SB385: Are Oklahoma Companies Ready for the Higher Wage Requirements?

Will higher wage demands lead to fewer new jobs?

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What does SB385 want to accomplish?

SB385 changes some of the rules about how much money companies have to pay their workers if they want to join the Oklahoma Quality Jobs Program.

Here's a simple breakdown:

➡️For Applications Before January 1, 2024: Companies still need to pay new workers either 110% or 100% of the average county wage, but there’s a limit on how much they can pay.

➡️For Applications After January 1, 2024: Companies will need to pay new workers at least 100% of the higher amount between the average county wage and the average state wage. There won’t be a limit on how high the pay can go.

➡️Federal Contractors: The same wage changes will apply to federal contractors who are part of this program.

The main goal of the bill is to make sure that new jobs created through this program pay better wages.

Who will benefit from this law?

✔️Workers: New employees who get jobs through the Oklahoma Quality Jobs Program will see higher wages. This means they’ll earn more money, which can help improve their standard of living.

✔️Job Seekers: With higher wage requirements, there might be more job opportunities available in Oklahoma, attracting people looking for well-paying jobs.

✔️Oklahoma Economy: Higher wages can lead to more spending and economic growth in the state, benefiting local businesses and communities.

✔️Companies: While companies will need to pay higher wages, they may attract better talent and improve their overall workforce, which can lead to increased productivity and success.

✔️Federal Contractors: Those working for federal contractors participating in the program will also benefit from the increased wages.

This law aims to ensure that new jobs created in Oklahoma through this program pay better, benefiting both workers and the broader economy.

What are some concerns people might have about this law?

⚠️Higher Costs for Companies: Companies may have to pay more for their workers, which could lead to increased costs for businesses. This might be challenging for smaller companies or startups.

⚠️Limited Job Creation: If the wage requirements are too high, some companies might decide not to participate in the program, which could reduce the number of new jobs created.

⚠️Impact on Federal Contractors: Federal contractors might face similar financial pressures, which could affect their budgets and operations.

⚠️Economic Pressure: Higher wages might lead to inflation or increased prices for goods and services as companies pass on the costs to consumers.

⚠️Potential for Reduced Participation: Some businesses might avoid applying for the program due to the higher wage requirements, which could limit the program's effectiveness in boosting job creation.

These downsides could create challenges for businesses and the overall job market, affecting how the program impacts the state.

This bill is still making its way through the legislative process and has not been signed into law. When introduced, it was set to go into effect at the end of 2023. It remains in committee.

💥Other stories you might be interested in:
SB1856: State Agencies Get Clearer Rules for Handling Job Cuts

HB1290: Can Oklahoma Afford the New Pension Benefit Increases?

➡️Is this something that you think Oklahomans need? How will it benefit the county you live in?

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Hi, I'm Judy! I love talking about the area I live in and what affects us. Follow me if you'd like more stories like this.