Oklahoma overtime laws are regulated by the federal Fair Labor Standards Act (FLSA). These laws require employers to pay eligible workers at a higher rate for any additional time worked. By incorporating provisions that protect employees’ rights and promote a healthy work-life balance, overtime laws contribute to a more equitable and productive workforce in the state.
This article will provide information to successfully navigate Oklahoma’s overtime regulations, whether you’re an employer aiming for compliance or an employee defending your rights.
Oklahoma Overtime Laws Summary
| State overtime law | Overtime applies for hours worked over 40 in a workweek |
| Overtime pay rate | 1.5x an employee’s regular hourly rate |
| Oklahoma minimum wage | $7.25 per hour |
| Minimum overtime wage | $10.88 per hour |
| Comp time | Allowed |
| Salary threshold for overtime exemption | $684 per week |
This Article Covers
- Oklahoma Overtime Rates
- Overtime Entitlement in Oklahoma
- Overtime for Tipped Employees in Oklahoma
- Overtime for Salaried Employees in Oklahoma
- Overtime for Commissioned Employees in Oklahoma
- Overtime Exceptions and Exemptions in Oklahoma
- Penalties for Unpaid Overtime in Oklahoma
Oklahoma Overtime Rates
In Oklahoma, overtime rates refer to additional compensation that employees may be entitled to receive when they work beyond their regular working hours. Employees who work over 40 hours per week are entitled to overtime pay at time-and-a-half (1.5) for every additional hour worked.
Since the regular minimum wage in Oklahoma is $7.25 per hour, this means Oklahoma’s overtime minimum rate is $10.88 per hour.
Overtime Entitlement in Oklahoma
According to Oklahoma overtime laws, overtime pay is required for any non-exempt employees.
Employees in non-exempt industries who make less than $844 per week ($43,888 annually) are entitled to overtime compensation.
However, an employee’s overall eligibility for overtime pay is based on job duties or business they are involved in.
Read more about Overtime Exceptions and Exemptions in Oklahoma.
Overtime for Tipped Employees in Oklahoma
The overtime rate for tipped employees is 1.5 times their regular wage for every overtime hour worked. It is important to note that tipped employees in Oklahoma are subject to a lower minimum wage of $2.13 per hour instead of the regular state minimum wage.
The use of a “tip credit” system, which permits employers to pay tipped employees a reduced minimum wage, is permitted by both state and federal legislation. However, a tipped worker must accumulate enough tips to total up to the regular minimum wage of $7.25. If their wage, including tips earned, falls below the regular minimum wage, their employer must make up the difference.
That being said, an employer cannot include that tip credit in the calculation of overtime pay. This means that the entire minimum wage (following the Oklahoma minimum wage which is $7.25) must be taken into account when calculating overtime pay.
Overtime for Salaried Employees in Oklahoma
In Oklahoma, only certain salaried employees have the right to receive overtime pay. A salaried employee is an individual who receives a predetermined salary, regardless of the actual hours worked. This means that even if they work more than the hours their salary compensates for, they are still entitled to additional compensation for their extra hours.
To determine a salaried employee’s overtime rate, an employer must first determine their employee’s hourly rate by dividing the salary by the number of hours that salary compensates for.
Then, take the hourly pay rate to calculate the overtime rate for salaried employees using the following formula:
Hourly pay rate x Overtime Hours x Overtime Rate (1.5)
It is important to note that if an employee’s salary covers less than 40 (hours) in a workweek, their regular rate will be added for every subsequent hour working up to the 40. Only after 40 hours will time-and-a-half be counted.
If an employee’s salary covers 40 (hours) in a workweek, then time-and-a-half will be paid for any hours over 40.
Overtime for Commissioned Employees in Oklahoma
In Oklahoma, employees who may receive commissions are still entitled to overtime pay, although the rate may differ.
If an employee receives weekly commissions, the commission will be combined with the employee’s weekly wage to get the total earnings for the week. The amount is then divided by the total number of hours worked in the week to determine the regular hourly rate for that week. For any hours worked beyond 40 per week, the employee must be paid additional compensation at a rate of half of the regular hourly rate.
For example, let’s say an employee works 45 hours a week at a rate of $7.25/hour (Oklahoma minimum wage) and receives $50 in commissions for that week.
(Total hours x Hourly Rate) + Commission
= (45 x 7.25) + 50
= $376.25 (total earnings for the week)
Then, divide that by the total hours worked in the week.
= 376.25 / 45
=$8.36 (new regular hourly rate)
To determine the overtime rate for the commissioned employees, we need to take that new regular hourly rate and halve it.
$8.36 / 2
= $4.18
Since the employee worked an extra 5 hours in the week, that makes his overtime compensation $20.90 ($4.18 x 5 hours).
The amount will vary according to the hours worked, hourly rate, and commission earned.
Overtime Exceptions and Exemptions in Oklahoma
It is crucial to understand that not all employees are eligible to receive overtime pay. To be exempt from overtime, specific criteria outlined by the law must be met. Furthermore, overtime eligibility can be influenced by job responsibilities, industry, or position held. It should be noted that certain employees may fall under exemptions defined by the Fair Labor Standards Act, which exempts them from receiving overtime compensation.
The following are among the exempted:
- Executive, administrative, and professional employees who receive a fixed salary of at least $844 per month (or $43,888 per year)
- Computer employees who earn not less than $844 a week or $27.63 per hour
- Highly compensated employees who earn $107,432 per year or more
- Outside sale employees
- Agricultural or horticultural employees
- Commissioned sales employees in retail or service establishments who receive more than half of their earnings from commissions on goods or services
- Motor carrier employees (e.g. drivers, driver’s helpers, loaders, or mechanics providing services in transportation on highways in interstate or foreign commerce)
Penalties for Unpaid Overtime in Oklahoma
Employers who intentionally or repeatedly disregard the overtime payment regulations set forth by the FLSA may face a civil monetary penalty of up to $1,000 for each violation committed.
In Oklahoma, failure to provide an employee their rightful wages is considered a misdemeanor, which is punishable by a maximum prison sentence of 6 months and fines reaching up to $5,000. Additionally, if there are outstanding wages owed to the employee, a 10% penalty will be imposed.
Important Cautionary Note
This content is provided for informational purposes only. While we make every effort to ensure the accuracy of the information presented, we cannot guarantee that it is free of errors or omissions. Users are advised to independently verify any critical information and should not solely rely on the content provided.
