Oklahoma Non Compete Agreement explained
For a term that is used as much as “non compete” I think the details of the agreement and parameters are not well understood. One way I am trying to help in this area is by offering a collection of posts titled “Oklahoma Non Compete Agreements.” You can find an index to the posts below and watch the video above for a brief explanation of the series.
Over past year I have written several articles about non-compete agreements under Oklahoma law. Below is a collection of the links to each article and a snippet of the article. You can access the full articles from here and also bookmark this page to ensure that you can always access all the articles.
Is my Oklahoma non compete agreement enforceable?
The short answer is that if you are in Oklahoma the non compete agreement it is not enforceable. With a couple of exceptions, Oklahoma law is clear that an individual 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.
Two scenarios where a non compete agreement is enforceable
In an article from a few months ago, I wrote about how Oklahoma law categorically invalidates non compete agreements. Oklahoma has made a public policy decision that with a couple of exceptions employees will not be barred from competing. Below are the exceptions to the rule:
Non compete Agreements are still not OK in Oklahoma
I wrote a few months ago about how Oklahoma law prohibits non compete agreements for former employees and touch on exceptions here. Yesterday, the Oklahoma Court of Civil Appeals reiterated that any agreement which restricts a former employee’s ability to work in the same field as the former employer is void under Oklahoma law.
4 critical points to consider in a non disclosure agreement [before you sign it]
1. Is the definition of “confidential information” specific enough to be workable? For the non disclosure agreement to have any value, both sides must understand what is being protected. I routinely see non disclosure agreements that have wonderfully frightening all inclusive definitions of “Confidential Information.”
The ties that bind us: Oklahoma non compete agreements
This is a slide show from a presentation I did last year explaining some of the basics of Oklahoma non-compete agreements and the legal issues to consider when dealing with non-compete agreements.
Oklahoma non-compete law summary
Over past year I have written several articles about non-compete agreements under Oklahoma law. Below is a collection of the links to each article and a snippet of the article. You can access the full articles from here and also bookmark this page to ensure that you can always access all the articles.
Is my Oklahoma non compete agreement enforceable?
The short answer is that if you are in Oklahoma the non compete agreement it is not enforceable. With a couple of exceptions, Oklahoma law is clear that an individual 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.
Two scenarios where a non compete agreement is enforceable
In an article from a few months ago, I wrote about how Oklahoma law categorically invalidates non compete agreements. Oklahoma has made a public policy decision that with a couple of exceptions employees will not be barred from competing. Below are the exceptions to the rule:
Non compete Agreements are still not OK in Oklahoma
I wrote a few months ago about how Oklahoma law prohibits non compete agreements for former employees and touch on exceptions here. Yesterday, the Oklahoma Court of Civil Appeals reiterated that any agreement which restricts a former employee’s ability to work in the same field as the former employer is void under Oklahoma law.
4 critical points to consider in a non disclosure agreement [before you sign it]
1. Is the definition of “confidential information” specific enough to be workable? For the non disclosure agreement to have any value, both sides must understand what is being protected. I routinely see non disclosure agreements that have wonderfully frightening all inclusive definitions of “Confidential Information.”
Non compete Agreements are still not OK in Oklahoma
I wrote a few months ago about how Oklahoma law prohibits non compete agreements for former employees and touch on exceptions here. Yesterday, the Oklahoma Court of Civil Appeals reiterated that any agreement which restricts a former employee’s ability to work in the same field as the former employer is void under Oklahoma law.
The case is Scanline Medical, L.L.C. v. Brooks. The restrictive agreement in question absolutely prohibited the former employee from “sell[ing] any medical device product competitive with any of the Spinal Concepts [or Orthovita] Products, or in any way [possessing] a financial interest . . . in any business engaged in the distribution, solicitation, promotion or sale of any medical device product competitive with any of the Spinal Concepts [or Orthovita] Products.”
By completely preventing the former employee from working in his “chosen profession” the noncompete agreement violated Oklahoma law and the Court would not enforce it. Competition is allowed but an employer can protects it confidential and proprietary information with the right agreements in place.
I work with employers and employees to address non compete agreement issues and put reasonable protections in place to protect both sides. Please feel free to contact me at sjr@shawnjroberts.com if you have any questions.
Two scenarios where a non compete agreement is enforceable
In an article from a few months ago, I wrote about how Oklahoma law categorically invalidates non compete agreements. Oklahoma has made a public policy decision that with a couple of exceptions employees will not be barred from competing. Below are the exceptions to the rule:
1. When you sell goodwill. When a business sells their interest in the business including the goodwill, Oklahoma law allows a non compete agreement between the seller and buyer. While “goodwill” is an intangible assets and often difficult to define, in Oklahoma it generally means the “custom or patronage of any established trade or business; the benefit or advantage of having established a business and secured its patronage by the public.”
2. Business Partners splitting up. A non compete agreement is also allowed when a business with multiple owners or partners dissolves. In anticipation of a dissolution of the partnership, the partners may agree that none of them will carry on a similar business within a specified county and any county or counties contiguous thereto, or a specified city or town or any part thereof.
If you have any questions about non compete agreements, please feel free to contact me anytime at sjr@shawnjroberts.com.
Is my Oklahoma non compete agreement enforceable?
The short answer is that if you are in Oklahoma the non compete agreement it is not enforceable (Title 15 O.S. section 219.A.). With a couple of exceptions, Oklahoma law is clear that an individual 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.
This does not mean there is no protection for an employer who invest its’ resources in training an employee and has disclosed confidential information to the employee. A strong employment agreement providing protection for confidential information and trade secrets goes a long way to protect an employer’s interest.
So, a former employee can compete against his employer, but he cannot do it using the employer’s confidential information or clients.
