Oklahoma ensures fair compensation for employees who work extra hours. Knowing these laws helps you protect your rights and take action if your employer owes you overtime pay.
In Oklahoma, overtime rates apply to employees who work beyond their regular hours. Exceeding 40 hours per week entitles employees to overtime pay at one and a half times (1.5x) their regular hourly rate.
With Oklahoma’s regular minimum wage at $7.25 per hour, the minimum overtime rate is $10.88 per hour.
Overtime Entitlement
Oklahoma overtime laws mandate overtime pay for all non-exempt employees.
Furthermore, workers in non-exempt industries earning less than $684 per week ($35,568 annually) qualify for overtime compensation.
Therefore, eligibility for overtime pay also depends on the specific job duties and the type of business involved.
Rate and Calculation
In Oklahoma, the overtime pay rate is one and a half times (1.5x) your regular hourly rate. You qualify for overtime pay for hours worked beyond 40 in a week.
Example Calculation: If your regular hourly rate is $15 and you work 50 hours in a week, calculate as follows:
Regular pay for 40 hours: 40 x $15 = $600
Overtime pay for 10 hours: 10 x ($15 x 1.5) = 10 x $22.50 = $225
Total pay for the week: $600 + $225 = $825
Tipped Employees Considerations
Tipped employees in Oklahoma receive overtime pay at 1.5 times their regular hourly wage for each overtime hour worked. In addition, unlike other employees, tipped workers in Oklahoma have a lower minimum wage of $2.13 per hour.
State and federal laws allow the use of a “tip credit” system, enabling employers to pay tipped employees the reduced minimum wage. However, employees must earn enough tips to reach the standard minimum wage of $7.25 per hour. If their combined wage and tips fall short, the employer must cover the difference.
Moreover, employers cannot include the tip credit when calculating overtime pay. Therefore, overtime pay calculations must use the full minimum wage of $7.25 per hour.
Salaried Employees
In Oklahoma, some salaried employees are eligible for overtime pay. Not to mention, a salaried employee receives a fixed salary regardless of the actual hours worked. As a salaried employee, you receive additional compensation for hours worked beyond your compensated hours.
To calculate a salaried employee’s overtime rate, the employer must first determine the employee’s hourly rate by dividing the salary by the number of hours the salary covers.
Next, use the hourly pay rate to calculate the overtime rate with the following formula:
Hourly pay rate x Overtime Hours x Overtime Rate (1.5)
It’s important to note:
If the salary covers less than 40 hours in a workweek, the regular rate applies for hours up to 40. Only after 40 hours will overtime be paid at time-and-a-half.
If the salary covers 40 hours in a workweek, overtime pay at time-and-a-half will apply for any hours worked over 40.
Calculating Overtime with Commission
In Oklahoma, employees who receive commissions receive overtime pay, but the calculation method differs.
Add the weekly commission amount to the employee’s weekly wage to determine total earnings for the week.
Divide this total by the number of hours worked that week to find the regular hourly rate.
Pay the employee additional compensation at one and a half times the regular hourly rate for hours worked beyond 40 per week.
Example Calculation:
Suppose an employee works 45 hours a week at a rate of $7.25 per hour (Oklahoma minimum wage) and earns $50 in commissions for that week.
Calculate total earnings for the week: (45×7.25)+50=376.25(45 \times 7.25) + 50 = 376.25(45×7.25)+50=376.25
Divide total earnings by total hours worked: 376.25÷45=8.36376.25 \div 45 = 8.36376.25÷45=8.36 The regular hourly rate is $8.36.
Determine the overtime rate (half of the regular hourly rate): 8.36÷2=4.188.36 \div 2 = 4.188.36÷2=4.18
Calculate overtime compensation for 5 extra hours worked: 4.18×5=20.904.18 \times 5 = 20.904.18×5=20.90
The overtime compensation for the extra 5 hours worked is $20.90. The total will vary based on the hours worked, the hourly rate, and the commissions earned.
Who Is Entitled to Overtime Pay?
Most employees in Oklahoma are entitled to overtime pay. Factors that determine eligibility for overtime pay:
Hourly Employees: All hourly employees qualify for overtime pay for hours worked over 40 hours a week.
