Money Monday: How Businesses Can Prepare For A Potential Minimum Wage Increase

Oklahoma recently announced that voters will decide on a minimum wage increase in 2026.

If passed, the state's minimum wage would rise from $7.25 to $12 per hour in the first year, eventually reaching $15 per hour with potential adjustments for inflation. This potential change poses challenges for small business owners.

To get advice on how they can prepare, we spoke with Paul Hood, a business owner with 17 locations.

"I think it's more of a political issue," Hood said. "The reality is, because I own a business, I can't find anybody to work for minimum wage. A lot of places are already paying at or above minimum wage due to supply and demand."

Hood explained that in his opinion businesses are not likely to absorb the higher labor costs out of the "kindness of their heart." Instead, they will likely raise prices or innovate to maintain profitability.

For example, he noted the rise of self-service kiosks at fast-food restaurants. One particularly challenging aspect of the proposed legislation is that the minimum wage would be tied to inflation.

"It's like throwing gasoline on a fire," Hood said. "Prices are already rising, and forcing businesses to pay even higher wages will just drive prices up further."

While the minimum wage increase may help some workers, Hood believes the ultimate outcome will be higher costs passed on to consumers. He advises business owners to plan ahead and consider how they can adapt their operations and pricing to manage the potential changes.

The vote on Oklahoma's minimum wage hike is still several years away, but business owners would be wise to monitor the situation and strategize now. By getting ahead of the curve, they can position their companies to weather any forthcoming changes.