A long-overdue raise for low-income workers struggling to make ends meet? Or a burdensome mandate on small businesses that will lead to reduced hours for workers and higher consumer prices?
Since it qualified for the ballot in 2024, there’s been no shortage of discourse regarding State Question 832, an initiative petition that proposes gradually raising Oklahoma’s minimum wage from $7.25 to $15 per hour by the end of the decade. Voters will have the final say when SQ 832 appears on the June 16 primary election ballot.
Proponents argue that raising the minimum wage would help hundreds of thousands of households pay for rising food, housing and healthcare costs. They say the change would benefit Oklahoma’s economy, prompting an increase in consumer spending and more tax revenue for the state and local governments.
“If someone in our state works full-time, they shouldn’t be in poverty,” Shiloh Kantz, executive director of the Oklahoma Policy Institute, said at an April forum sponsored by the League of Women Voters of Oklahoma. “That’s not a strong economy. That’s a broken one.”
Opponents contend that such an increase would hurt business owners, especially small business owners in rural areas, who would be forced to raise prices, cut employee hours and eliminate positions. They are also critical of the ballot initiative’s formula for calculating increases beyond 2029, which is tied to federal consumer price data, arguing that the methodology is overly weighted toward large metropolitan areas.
“The cost of milk in Miami [Florida] is different than Miami [Oklahoma],” said Adam Maxey, vice president of government affairs for the Oklahoma State Chamber, at the April forum. “Those two places are very different culturally and economically.”
Oklahoma Watch compiled the following information through interviews, research and public records:
When was Oklahoma’s last minimum wage increase?
Oklahoma’s minimum wage last increased in July 2009 as part of the federal Fair Minimum Wage Act of 2007. The $7.25 minimum wage in 2009 would be worth approximately $11.12 in 2026, according to the federal government’s Consumer Price Index for all Urban Consumers report.
If SQ 832 passes, when would the minimum wage increase take effect?
The minimum wage would increase on Jan. 1, 2027, in the following increments:
- Jan. 1, 2027: $12 per hour.
- Jan. 1, 2028: $13.50 per hour.
- Jan. 1, 2029: $15 per hour.
SQ 832 initially proposed a $9 per hour minimum wage in 2025 and $10.50 in 2026, which were effectively eliminated when Gov. Kevin Stitt set the election date for June 16, 2026.
Does SQ 832 mandate future increases?
Yes. Increases to Oklahoma’s minimum wage in 2030 and beyond would be tied to the U.S. Department of Labor’s Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W report. The federal government uses the same report to calculate annual cost-of-living increases for Social Security beneficiaries and Supplemental Security Income recipients.
For instance, the October 2025 CPI-W report set a 2.8% cost-of-living increase for 2026. If the same 2.8% cost-of-living increase was reported at the end of 2029, Oklahoma’s minimum wage would automatically increase from $15 to $15.42 per hour in 2030, with no legislative or executive branch approval necessary. At least 21 states use a similar form of automatic indexing to raise their minimum wage.
How is the CPI-W Report Calculated?
The CPI-W report is based on expenditures of households in metropolitan areas where one half or more of the household’s income came from non-salaried wage or clerical work. About 30% of the U.S. population is covered under this group.
Data is collected from several dozen urban areas, including Oklahoma City, to track the cost of common goods and services and how households spend their money. Critics contend that this methodology does not adequately evaluate economic trends in rural areas.
Are some workers exempt from SQ 832?
Yes. The following employees are not covered under SQ 832:
- Federal and state employees
- Reserve sheriff’s deputies
- Outside salesmen
- Workers at companies that gross $100,000 or less per year and have 10 or fewer employees
SQ 832 also eliminates some existing exemptions, including farm and agricultural workers, feedstore employees and positions filled by individuals younger than 18.
How many workers would see their pay increase under SQ 832?
About 216,000 Oklahoma workers, or one-eighth of the state’s workforce, would benefit directly from SQ 832, according to an analysis from the left-leaning Economic Policy Institute. Another 141,700 workers could benefit indirectly through a ripple effect of wages at or just above the minimum wage.
