Hiring New Employees in Oklahoma: Legal Guidelines for Employers

Hiring new employees in Oklahoma requires compliance with both federal and state-specific employment laws. Oklahoma employers must navigate proper classification, complete required documentation, adhere to state wage laws, and understand at-will employment provisions specific to the state.

Failure to comply with Oklahoma's employment laws can result in significant penalties, including fines and potential lawsuits. Ensuring proper onboarding procedures from the start helps protect both your business and your new employees.

Key Considerations

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Relevant Laws

Oklahoma Employment Security Act

Employers in Oklahoma must register with the Oklahoma Employment Security Commission within 10 days of hiring their first employee. This law governs unemployment insurance and requires employers to pay unemployment taxes.

Oklahoma Workers' Compensation Act

Employers with one or more employees must carry workers' compensation insurance in Oklahoma. This protects both employers and employees in case of work-related injuries or illnesses.

Oklahoma Standards for Workplace Drug and Alcohol Testing Act

This law outlines the legal procedures for implementing drug and alcohol testing in the workplace. Employers must have a written policy and follow specific protocols if they choose to conduct testing.

Oklahoma Anti-Discrimination Act

Prohibits employment discrimination based on race, color, religion, sex, national origin, age, disability, or genetic information. Applies to employers with 15 or more employees.

Federal Fair Labor Standards Act (FLSA)

Sets minimum wage, overtime pay, recordkeeping, and youth employment standards that apply in Oklahoma. Currently, Oklahoma follows the federal minimum wage of $7.25 per hour.

Federal Immigration Reform and Control Act

Requires employers to verify the identity and employment eligibility of all employees by completing Form I-9 within three business days of the date of hire.

Oklahoma New Hire Reporting Requirements

Employers must report newly hired and rehired employees to the Oklahoma Employment Security Commission within 20 days of their hire date to help with child support enforcement.

Regional Variances

Major Cities in Oklahoma

As the capital and largest city, Oklahoma City has additional local ordinances affecting employment. Employers must comply with the Oklahoma City Municipal Code which includes specific business licensing requirements. The city also has its own occupational safety regulations that may exceed state standards in certain industries.

Tulsa has enacted certain local ordinances that provide additional protections for employees. The Tulsa Human Rights Commission enforces anti-discrimination provisions that may be broader than state law. Employers in Tulsa should also be aware of specific zoning requirements that may affect home-based businesses and employee work locations.

Tribal Jurisdictions

Businesses operating within Cherokee Nation tribal lands may be subject to tribal employment laws in addition to state and federal regulations. The Cherokee Nation has its own employment rights office and TERO (Tribal Employment Rights Office) that enforces Indian preference in employment and contracting. Employers may need to register with the TERO and comply with specific tribal regulations.

Employers operating within Muscogee (Creek) Nation jurisdiction must comply with tribal employment laws which may include specific hiring preferences for tribal members. The tribe's employment office oversees compliance with tribal employment regulations and may require separate business licensing for operations within tribal territory.

The Chickasaw Nation maintains its own employment laws and regulations for businesses operating within its jurisdictional boundaries. Employers may be required to obtain tribal business licenses and comply with the Chickasaw Nation's employment preference policies. The tribe also has specific tax regulations that may affect payroll and employment practices.

Special Economic Zones

Businesses hiring employees in designated Opportunity Zones throughout Oklahoma may qualify for special tax incentives and workforce development programs. These zones offer additional benefits for employers, but may also come with specific reporting requirements regarding job creation and employee retention.

Oklahoma's Enterprise Zones provide tax incentives for businesses that hire and invest in economically distressed areas. Employers in these zones may qualify for additional tax credits and incentives when hiring local residents, but must maintain specific documentation to verify employee eligibility.

Suggested Compliance Checklist

Create and review job description

1 days after starting

Develop a clear job description that outlines the position's responsibilities, required qualifications, and essential functions. Ensure the description complies with Oklahoma employment laws and does not contain discriminatory language. This will help attract qualified candidates and serve as documentation for the position requirements.

Post job opening and recruit candidates

7 days after starting

Advertise the position through appropriate channels such as job boards, company website, social media, or recruitment agencies. Ensure job postings comply with anti-discrimination laws and focus on job-related qualifications.

Prepare Employment Application Form

7 days after starting

Create or update your employment application form to collect necessary information from candidates. In Oklahoma, ensure the application complies with state laws regarding what information can be requested. Avoid questions about age, race, religion, national origin, disability, or other protected characteristics unless they are bona fide occupational qualifications.

Document: Employment Application Form

Screen applications and conduct interviews

21 days after starting

Review applications, conduct phone screenings, and schedule in-person interviews. Prepare interview questions that focus on job-related qualifications and avoid discriminatory inquiries. Document the selection process to demonstrate fair hiring practices.

