Oklahoma stands with California, Minnesota, and North Dakota as one of the states with the strongest protections against non-compete agreements. The state broadly prohibits these agreements, giving workers remarkable freedom to move between employers and start competing businesses.
Oklahoma's Non-Compete Ban
Oklahoma Statute ยง 15-219A prohibits contracts that restrain anyone from exercising a lawful profession, trade, or business. This means non-compete agreements are broadly void and unenforceable in Oklahoma โ regardless of what the contract says, who drafted it, or which state's law the agreement claims to apply.
โ If you live and work in Oklahoma, your non-compete agreement is almost certainly void and unenforceable. You are free to work for competitors, start a competing business, and use your professional skills wherever you choose. Oklahoma courts have consistently applied this prohibition broadly.
The Very Limited Exceptions
Oklahoma's prohibition has only two narrow exceptions โ and they apply to business owners, not typical employees:
- Sale of a business: When someone sells a business, they can agree not to compete with the buyer as part of the sale transaction. The idea is that the buyer paid for the business's goodwill and should be able to protect it.
- Dissolution of a partnership: Partners can agree not to compete with each other upon dissolution of a partnership.
If you are a regular employee โ not a business owner selling your company โ these exceptions do not apply to you.
What About Out-of-State Employers?
Some employers include choice-of-law clauses in their agreements โ stating that another state's law (such as Florida or Texas) governs the contract. Oklahoma courts have generally held that Oklahoma's public policy against non-competes overrides these choice-of-law clauses when the employee lives and works in Oklahoma.
โ ๏ธ Even if your non-compete agreement says it is governed by the law of another state, you should consult an Oklahoma employment attorney before assuming you are fully protected. The interaction between choice-of-law clauses and Oklahoma's ban requires legal analysis in your specific situation.
Non-Solicitation Agreements in Oklahoma
While non-compete agreements are broadly void, Oklahoma employers can still protect legitimate interests through other means:
- Trade secret protections under Oklahoma's Uniform Trade Secrets Act
- Confidentiality agreements protecting genuinely proprietary information
- Oklahoma law does allow employers to restrict former employees from soliciting established customers โ the statute specifically permits this narrow form of restriction
Customer Non-Solicitation โ The One Exception for Employees
Oklahoma's statute provides that while general non-competes are void, employers may restrict former employees from directly soliciting established customers of the former employer. This is a narrower protection than a full non-compete โ it prevents active solicitation of specific existing customers but does not prevent you from working in the same industry or even serving customers who come to you on their own.