What Are the Key Oklahoma Employment Laws That Employers Need to Know?

Oklahoma employment law generally aligns with federal regulations but includes several key areas where state law provides greater protections for employees, particularly in anti-discrimination, health care continuation for small employers, and final wage payments. Employers operating in Oklahoma must comply with both federal and state statutes, and when laws overlap, the standard that offers the most significant rights or benefits to the employee applies. This guide outlines the core requirements impacting the employer-employee relationship in the state.

What Are the Key Anti-Discrimination and Equal Pay Laws in Oklahoma?

The Oklahoma Anti-Discrimination Act (OADA) sets the foundation for workplace fairness. This law prohibits discrimination based on race, color, religion, national origin, disability, age (40 and over), sex (including pregnancy), and genetic information. A critical point for employers to note is that the OADA applies to any employer with one or more employees, a lower threshold than some federal laws. It also explicitly prohibits harassment and retaliation.

Regarding compensation, Oklahoma’s equal pay law requires that employers pay female employees at a rate equal to male employees for comparable work requiring comparable skill, effort, and responsibility. Pay disparities are only permitted under specific systems, such as a seniority or merit system, or factors other than sex. Based on our assessment experience, documenting these factors clearly is essential for compliance.

What Are the Rules for Recruiting and Hiring in Oklahoma?

Oklahoma has specific statutes governing pre-employment screening. Employers are permitted to use credit checks and criminal background checks for employment screening, but must follow strict procedures.

• Credit Checks: Under the Credit Services Organization Act, employers must provide applicants with written notice that a consumer report will be used and inform them of their right to a free copy.
• Criminal Checks: The Oklahoma Open Records Act allows employers to access state criminal records, including both conviction and non-conviction information.
• Drug Testing: The Standards for Workplace Drug and Alcohol Testing Act permits testing of job applicants, but only after a conditional offer of employment has been made. The employer must bear all costs and follow state-mandated procedures. An employer can withdraw an offer from a candidate who tests positive or refuses the test.

How Do Oklahoma's Wage and Hour Laws Work?

Oklahoma’s minimum wage law has specific applicability. The state minimum wage is aligned with the federal rate, but the Oklahoma Minimum Wage Act only applies to employers with at least 10 full-time employees or annual gross earnings over $100,000. It does not apply to employers already subject to the federal Fair Labor Standards Act (FLSA). Several categories of workers, such as farm workers and outside salespersons, are exempt.

State child labor laws are particularly stringent. They restrict the hours and types of work for minors. For example, minors under 16 are generally prohibited from working:

• More than 3 hours on a school day.
• Before 7:00 a.m. or after 7:00 p.m. (extended to 9:00 p.m. during summer).
• In hazardous occupations like manufacturing, mining, or operating motor vehicles.

What Are the Requirements for Pay, Benefits, and Final Wages?

Oklahoma law dictates how and when employees must be paid. Nonexempt employees must be paid at least twice per month, with paydays occurring no more than 11 days after the end of the pay period. Exempt employees may be paid monthly.

A significant state-specific benefit is health care continuation coverage. While the federal COBRA law applies to employers with 20 or more employees, Oklahoma’s law applies to smaller employers (fewer than 20 employees). It allows former employees to purchase continued coverage for up to 63 days of full coverage or 3-6 months of limited coverage, depending on the circumstance.

Upon termination, final wages must be paid by the next regular payday. Oklahoma law defines wages to include accrued vacation pay if it is earned under an established policy or agreement. This is a critical area for employers to manage clearly in their handbooks.

What Are the Key Health, Safety, and Exit Obligations?

Oklahoma mandates a smoke-free workplace policy for all indoor environments, which includes vaping. Employers must post appropriate signage. While employers can generally prohibit weapons in the workplace, state law allows employees to transport and store a legally owned firearm in a locked vehicle in the company parking lot.

To ensure compliance, employers should regularly audit their policies against both state and federal standards, always applying the rule that is most beneficial to the employee. Key areas to review include your anti-discrimination policy, pay frequency practices, and final wage payment procedures. Understanding these distinct state requirements is fundamental to effective human resources management and avoiding legal pitfalls.