tax. Employers also pay Federal Unemployment Tax Act (FUTA) taxes, state unemployment insurance taxes, and potentially an employment training tax.
Employees contribute 6.2% for Social Security and 1.45% for Medicare, and may also pay an additional 0.9% for Medicare if their income exceeds $200,000.
|
Tax type |
Employer contribution |
Employee contribution |
|
State income tax |
Withheld from employee wages |
Paid per Oklahoma tax tables |
|
Social security |
6.2% up to $160,200 |
6.2% up to $160,200 |
|
Medicare |
1.45% |
1.45%, plus additional 0.9% over $200,000 |
|
FUTA (Federal Unemployment Tax Act) |
0.6% up to $7,000 |
N/A |
|
State Unemployment Insurance (Oklahoma) |
0.3% – 9.2% on up to $27,000 |
N/A |
Managing Oklahoma employees with an Employer of Record (EOR)
Hiring employees in Oklahoma requires navigating a complex mix of state and federal employment laws, which can be daunting for expanding businesses.
That’s where Multiplier steps in. As a comprehensive Employer of Record (EOR) solution, we enable you to legally and compliantly employ full-time workers in Oklahoma without the need to set up local entities.
In addition, our Global Payroll Platform allows you to pay your Oklahoma-based employees and contractors while efficiently handling local taxes, contributions, and withholdings. Plus, our platform makes it easy to administer globally compliant benefits, including insurance coverage and pension plans.
Want to see how we can streamline your HR processes firsthand? Book a demo today.
FAQs
Working hours in Oklahoma are primarily regulated by the federal Fair Labor Standards Act (FLSA). Although there is no specific law in Oklahoma defining full-time employment, it’s generally considered to be between 30 and 40 hours per week.
Under the FLSA, non-exempt employees working more than 40 hours in a week are entitled to overtime pay at 1.5 times their regular pay rate. Certain employees may be exempt from overtime if they earn above the federal exemption threshold of $684 per week and perform executive, managerial, or certified professional duties.
The minimum wage for private sector employees in Oklahoma is currently $7.25 per hour, which aligns with the federal minimum. However, for Oklahoma employees who do not meet specific criteria, such as full-time students, the state minimum wage is $2.00.
Oklahoma doesn’t have any state statute governing vacation time, so it’s up to employers to decide whether to offer this benefit. For sick leave, employers commonly follow the Family and Medical Leave Act (FMLA), providing certain employees with up to 12 weeks of unpaid job-protected leave for specific family and medical reasons. Public holidays are also not mandatory paid days off, but employers often allow workers to take federal holidays as paid days off.
In Oklahoma, most employment relationships are at-will, meaning either party can end the relationship without notice or reason unless specified otherwise in an employment contract or collective bargaining agreement. However, in mass dismissal cases, employers must follow the Worker Adjustment and Retraining Notification Act (WARN Act) and give 60 days’ notice to impacted employees. It is not required for employers to offer severance payments unless specified in an employment contract, but many choose to provide severance pay based on length of service.
