Is my Oklahoma non compete agreement enforceable?

October 8, 2010 — 16 Comments

The short answer is that if you are in Oklahoma the non-compete agreement is not enforceable (Title 15 O.S. section 219.A.).  

With a couple of exceptions, Oklahoma law is clear that a former employee is allowed to work in his or her chosen business or industry even if a piece of paper says otherwise.  While competition is allowed, Oklahoma law prohibits a former employee from soliciting the established customers of the former employer.

An employer who invest its’ resources in training an employee and has disclosed confidential information to the employee still has ways to protect itself.  A strong employment agreement providing protection for confidential information and trade secrets goes a long way to protect an employer’s interest.

To sum it up, a former employee can compete against his former employer. However, he cannot do it using the employer’s confidential information or established clients.

If you have questions about Oklahoma non-compete agreements from either the employee or employer perspective, please feel free to email or call me. I have worked with both employers and employees so I understand the issues from both directions.

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Shawn Roberts

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I am an attorney helping people prevent and solve legal problems, combining my experience and knowledge to provide some practical wisdom.

16 responses to Is my Oklahoma non compete agreement enforceable?

  1. In Oklahoma I was wondering if I the business that the company only has the customer because I brought them in. Such as family and long time friends. Would I be breaking the agreement. This is just a question I have. I am not even sure if I signed a non-compete agreement.

  2. Hi,

    I was wondering if non-compete agreements we enforceable in OK for franchisees?

  3. Great article! I was completely unaware that in Oklahoma non-compete clauses were unlawful.

    If an established client comes to you after you’ve left a company and wants to work with you would that be alright? As long as they made the initial contact in wanting to work with you?

    • Richard,

      Thank you for reading the article and your kind words.

      If you did not do anything to solicit the client and the client truly sought you out for work, then Oklahoma law probably does not prevent the client from working with you.

      Obviously, a written contract might change the outcome here, but generally Oklahoma law does not prevent the client from working with their contractor or business of choice.

      While I can’t give you specific advice on your situation, this is generally how I look at it.

      One more thing: it sounds like you found this article valuable and something you didn’t know. I am sure that there are many other people out there in your situation. Would you share it with your friends in Linkedin, Twitter or other places where you connect with people?

  4. if you are terminated my your company will the non compete hold up

  5. I am a remote employee, living in Oklahoma, employed by a company out of Florida. I recently received a significant raise and received an employee agreement containing a “non-compete” clause that is valid during employment and for a period of 12 months after termination, notwithstanding the reason or cause of termination.

    i understand from your great site here, that Oklahoma is a right to work state and in most cases non-competes are not enforceable. Would the same apply for me since my employer is actually in Florida? I really appreciate your input on this issue…

    • Amy,

      Thank you very much for reading my blog and taking the time to leave a comment. It is very nice to know that people read and are helped by the material that I posted.

      I can’t give you any comment on your specific situation unless you hire me as your attorney and provide me with the documents you have signed to look at.

      However, as a general response to your questions it seems clear to me that Oklahoma law allows noncompete agreements only in a couple of specific situations (selling the goodwill of a business or when a partnership breaks up). Whether Oklahoma law controls in your situation would be an issue raised on the contract you signed, to a small degree the physical location you perform the work and ultimately if the matter goes to court what the courts determine.

      Also, typically (but not always) employers with employees in multiple states try to standardize the law that controls the relationships for all employees (meaning same state’s law for all employees).

      If you would like to discuss the situation further and need more specific advice please feel free to send me an e-mail and we can discuss performing an attorney-client relationship.

      Again, thank you for your comment.

      Shawn

  6. Dear Mr. Roberts,

    Under Oklahoma law, can an employer who attempts to force an employee to sign an unenforceable no-complete (i.e. contradicting the Title 15, Chapter 4, Section 219A) be construed to be forcing an employee to partake in “illegal activity”?

    You’re website refers to D’Sa v. Playhut, Inc. (Cal. Ct. App. December 22, 2000). Where the Court of Appeal in Los Angeles held that forcing the employee to sign an unenforceable anti-competition agreement violates public policy…It makes no difference that the illegal clause would not be enforced…Forcing the employee to sign it was in itself unlawful”.

    Would OK courts agree with this interpretation?

    In a current case, the OESC Appeal Tribunal held that: “It is unreasonable for the employer to force the claimant to sign an agreement that is even partially illegal as a matter of law…Claimant’s job separation was the result of his exercising his right not to be required to partake in illegal activity”.

    Do you know of any OK cases where that view has been upheld? The case has been appealed by the employer. I would appreciate any comments you might make on this matter. Thanks so much. I really like your website and find it very informative.

    • Eugene,

      I appreciate you reading my blog and taking the time to post a comment. To be able to give you a specific answer on this question, I will need a few more facts and for you to hire as your attorney. I need to see the OESC documentation as well as the employment agreement that is at issue.

      Generally, Oklahoma courts will not enforce non-compete clauses except in a few specific circumstances.

      If you would like to hire to review this project and provide you with a written opinion, please let me know.

      Shawn

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