The Pros and Cons of a Minimum Wage Increase for Oklahomans
Voters will decide State Question 832, the minimum wage increase, on June 16. If passed, the state question would boost the state’s minimum wage from $7.25 to $12 in 2027, to $13.50 in 2028, and to $15 in 2029, with further increases tied to the cost of living.
The Oklahoma minimum wage matches the $7.25 per hour federal minimum wage, and is the same as 19 other states, according to Oklahoma Watch. Unchanged since 2009, this is the longest period without a federal minimum wage increase since it was created in 1938 during The Great Depression. Oklahoma politicians, regardless of whether Democrats or Republicans have been in charge, have never raised the minimum wage above the federal rate.
Some contend the proposal is unwise and suggest policymakers instead expand the Earned Income Tax Credit (EITC). While I certainly can agree with this and other tax credits associated with supporting families (child tax credits and childcare tax credits), the Oklahoma Legislature refused to enact an EITC enhancement this year.
Many proclaim minimum wage increases boost prices for consumers, but one could argue consumer prices on gas and food have risen without wage increases. The W.E. Upjohn Institute for Employment Research assessed prices increased roughly 0.36% for every 10% hike in wages, but the margin is widely debated by economists.
The Economic Policy Institute reports that 19 states (not including Oklahoma) increased their minimum wages on January 1, boosting earnings for more than 8.3 million workers by a total of $5 billion. In addition, 47 cities and counties raised their minimum wages, adding to the number of workers likely to get larger paychecks.
According to U.S. Bureau of Labor Statistics, 80.3 million American workers age 16 and older were paid hourly rates in 2024, representing 55.6 percent of all wage and salary workers. Among those paid by the hour, about 82,000 workers earned the $7.25 per hour federal minimum wage, roughly 1% of workers; 760,000 workers earned less than the federal minimum (such as those whose pay is supplemented with tips).
The Brookings Institution reported 53 million Americans ages 18 to 64 – 44% of all workers – earn a median hourly wage of $10.22, and for those working full time year-round, that is equal to annual earnings of $21,258. Data from 2022 shows that 89% of workers earning a sub-$15 wage are age 20 or older. Nationally, more than half of working single parents, an estimated 11.2 million, also fall into this category.
In Oklahoma, approximately 200,000 workers earn at or near $7.25, which is about 5% of the population. While these make the legal minimum, a much larger unspecified percent of the population earns above $7.25 but below $10–$15 per hour, contributing to Oklahoma having the nation’s eighth highest poverty rate.
This contributes to Oklahoma ranking among the worst states for utility shutoffs. Despite Oklahoma’s modest population, it had the third highest number of electricity disconnections in the country – not by percentage of the population, the raw number of cutoffs – according to the U.S. Energy Information Administration. We are the 28th most populous state and had more utility cutoffs than the largest state, California.
Those of us working to improve child wellbeing are watching this issue because parents’ low wages have a negative impact on children, making nutritious food, safe housing, childcare and necessary transportation harder to access. The Economic Policy Institute reports 200,000 Oklahoma children have parents who would get raises should the state question pass, taking many off state-subsidized programs, therefore reducing reliance on government aid. A minimum wage of $10 or greater also improves birth outcomes and children’s health and development, reduces child maltreatment, and has minimal negative impacts on employment.
I encourage you to study all factors – the impact on families, the impact on businesses, the impact on the economy – before casting your vote to determine whether a minimum wage increase is the best policy for you and for our state. This is a decision which could have a major impact on many in our state, so do not just trust the commercials.










