In Oklahoma, non-compete agreements are not allowed to be used by business owners. Current or former employees of businesses in Oklahoma cannot be restricted from working for another company in the region.
Is a Non-Compete Legally Enforceable in Oklahoma?
No, a non-compete agreement is not legally allowed in Oklahoma to restrict employees. Business owners are not allowed to write a non-compete agreement in Oklahoma that can restrict current or former employees from working for another business in the region. [1] They can, however, be used in the transfer of a business [2] or partnership dissolution [3] .
What’s Protected?
Given that business owners in Oklahoma are not allowed to write a non-compete agreement, they are not able to use non-compete agreements in Oklahoma to stop someone from sharing certain information. On the other hand, if a business owner can prove that an employee may have shared information with a competitor intentionally or maliciously, they may be able to pursue damages in a court of law.
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, there may be other options 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 reach out to a legal professional to figure out what those other options might be.
- 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
Non-Compete Agreement Oklahoma Limitations
Because non-compete agreements in Oklahoma are not legally enforceable when it comes to restricting employees, there are a lot of limitations that employers might run into.
Limitations on time
A non-compete agreement in Oklahoma is not allowed, so any non-compete which restrains a current or former employee of a business from exercising a lawful profession, trade, or business of any kind, other than specified in Sections 218 and 219 of Okla. Stat. tit. 15 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, five years has been deemed reasonable by the Oklahoma Supreme Court. [4]
Non-compete agreement Oklahoma geographical limitations
Because a non-compete agreement in Oklahoma is not legally enforceable for restricting employees, there are no geographical limitations. 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.
Oklahoma Non-Compete Agreement Sample
If you are writing a non-compete agreement in Oklahoma for the transfer of a business or partnership dissolution, take a closer look at this Oklahoma non-compete agreement template, which you can download in Word or PDF format here:
Non-Compete Agreement
