Federal & State Regulations | Employment contracts - Oklahoma

State Info

Summary of differences between federal and state regulations

Federal law generally does not regulate employment contracts between employers and employees with one exception: contracts that require the joining or refraining from joining of a labor union as a condition of employment. On the federal level, these contracts are governed by the National Labor Relations Act. States may have a corresponding provision and may also have additional provisions regarding employment contracts.

Oklahoma law has a similar provision to federal law in regard to union membership in its Constitution. The law also has other provisions regarding employment contracts.

Union membership

An employer can not require, by means of an employment contract or otherwise, that an employee become a member or refrain from membership in a labor union as a condition of employment. Nor can an employer deduct from wages for union dues without the employee’s authorization. Okla. Constitution Art. XXIII, Sec. 1A

Payment of accrued leave

Vacation pay, sick pay, severance pay or other similar advantage is considered wages if the payment is agreed upon between the employer and the employee, including in a written employment contract; if payment of cash instead of time off is provided for in a contract, the employee must meet all the conditions of the contract before the employee is entitled to the payment. §380:30-1-5

Bonuses

A provision in a written employment contract or policy manual which requires the employee to be currently employed when a bonus is paid is valid. Employees who are terminated, either voluntarily or involuntarily, prior to the bonus payment date are not entitled to receive the bonus payment. If there is no provision requiring that the employee be employed at the time the bonus is paid and the employer has declared its intent to pay a bonus and the amount of it is known, the employee is entitled to receive the bonus even if involuntarily terminated prior to payment. §380:30-1-6

Stock options

An option to purchase stock in lieu of wages is considered “wages” if provided for in a written employment contract and only if the purchase is required by the employer.

If the option to purchase lies solely with the employee, it is not considered wages. §380:30-1-9