Workers in the restaurant, retail and hotel industries would benefit the most from the policy change, according to the think tank’s analysis.
How much is being raised to advocate for or against SQ 832?
Yes on 832-Raise the Wage Oklahoma, a state question committee formed to advocate for the initiative petition, raised more than $900,000 from Jan. 1 through March 31. Top donors include $400,000 from the Tulsa Community Foundation, a tax-exempt charity founded by billionaire George Kaiser, and $400,000 from Tulsa-based philanthropist Lynn Schusterman.
As of March 31, the last campaign finance reporting deadline, Raise the Wage Oklahoma had $1.1 million on hand. The organization began purchasing television ad time in several Oklahoma media markets in late April, according to records from the Federal Communications Commission.
No political action committee has been formed to oppose SQ 832. However, the Oklahoma City-based 501(c)(4) nonprofit People for Opportunity has spent hundreds of thousands of dollars on television advertisements opposing the ballot initiative.
Per state and federal regulations, People for Opportunity can raise and spend an unlimited amount of money on state question campaigns. They are not required to disclose their donors.
People for Opportunity has strong organizational ties to the Oklahoma Council of Public Affairs, a conservative public policy think tank based in Oklahoma City. OCPA has published dozens of articles critical of SQ 832 in recent months.
How have similar initiatives fared in other states?
Voters in 12 states, including neighboring Arkansas, Missouri and Colorado, have decided minimum wage ballot initiatives since 2016. Only two failed, according to the National Conference of State Legislatures.
What groups support SQ 832, and why?
Backers of SQ 832 include the Oklahoma Policy Institute, Oklahoma Appleseed Center for Law and Justice and the Oklahoma AFL-CIO labor union. Raise the Wage Oklahoma organizers said dozens of small business owners have also pledged support for the ballot initiative.
They argued that raising the minimum wage would spur increased economic activity, reduce employee turnover and help reduce childhood poverty. They also cited a study from the nonpartisan This Land Research and Communications Collaborative predicting a reduction in property crime if SQ 832 is enacted.
What groups oppose SQ 832, and why?
The Oklahoma Council of Public Affairs, State Chamber of Oklahoma, Oklahoma Farm Bureau and Oklahoma Restaurant Association are among the groups opposing SQ 832.
They argue that free-market competition among businesses for employees is the most effective mechanism to increase wages. They say increasing the minimum wage would have unintended consequences, including higher consumer prices and fewer job opportunities for entry-level employees trying to gain work experience. Large corporations would shift to automation while small businesses would be forced to reduce hours or eliminate positions.
Have states that raised their minimum wage seen job reductions and higher prices?
It varies. Unemployment rates in Nebraska and Missouri, where a $15-per-hour minimum wage took effect at the beginning of 2025 and 2026, respectively, have remained flat in recent years. Consumer prices in St. Louis, the largest urban area in the two states, have also remained in line with national averages. Opponents of SQ 832 argue more time is needed to study the long-term economic impact in these states.
Researchers have noted adverse effects of a 2024 California law setting a $20 minimum wage for fast food workers, including consumer price increases and increased workplace automation. A 2024 minimum wage increase to $20 per hour in the Seattle area had some trade-offs, including fewer job openings for entry-level workers.
Proponents of SQ 832 say that Oklahoma’s economy is much different than west coast states like California and Washington, and the staggered approach to raising the minimum wage would give businesses sufficient time to adjust.
If enacted, could the Legislature attempt to modify or roll back SQ 832?
Yes. As an initiated state statute, the Legislature would have the authority to amend parts of SQ 832 without voter approval. That scenario played out in Missouri last year.
Who can vote on SQ 832?
All registered voters in Oklahoma, regardless of political party affiliation, are eligible to vote on SQ 832. The voter registration deadline for the June 16 election is Friday, May 22 at 5 p.m.
To start the voter registration process, confirm your registration status, find your polling place or view sample ballot, visit the OK Voter Portal.
Oklahoma Watch, at oklahomawatch.org, is a nonprofit, nonpartisan news organization that covers public-policy issues facing the state.
