Schedule An Initial Consultation 918.770.4335

Blog

Are Non-Compete Agreements Allowed in Oklahoma?

Posted by Jonathan Krems | Oct 10, 2024 | 0 Comments

In today's Freedom Friday blog and email newsletter, I want to talk about something that I get asked about occasionally, but not the way I should be asked about it.  Usually, the prospective client will ask me something along the lines of, “Here's a non-compete agreement I want my employees or independent contractors to sign.  What do you think?”  Unfortunately, that's not the correct approach under Oklahoma law.  So, in today's Freedom Friday blog and email newsletter, I'm answering the right question, which is “Are Non-Compete Agreements Allowed in Oklahoma?”

The short answer as to whether or not non-compete agreements are allowed in Oklahoma, is no, non-compete agreements are not allowed under Oklahoma law.  Section 217 of Title 15 of the Oklahoma statutes expressly prohibit any contract by which any one is restrained from exercising a lawful profession, trade, or business of any kind, with some specific exceptions also found in Oklahoma statutes, is to that extent void.  The two statutory exceptions are when there is a contract for sale of the goodwill of the business (Title 15, Section 218), and in the case of a dissolution of a partnership (or other “business divorce,” for example, dissolution of an LLC) (Title 15, Section 219).  However, non-solicitation agreements are allowed under Oklahoma law (Title 15, Sections 219A and 219B).

So, if you can't have an employee or independent contractor sign a non-compete agreement under Oklahoma law, what are the alternatives?  First, you need to focus on protecting your customer relationships.  Some good practices for your small business can include requiring your employees, especially sales representatives, to communicate with customers on employer-owned devices; make sure that multiple employees have relationships with every customer (this is the team approach); if an employee leaves your company, someone else from your business should immediately reach out to that former employee's customers, and explain the situation and maintain the relationship; maintain a tracking system and records of communications with customers, so if an employee leaves, your business can understand the nature and history of the relationship; and when allowed, require your employees and independent contractors to sign appropriate non-solicitation agreements.

Second, you also should focus on protecting confidential information and trade secrets.  Some good practices in this area for your small business can include defining clearly what information is confidential; training employees and independent contractors on your company's policies regarding confidential information; require employees and independent contractors to sign a confidentiality agreement separate from any non-compete agreement or other agreement; limit access of confidential information to only those employees and independent contractors who need to know it; prohibit the spread of confidential information outside employer systems; require employees to communicate only on employer-owned devices; conduct exit interviews to discuss access to confidential information (when an employee or independent contractor leaves your company, the duty to maintain confidentiality of confidential information remains); and do not encourage employees and independent contractors to communicate with customers via social media such as LinkedIn.

Thinking about starting a small business?  Or maybe your small business is having issues with contracts, leases, business partners, collection issues, or experiencing other barriers to growth?  Please contact me at [email protected] to schedule a FREE strategy session.

For more information about Liberty Legal Solutions, LLC, please visit our website at http://www.libertylegalok.com/

About the Author

Jonathan Krems

Jonathan is the Founder and Managing Attorney of Liberty Legal Solutions, LLC, a law firm dedicated to building, protecting, and defending the business and personal interests of our clients in Oklahoma.  Jonathan's primary practice areas are business law, contracts and agreements, business liti...

Comments

There are no comments for this post. Be the first and Add your Comment below.

Leave a Comment

Contact Us

Liberty Legal Solutions, LLC, is committed to answering your questions about Business Law, Contracts & Agreements, Business Litigation including Breach of Contract Disputes and Commercial Claims, Outside General Counsel services, Local Counsel services, and any of our other practice areas.

We offer a free consultation and we’ll gladly discuss your case with you. Contact us today to schedule an appointment.

Schedule Your Consultation Today

Email: [email protected]

Phone: (918) 770-4335

Menu