Economy

SQ 832 could raise prices for everyone

February 5, 2026

Curtis Shelton

A new Oklahoma ballot proposal, State Question 832, would significantly increase the state’s minimum wage by tying it to the cost of living in expensive urban areas. The measure is on the ballot on June 16, 2026.

The most common outcome of minimum-wage hikes is fewer opportunities for low-wage workers, but it’s not the only outcome. Research also shows that minimum-wage hikes can raise prices in sectors with a high concentration of minimum-wage workers, such as grocery stores, gas stations, and restaurants.

It makes sense. Labor is one of the largest expenses for restaurants, retail shops, and many service businesses. When the minimum wage increases, owners have only a handful of options. They can raise prices, cut hours, reduce staff, delay expansions, or close locations altogether. Businesses on such thin margins cannot simply “absorb” a double‑digit jump in mandated wages—especially when those increases will go on forever, as is the case with SQ 832.

Research on minimum wages shows that cost increases are indeed passed on to consumers, but in relatively small magnitudes. One study using East Coast restaurant menus finds that a 10 percent minimum-wage hike raises restaurant prices by about 0.3 to 1.1 percent. Another study using Consumer Price Index “food away from home” data estimates that a 10 percent minimum-wage increase raises those prices by roughly 0.36 percent over about nine months, implying modest, gradual price increases rather than dramatic jumps. 

Jurisdictions that have aggressively raised and indexed their minimum wages have seen higher labor costs, pressure on small businesses, and reduced opportunities for young and low‑skill workers trying to get a first job and learn basic workplace skills. A policy that raises prices for everyone while shrinking opportunity for those who need it most should be a clear warning sign for Oklahomans.