Prepare Background Check Authorization Form

21 days after starting

Create a form that complies with the Fair Credit Reporting Act (FCRA) and Oklahoma law to obtain the candidate's consent for background checks. In Oklahoma, employers must obtain written consent before conducting background checks, and the form should clearly disclose that the information may be used for employment decisions.

Document: Background Check Authorization Form

Conduct background checks

28 days after starting

After receiving signed authorization, conduct appropriate background checks in compliance with Oklahoma law. This may include criminal history, employment verification, education verification, and reference checks. Be aware that Oklahoma follows federal guidelines regarding the use of criminal history in hiring decisions.

Prepare Employment Offer Letter

30 days after starting

Draft an offer letter that outlines the position, salary, benefits, start date, and employment relationship (at-will employment is standard in Oklahoma). The letter should clearly state that the offer is contingent upon successful completion of background checks and any other pre-employment requirements.

Document: Employment Offer Letter

Prepare Employment Contract (if applicable)

30 days after starting

If using an employment contract rather than at-will employment, draft a contract that clearly outlines terms of employment, compensation, benefits, duration, termination conditions, and any restrictive covenants. Oklahoma generally enforces reasonable employment contracts, but ensure any restrictive covenants are narrowly tailored to protect legitimate business interests.

Document: Employment Contract

Prepare Non-Disclosure Agreement

30 days after starting

Draft a non-disclosure agreement to protect confidential company information. In Oklahoma, NDAs are generally enforceable if they are reasonable in scope and duration and protect legitimate business interests. The agreement should clearly define what information is considered confidential and the employee's obligations regarding such information.

Document: Non-Disclosure Agreement

Prepare Non-Compete Agreement (if applicable)

30 days after starting

If necessary for your business, draft a non-compete agreement. In Oklahoma, non-compete agreements are enforceable if they are reasonable in geographic scope, time duration, and type of employment or line of business. They must protect legitimate business interests and not impose undue hardship on the employee or public. Consider whether a non-solicitation provision might be sufficient instead.

Document: Non-Compete Agreement

Prepare or update Employee Handbook

30 days after starting

Ensure your employee handbook is current with Oklahoma employment laws. Include policies on at-will employment, equal employment opportunity, anti-harassment, workplace safety, paid leave, attendance, performance evaluations, discipline, and termination procedures. Oklahoma-specific policies should address the state's workers' compensation laws and unemployment insurance.

Document: Employee Handbook

Register with Oklahoma Employment Security Commission (OESC)

35 days after starting

If not already registered, register with the OESC for unemployment insurance tax purposes. All employers in Oklahoma who pay $1,500 or more in wages in a calendar quarter or have one or more employees for any portion of a day in each of 20 different weeks must register.

Register with Oklahoma Tax Commission

35 days after starting

Register with the Oklahoma Tax Commission to withhold state income tax from employee wages. Employers must register if they have employees working in Oklahoma from whom they withhold state income tax.

Obtain workers' compensation insurance

35 days after starting

Oklahoma law requires most employers to carry workers' compensation insurance. Verify coverage with your insurance provider or, if self-insured, ensure compliance with Oklahoma Workers' Compensation Commission requirements.

Prepare Form I-9 Employment Eligibility Verification

40 days after starting

Have the federal Form I-9 ready for the employee's first day. Federal law requires all employers to verify the identity and employment authorization of each person hired to work in the United States. The form must be completed within 3 business days of the employee's first day of employment.

Document: Form I-9 Employment Eligibility Verification

Prepare Form W-4 Employee's Withholding Certificate

40 days after starting

Have the federal Form W-4 ready for the employee to complete on their first day. This form determines the amount of federal income tax to withhold from the employee's pay.

Document: Form W-4 Employee's Withholding Certificate

Prepare Oklahoma State Tax Withholding Form

40 days after starting

Have the Oklahoma Form OK-W-4 ready for the employee to complete. This form determines the amount of Oklahoma state income tax to withhold from the employee's pay.

Document: State Tax Withholding Form

Prepare Direct Deposit Authorization Form

40 days after starting

Create a form for employees to authorize direct deposit of their paychecks. While not required by Oklahoma law, this is a common practice that benefits both employers and employees. The form should include fields for the employee's bank information and authorization signature.

Document: Direct Deposit Authorization Form

Prepare Benefits Enrollment Forms

40 days after starting

Prepare forms for the employee to enroll in company benefits such as health insurance, retirement plans, and other optional benefits. Include clear information about eligibility requirements, coverage options, costs, and enrollment deadlines.

Document: Benefits Enrollment Forms

Prepare Emergency Contact Information Form

40 days after starting

Create a form to collect emergency contact information from the new employee. This information is essential for workplace safety and emergency response.

