An Oklahoma Non-Compete Agreement is not legally recognized by the state. This means that employees of Oklahoma-based businesses can freely work for other companies in the region without any restrictions.
Business owners cannot use non-compete contracts to prevent employees from sharing confidential information. However, if an employee intentionally or maliciously shares such information with a competitor, the business owner may be able to pursue legal action and receive compensation for damages in a court of law.
Reasonable Uses and Objections
- Enforceable when terminated without cause?– No.
- Employee non-solicitation agreement permitted? – Yes.
- Customer non-solicitation agreements permitted? – Yes.
- Does continuing employment equal sufficient consideration? – Not decided.
Legally Enforceable in Oklahoma?
No, a non-compete agreement is not legally allowed in Oklahoma to restrict employees. Business owners cannot write a non-compete agreement in Oklahoma that can restrict current or former employees from working for another business in the region, as per Okla. Stat. tit. 15 § 217. They can, however, be used in the transfer of a company as per 15 § 218 or partnership dissolution per 15 § 219.
Reasonable Use and Exemptions
There are no reasonable use guidelines or exemptions for a non-compete agreement in Oklahoma. Because Oklahoma non-compete agreements are not legally enforceable, businesses cannot ask employees to sign them as a term of employment.
On the other hand, other options may be available for business owners in Oklahoma who want to protect confidential information and prevent it from being shared by current and former employees. It may be prudent to contact a legal professional to determine the other options.
Time Limitations
A non-compete agreement in Oklahoma is not allowed, so any non-compete that restrains a current or former employee of a business from exercising a lawful profession, trade, or business of any kind other than specified in Okla. Stat. tit. 15 § 218-219, or Section 2 of this act, is to that extent void.
If you’re using a non-compete during the transfer of a business or partnership dissolution, the Oklahoma Supreme Court has deemed five years reasonable. [1]
Geographical Limitations
There are no geographical limitations because a non-compete agreement in Oklahoma is not legally enforceable for restricting employees.
For uses of non-competes for the transfer of a business or partnership dissolution, the geographical area should not be overbroad, only covering the counties, cities, and towns the business or partnership serves. Otherwise, the non-compete could be deemed unreasonable.
Sample
Download our Oklahoma non-compete agreement template in Word or PDF format here:
