Economy

SQ 832 would hit small businesses hard

March 27, 2026

Curtis Shelton

State Question 832 proposes to raise Oklahoma’s minimum wage to $15 an hour by 2029 while tying annual increases to the cost of living in expensive urban areas such as San Francisco and New York City. These sorts of proposals have been tried in other states with disastrous results for young workers and small businesses. 

Proponents of SQ 832 claim the measure has carve-outs to protect small businesses. The data tell a different story. 

SQ 832 exempts only businesses with fewer than 10 employees and less than $100,000 in gross receipts. That revenue threshold sounds reasonable until you look at what it actually means. According to the Census Bureau's 2022 Annual Business Survey, only about 15% of Oklahoma employer firms gross under $100,000 a year. That means roughly 85% of Oklahoma businesses already exceed the threshold and get no protection whatsoever.

And $100,000 is gross receipts, not profit. A business with just three employees paying each $33,000 a year has already consumed its entire revenue allotment before a single other expense. There's nothing left for rent, supplies, or utilities. Worse, that $100,000 threshold is fixed while labor costs under SQ 832 increase automatically every year tied to the cost of living in expensive urban areas.

States that have passed similar legislation have seen small-business survival rates drop and opportunities for young workers shrink. An NFIB study projected SQ 832 would eliminate over 16,000 Oklahoma jobs, with small businesses being the hardest hit.

The best protection for Oklahoma small businesses is a “no” vote on June 16.