Document: Emergency Contact Information Form

Complete new hire onboarding

45 days after starting

On the employee's first day, ensure all required forms are completed, including I-9, W-4, OK-W-4, direct deposit authorization, benefits enrollment, and emergency contact information. Provide the employee with the employee handbook and review key policies. Collect signed acknowledgments for receipt of the handbook and any agreements (NDA, non-compete, etc.).

File New Hire Reporting Form

50 days after starting

Complete and submit the Oklahoma New Hire Reporting Form to the Oklahoma Employment Security Commission within 20 days of hiring. Oklahoma employers are required to report all newly hired or rehired employees to help with child support enforcement.

Document: New Hire Reporting Form

Set up payroll for the new employee

50 days after starting

Add the new employee to your payroll system, ensuring proper tax withholding based on their W-4 and OK-W-4 forms. Oklahoma requires employers to pay employees at least twice per month on regular paydays designated in advance.

Display required workplace posters

50 days after starting

Ensure all required federal and Oklahoma-specific workplace posters are displayed in a conspicuous location. These include posters related to minimum wage, workplace safety, equal employment opportunity, family and medical leave, and unemployment insurance.

Implement recordkeeping procedures

55 days after starting

Establish a system for maintaining required employment records. Oklahoma follows federal requirements for recordkeeping, including maintaining personnel files, payroll records, I-9 forms, and tax documents. Most employment records should be kept for at least 3 years.

Schedule new employee training

60 days after starting

Arrange for the new employee to receive necessary training, including job-specific training, safety training, and training on company policies and procedures. Document all training provided to demonstrate compliance with applicable laws and regulations.

Frequently Asked Questions

In Oklahoma, employers must verify employment eligibility using Form I-9, register with the Oklahoma Tax Commission for withholding taxes, register with the Oklahoma Employment Security Commission for unemployment insurance, obtain workers' compensation insurance (if you have more than 5 employees), report new hires to the Oklahoma Employment Security Commission within 20 days, and display required state and federal labor law posters. You'll also need to establish payroll systems that comply with federal and state wage laws.

Yes, Oklahoma is an at-will employment state. This means that, absent a contract specifying otherwise, either the employer or employee can terminate the employment relationship at any time, with or without cause. However, employers still cannot terminate employees for illegal reasons such as discrimination based on protected characteristics or retaliation for exercising legal rights.

Oklahoma's state minimum wage is $7.25 per hour, which matches the federal minimum wage. Employers subject to both state and federal minimum wage laws must pay the higher of the two, which currently means $7.25 per hour. Some employees may be exempt from minimum wage requirements based on their job duties and salary level.

Oklahoma law does not require written employment contracts for most positions. However, having clear written agreements or offer letters that outline job duties, compensation, benefits, and employment policies is recommended to prevent misunderstandings. For certain positions or if you want to establish specific terms like non-compete agreements, written contracts may be advisable.

For Oklahoma employees, you must withhold federal income tax, Social Security and Medicare taxes (FICA), and Oklahoma state income tax. You'll need to register with the Oklahoma Tax Commission to obtain a withholding account number. As an employer, you're also responsible for paying federal and state unemployment taxes and matching the employee's FICA contributions.

Oklahoma state law does not mandate specific break or meal periods for adult employees. However, if you do provide breaks, federal law requires that short breaks (usually 20 minutes or less) be paid. Meal periods (typically 30 minutes or more) can be unpaid if employees are completely relieved of their duties. For minors under 16, child labor laws may impose additional break requirements.

Oklahoma follows the federal Fair Labor Standards Act (FLSA) for overtime regulations. Non-exempt employees must receive overtime pay at a rate of at least 1.5 times their regular rate for hours worked beyond 40 in a workweek. Certain employees may be exempt from overtime requirements based on their job duties and salary level. It's important to properly classify employees as exempt or non-exempt.

Oklahoma state law does not require employers to provide health insurance. However, under federal law, if you have 50 or more full-time equivalent employees, the Affordable Care Act (ACA) requires you to offer affordable health insurance that provides minimum value or potentially face penalties. Smaller employers may be eligible for tax credits if they choose to offer health insurance.

In Oklahoma, employers with more than five employees must carry workers' compensation insurance. Exceptions exist for certain agricultural or horticultural employers. Oklahoma allows employers to obtain coverage through private insurance carriers, CompSource Oklahoma, or self-insurance (if qualified). Failing to carry required workers' compensation insurance can result in significant penalties.

Yes, Oklahoma law permits employers to conduct pre-employment drug testing. Oklahoma's Standards for Workplace Drug and Alcohol Testing Act allows testing if you have a written policy that complies with state requirements. The policy must be provided to applicants, and you must follow specific procedures for testing and handling positive results. Many employers qualify for workers' compensation premium discounts by implementing compliant drug-free workplace programs.

Hiring New Employees in Oklahoma: Legal Guidelines for Employers | DocDraft