Non-Exempt Salaried Employees: In general, salaried employees may be eligible if they do not meet exemption criteria. Such as earning below a certain salary threshold and performing non-exempt job duties.
Exemptions and Exceptions
In Oklahoma, some employees are classified as exempt from overtime pay under federal and state labor laws. The Fair Labor Standards Act (FLSA) entitles non-exempt employees to overtime compensation, while exempt employees do not receive this benefit.
General Criteria for Exemption
Salary Threshold: Earn a monthly salary of at least twice the Oklahoma minimum wage for full-time employment.
Nature of Work: The job involves duties in creative, intellectual, or managerial fields.
Discretion and Judgment: The role requires the use of discretion and independent judgment.
Specific Exempt Professions
Commissioned Employees: Earn most of their income from commissions.
Administrative Employees: Involved in administrative tasks related to management policies or general business operations.
Executives: Manage at least two other employees and have authority over hiring and firing decisions.
Computer Professionals: Work in programming, systems analysis, or software engineering.
Teachers: Educators in private schools.
Outside Salespeople: Regularly work away from the employer’s business selling products or services.
Union employees do not qualify for standard overtime provisions. Their unions negotiate different overtime rates.
Important Considerations
Employers must classify employees correctly as exempt or non-exempt. If in doubt, the default classification becomes non-exempt to ensure compliance with overtime laws.
Steps to Take if You Believe You Are Owed Back Overtime Pay
If you believe you are owed back overtime pay, act promptly. Here are the steps you should take:
Maintain detailed records of your work hours. Also, keep any communications with your employer regarding overtime as proof.
Ensure your job classification (exempt vs. non-exempt) is correct.
Discuss your concerns with your employer or HR department.
If your employer does not address the issue, file a complaint with the Oklahoma Department of Labor.
For legal advice, consult an employment attorney specializing in wage and hour laws.
Penalties for Not Providing Overtime Pay
Employers in Oklahoma who willfully or repeatedly ignore the overtime payment rules established by the Fair Labor Standards Act (FLSA) can face civil penalties of up to $1,000 for each violation.
Failure to pay an employee their due wage could result in a misdemeanor charge. This offense can result in up to 6 months of imprisonment and fines of up to $5,000. Moreover, if wages are owed to an employee, the employer will also face a 10% penalty on the outstanding amount.
Think You Have a Case? Contact Lemberg Law for Assistance
If you believe your employer has violated overtime laws and owes you back pay, contact Lemberg Law for assistance. Our experienced legal team will evaluate your case for free. Call us at 475-277-2200 or complete our online form to get started.
About the Author:
Sergei Lemberg is an attorney focusing on consumer law, class actions related to automotive issues, and personal injury litigation. With nearly two decades of experience, his areas of practice include Lemon Law (vehicle defects), Debt Collection Harassment, TCPA (illegal robocalls and texts), Fair Credit Reporting Act, Overtime claims, Personal Injury cases, and Class Actions. He has consistently been recognized as the nation's "most active consumer attorney." In 2020, Mr. Lemberg represented Noah Duguid before the United States Supreme Court in the landmark case Duguid v. Facebook. He is also the author of "Defanging Debt Collectors," a guide that empowers consumers to fight back against debt collectors and prevail, as well as "Lemon Law 101: The Laws That Lemon Dealers Don't Want You to Know."
I left a manager postion and along with my hourly rate of pay I receive 1% bonus of sales per month. The employer refuses to pay me my final bonus check. What do I do? Thank You
Anonymous
How is it possible that dock workers in the transportation industry do not earn overtime pay. I have been doing this type of work for 23 years, and have never received a dime of overtime pay, despite working a significant amount of time over full time hours.
I left a manager postion and along with my hourly rate of pay I receive 1% bonus of sales per month. The employer refuses to pay me my final bonus check. What do I do? Thank You
How is it possible that dock workers in the transportation industry do not earn overtime pay. I have been doing this type of work for 23 years, and have never received a dime of overtime pay, despite working a significant amount of time over full time hours.