Oklahoma House Committee Studies Living Wage Impact on State Employers
A state House committee recently held an interim study exploring how living wage laws affect employers, job opportunities, and economic growth across Oklahoma. Lawmakers said the results could influence multiple industries, including the energy sector and public utilities, both central to the state’s economy.
Rep. Mark Tedford, R-Jenks, hosted the study and invited speakers from several business and policy organizations. These presenters highlighted what they described as the need for market-driven solutions to raise wages and expand opportunity — rather than relying on government-imposed mandates.
Legislators Warn of Unintended Consequences
“Living wage laws, while well-intentioned, often create unintended consequences that hurt both employers and workers,” Tedford said. “They can reduce entry-level jobs, limit hiring, or push small businesses to close locations, all of which affects the very people these laws aim to help.”
The representative explained that small businesses form the backbone of Oklahoma’s workforce and local economy. He argued that when they face higher mandated wages, they often respond by cutting staff, limiting new hires, or closing rural locations. Each of those decisions, he said, ultimately removes opportunities from the same workers the laws aim to support.
Experts noted that states with higher mandated minimum wages often experience slower job growth and higher unemployment rates. For example, Missouri saw unemployment climb from 2.8% to 4.3% after its minimum wage increase took effect. Meanwhile, California, which has the nation’s highest minimum wage, also leads the country in unemployment rates.
Business Leaders Share Data on Entry-Level Jobs
James Leewright, CEO of the Oklahoma Restaurant Association, pointed out that less than 2 percent of workers nationwide earn the federal minimum wage. He said most of those positions are entry-level jobs that give young people their first work experience, teaching them reliability, teamwork, and time management.
Leewright added that the path from minimum wage to higher income often comes from gaining experience and advancing within the same company. “Those first jobs are how future managers, owners, and entrepreneurs get their start,” he explained.
Tedford Says Work Builds Skills and Confidence
Rep. Tedford stressed that employment provides more than a paycheck. “Work builds skills, experience, and confidence,” he said. “When people enter the workforce, they begin learning how to show up, solve problems, and contribute to their communities. That’s the foundation of growth for both individuals and employers.”
He cautioned that rigid wage mandates risk eliminating first-step opportunities for young workers, rural residents, and individuals reentering the workforce after incarceration or personal hardship. Those groups, he said, need accessible jobs that offer a chance to learn and advance.
Data Shows Market Forces at Work in Oklahoma
According to data from the Oklahoma Department of Commerce, the state follows the federal minimum wage. However, most skilled workers earn well above a living wage. Tedford said that statistic demonstrates that market forces are working in Oklahoma’s favor.
“That tells us market forces are working,” Tedford said. “When people build skills, their earning potential rises naturally. The data proves that Oklahomans are advancing through ability, not mandates.”
Alternatives to Government Mandates
Throughout the study, participants examined targeted alternatives such as workforce development programs, income tax credits, and skills training initiatives. Supporters said these approaches strengthen both the labor force and the overall state economy without the negative effects of forced wage laws.
“These strategies empower Oklahomans to earn more through skill and effort,” Tedford said. “That’s the right way to build opportunity — not through government mandates that limit it.”
Lawmakers concluded that a balanced approach that rewards hard work and provides upward mobility will create more lasting economic strength for Oklahoma. As the discussion continues, the energy industry, utilities, and small business community will watch closely for any legislative recommendations that emerge from the study.
Source: press release
