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October 23, 2025
Effective November 1, 2025, Oklahoma amended its Minimum Wage Act to modify the manner in which employers can calculate minimum wage for employees who receive tips or gratuities, meals, or lodging. See 2025 Okla. SB 250.
Senate Bill 250 establishes two provisions for wage computation:
First, to compute the minimum wage of any employee subject to Oklahoma’s Minimum Wage Act, credit toward the minimum required wage shall be given for any tips or gratuities, meals, or lodging that the employee received, provided that the employer pays the employee at least the federal minimum cash wage of $2.13 hour. In other words, employers are entitled to take a tip credit of up to $5.12 per hour ($5.12 + $2.13 = $7.25, the federal minimum wage).
Second, to the extent that Oklahoma’s minimum wage exceeds the federal minimum wage in the future, employers may apply a tip credit for tips or gratuities, meals, or lodging.
Oklahoma Employer Takeaways: These amendments provide flexibility in wage calculations while ensuring that employee compensation meets legal standards. Take time now to adjust your wage calculation practices to align with the amendments.
The author of this article, Patricia Tsipras, is a member of the Bar of Pennsylvania. This article is designed to provide one perspective regarding recent legal developments, and is not intended to serve as legal advice in Pennsylvania, Oklahoma, or any other jurisdiction, nor does it establish an attorney-client relationship with any reader of the article where one does not exist. Always consult an attorney with specific legal issues.
