Labor & Employment

SB 1392 modifies Oklahoma's income tax credit for qualified employees in the aerospace sector. It increases the annual credit from $5,000 (for tax years 2009-2026) to $10,000 (for tax years 2027-2031), allowing a maximum of $10,000 per year for up to five total years. Unused credits can be carried forward to future tax years, but the credit cannot reduce taxes below zero. The bill would take effect November 1, 2026, if passed.

This bill modifies Oklahoma's minimum wage calculation by allowing employers to count up to 50% of tips, meals, or lodging toward meeting the state's minimum wage requirement, provided the base cash wage meets federal standards (29 C.F.R. § 531.50(a)(1)). It directly affects tipped workers (like restaurant staff) and their employers when Oklahoma's minimum wage exceeds the federal rate. The key provision updates how wages are computed, ensuring employers cannot reduce cash wages below federal thresholds while crediting qualifying non-cash compensation. The law takes effect November 1, 2025.

HB 1187 allows Oklahoma state employees to opt out of the state's basic health and dental insurance plans if they have separate group coverage, while retaining life and disability benefits. To opt out, employees must provide proof of their separate coverage and sign an annual affidavit, and they receive $150 instead of the flexible benefit amount they would otherwise receive. The state retains any savings from employees opting out of health coverage. This bill directly affects eligible state employees who qualify for separate group insurance and takes effect November 1, 2025.

SB 521 updates Oklahoma's franchise law by clarifying key definitions in Section 6005 of Title 59. It defines "franchisor" to include subfranchisors who handle both pre-sale and post-sale activities, and specifies that a "franchise" requires trademark use, franchisor control or assistance, and a payment. Crucially, the bill explicitly states that franchisors are not employers of franchisee employees, and franchisee employees are not considered employees of the franchisor. This directly affects franchise businesses and their workers in Oklahoma by clarifying legal employer-employee relationships. The bill takes effect November 1, 2025.