A combination of better pay for workers, vocational training and education is needed to fully resolve the problem, he said.
Governor Fallin signed the bill in opposition to President Obama's plan to increase the national minimum wage from $7.25 per hour to $10.10 per hour, according to a press release.
Fallin said a minimum wage hike would stifle job creation and result in increased costs passed on to consumers.
"President Obama and his Oklahoma surrogates say they want to raise the minimum wage to reduce poverty," Fallin said. "They are ignoring the fact that most minimum wage workers are young, single people working part time or entry-level jobs…mandating an increase in the minimum wage would require businesses to fire many of these part-time workers."
Before the bill was approved, people in Oklahoma City were collecting signatures to put the issue of raising the minimum wage to $10.10 per hour and 60 percent of minimum wage for tipped workers to a vote.
Central Oklahoma Labor Federation President Tim O'Connor said they've been collecting signatures since March.
"The state just took [the power to raise their minimum wage] out of the hands of cities," O'Connor said."We were on our way to [reaching] that goal when they shut us down."
The bill became effective upon the governor's signature.