As Oklahoma enters 2025, several significant updates to state labor laws have been enacted, impacting both employers and employees. These changes address wage standards, workplace safety, taxation, and employee rights.
Here’s a comprehensive overview of the key labor law updates in Oklahoma for 2025.
Overtime Exemption Salary Threshold Increased
Effective January 1, 2025, Oklahoma has aligned with federal standards by raising the minimum salary threshold for overtime exemptions. The new threshold is set at $1,128 per week ($58,656 annually), up from the previous $684 per week ($35,568 annually). This adjustment means more employees will qualify for overtime pay, as those earning below this threshold are now entitled to overtime compensation under the Fair Labor Standards Act (FLSA).
Expansion of Tip, Meal, and Lodging Credits
Starting November 1, 2025, Oklahoma’s Minimum Wage Act has been amended to allow employers to credit tips, gratuities, meals, or lodging received by nonexempt employees toward the minimum wage requirement. This applies as long as the employer pays the minimum direct cash wage required under federal law. If the Oklahoma minimum wage exceeds the federal minimum wage, credit can also be given for these benefits.
Changes in Workers’ Compensation Coverage
Senate Bill 1076, effective November 1, 2025, introduces exclusions from the definition of “employee” under Oklahoma’s Administrative Workers’ Compensation Act. Notably, dependent children of farm or agricultural business owners employed on the farm are excluded from workers’ compensation coverage. Additionally, individuals working in temporary arrangements to observe a work environment and gain work experience without expecting pay are also excluded.
Reduction in Unemployment Tax Rates
Senate Bill 911, effective November 1, 2025, provides tax relief to Oklahoma employers by reducing the taxable wage base and tax rate table used to calculate unemployment taxes. This reduction lowers the upper limit rate by almost 3%, decreasing the risk and volatility of insurance rate hikes and providing a more predictable economic environment for businesses in Oklahoma.
Mobile Device Use While Driving
House Bill 2263, effective November 1, 2025, enacts a law making certain uses of cellular phones and electronic communication devices unlawful on specific roads, with certain exceptions provided. This legislation aims to enhance road safety by limiting distractions for drivers.
Paid Maternity Leave for Eligible Employees
A new law effective November 1, 2025, allows eligible employees to receive six weeks of paid maternity leave after giving birth, with a possibility of extension using accrued sick leave. This development marks a significant step in supporting working parents and promoting family-friendly workplace policies in Oklahoma.
Labor Law Poster Requirements
Oklahoma businesses are required to display certain labor law posters in the workplace. These posters provide employees with information about their rights and protections under state and federal labor laws. Employers should ensure that all required posters are up to date and prominently displayed.
Electronic Labor Law Poster Compliance
For businesses with remote or distributed workforces, Oklahoma labor law allows for the electronic distribution of mandatory workplace notices. To comply, employers must ensure that all employees have access to these electronic notices without barriers and that electronic communication is the standard method for sharing workplace information.
Tax Relief for Employers
Senate Bill 911, effective November 1, 2025, provides tax relief to Oklahoma employers by reducing the taxable wage base and tax rate table used to calculate unemployment taxes. This reduction lowers the upper limit rate by almost 3%, decreasing the risk and volatility of insurance rate hikes and providing a more predictable economic environment for businesses in Oklahoma.
Business-Friendly Legal Reforms
Oklahoma has introduced legal reforms to attract corporate incorporations, challenging Delaware’s long-standing dominance as the preferred state for business registration. These changes include the establishment of business courts in the state’s two most populous counties, aiming to provide a more favorable legal environment for businesses operating in Oklahoma.
Conclusion
Oklahoma’s labor law updates in 2025 reflect a commitment to modernizing workplace regulations, enhancing employee protections, and fostering a business-friendly environment. Employers and employees alike should familiarize themselves with these changes to ensure compliance and to take full advantage of the new provisions. Staying informed about labor law updates is crucial for maintaining a fair and efficient workplace in Oklahoma.
