By Devyn Lyon, Fox23 News
TULSA, Okla. — Oklahoma voters will decide later this month whether to gradually raise the state’s minimum wage from $7.25 an hour to $15 an hour through State Question 832.
The measure will appear on ballots during the June 16 primary election and would mark the first increase to Oklahoma’s minimum wage in more than 15 years if approved by voters.
Under the proposal, the state’s minimum wage would increase gradually over three years:
- $12 per hour in 2027
- $13.50 per hour in 2028
- $15 per hour in 2029
If voters reject the measure, Oklahoma’s minimum wage would remain at $7.25 an hour.
The proposal comes as economists and financial experts continue debating what impacts a higher minimum wage could have on workers, businesses and the broader economy.
“We’re in a very important crossroads in the state of Oklahoma,” said University of Tulsa economics professor Scott Carter.
Former White House economic policy advisor Michael Negron said inflation has reduced the purchasing power of minimum wage earners over time.
“We’re in this situation where the federal minimum wage simply isn’t sufficient to afford the things that people need,” Negron said. “If it had merely kept up with inflation, that $7.25 would be about $11 now in Oklahoma.”
According to financial advisor Vince Gregory with Castle Rock Advisors, roughly 360,000 Oklahoma workers could potentially be affected by the increase.
“That’s about one in five Oklahomans who could feel the increase in income,” Gregory said.
Oklahoma remains one of several states that still use the federal minimum wage of $7.25 an hour.
Neighboring Arkansas and Missouri currently have minimum wages above $11 an hour, while Texas and Kansas remain at $7.25.
Experts interviewed by our news partners at FOX23 agreed that predicting the long-term effects of a minimum wage increase is difficult.
Gregory said economists continue to debate what secondary effects could occur if wages rise.
“We don’t really know what kind of effect it’s going to have because it’s going to have secondary and third-order effects,” Gregory said.
Some opponents of minimum wage increases have expressed concerns that businesses could respond by reducing employee hours, increasing prices or struggling to absorb higher labor costs.
Gregory noted some states that have previously increased minimum wages have seen reductions in worker hours.
Meanwhile, supporters argue higher wages can improve worker retention and productivity.
“Their productivity has gone up. Job turnover goes down,” Negron said. “That’s important for businesses because lower-wage workers are likelier to leave their jobs.”
Carter pointed to economic research that he said found little evidence that wage increases automatically lead to significant increases in consumer prices.
“There was no evidence of wage increases being broadly passed through in terms of goods prices,” Carter said, citing findings from economic research.
While economists continue to study minimum wage increases across the country, experts say each state can experience different results based on its workforce, industries and economic conditions.
“It’s a great opportunity for us as a state to take the time to do some research and education,” Gregory said.
The debate over State Question 832 is expected to continue in the days leading up to the June 16 election as voters weigh potential benefits and concerns surrounding the proposal.
