Non-Compete Agreements in Oklahoma

Your employer hands you a stack of paperwork on your first day and asks you to sign everything. Buried in there is a non-compete agreement saying you can't work for a competitor for two years after leaving. Do you have to sign? And if you do, can they actually enforce it?

In Oklahoma, the answers are: yes, you can sign it—and no, they probably can't enforce it.

Oklahoma's Non-Compete Law

Oklahoma has one of the strongest statutory protections for employees facing non-compete agreements. Title 15, Section 219A of the Oklahoma Statutes provides:

"A person who makes an agreement with an employer... not to compete with the employer after the employment relationship has been terminated, shall be permitted to engage in the same business as that conducted by the former employer..."

In plain English: Oklahoma law specifically allows you to work in your field after leaving a job, even if you signed an agreement saying otherwise.

This makes Oklahoma one of the most employee-friendly states in the country when it comes to non-competes. While many states enforce "reasonable" non-competes, Oklahoma has chosen a different path — one that prioritizes worker mobility and economic freedom over employer control. If you're an employer trying to protect your business interests, you need a different approach than non-competes.

Why Oklahoma Is Different

The policy behind Oklahoma's law is economic freedom. The legislature decided that employees should be able to use their skills and experience without arbitrary restrictions. Preventing workers from plying their trade harms workers, limits competition, and restricts economic mobility.

California is the only other major state with a comparable blanket prohibition on non-competes. Most states fall somewhere in between—enforcing non-competes that are "reasonable" in scope, duration, and geographic area. Courts in those states engage in a balancing test, weighing the employer's legitimate business interests against the burden on the employee and the public interest. Oklahoma skips this analysis entirely—the legislature decided employee mobility wins, period.

The Exceptions: When Non-Competes May Apply

Oklahoma's prohibition isn't absolute. Three categories of non-competes can be enforceable:

Sale of Business (15 O.S. § 218)

When you sell a business, you can agree not to compete with the buyer. This makes sense—the buyer is paying for the goodwill of the business, and the seller shouldn't be able to immediately undermine that by opening a competing shop next door.

These non-competes must be limited to the geographic area where the business operated or had substantial customer relationships. The duration must also be reasonable. Courts scrutinize these agreements to ensure they don't go beyond what's necessary to protect the deal's value.

Partnership Dissolution (15 O.S. § 219)

Partners can agree, upon dissolution of a partnership, not to compete with the continuing partnership business within a reasonable geographic scope. Similar restrictions may apply to members of limited liability companies under certain circumstances, depending on the operating agreement and the nature of the departure.

Trade Secret Protection

While Oklahoma invalidates traditional non-competes, employers can still protect their legitimate trade secrets. Non-disclosure agreements (NDAs) that protect truly confidential information are enforceable.

Additionally, an employee who takes trade secrets to a competitor can be liable for misappropriation under the Oklahoma Uniform Trade Secrets Act—even without a non-compete agreement. This statute provides powerful remedies including injunctive relief and damages, and in cases involving willful and malicious misappropriation, courts can award exemplary damages up to twice the amount of actual damages. When an employee steals proprietary information, the legal framework for holding them accountable is robust — the issue is more about properly documenting and protecting that information than about restricting where someone can work.

The key distinction: you can work for a competitor; you just can't take your former employer's secrets with you.

What Employers Can (and Often Do) Require

Even though non-competes are generally unenforceable, Oklahoma employers often use related agreements that may have effect:

Non-Disclosure Agreements (NDAs)

NDAs prohibiting disclosure of confidential information are enforceable if they protect legitimate trade secrets or confidential business information. Unlike non-competes, NDAs don't prevent you from working—they just limit what information you can share or use.

Non-Solicitation Agreements

Agreements not to solicit former coworkers or customers are more complicated. Oklahoma courts have sometimes treated these as disguised non-competes and refused to enforce them. Other times, narrowly tailored non-solicitation provisions have been upheld.

The key is whether the agreement functions as a non-compete in practice. If it effectively prevents you from doing your job in your field, it may be unenforceable even if it doesn't say "non-compete." Oklahoma courts look at the substance and practical effect of an agreement, not just its label. An agreement titled "Restrictive Covenant" or "Customer Protection Agreement" that operates to prevent you from practicing your profession is still void under 15 O.S. § 219A.

Customer and Employee Lists

Protecting customer lists and employee information through confidentiality agreements is generally acceptable. Using your former employer's customer database to poach clients may be actionable even without a non-compete.

Should You Sign?

If your employer asks you to sign a non-compete as a condition of employment:

You can sign it. It's probably unenforceable anyway. Refusing to sign might cost you the job, and the agreement likely won't bind you later.

Read it carefully. Understand what you're signing. Some agreements include arbitration clauses, forum selection provisions, choice-of-law clauses that may attempt to apply another state's more restrictive law, or other terms that might affect you regardless of the non-compete.

Consider negotiating. If you have leverage, you might ask to modify or strike the non-compete provision. Some employers will agree rather than lose a candidate.

Keep a copy. Whatever you sign, keep your own copy of all employment agreements.

If Your Former Employer Threatens Enforcement

Sometimes employers try to enforce non-competes even in Oklahoma, hoping employees won't know their rights.

If you're threatened:

Don't panic. The law is likely on your side.

Don't assume you're bound. A threatening letter doesn't mean the agreement is enforceable.

Document the threat. Keep copies of any communications.

Consult an attorney. Get a legal opinion on whether the specific agreement is enforceable in your situation.

In most cases, a lawyer's letter explaining Oklahoma law ends the matter. Employers who understand the law rarely pursue losing cases. If you're facing a non-compete threat, contact us for a free consultation to understand your rights and options.

What If You're the Employer?

If you're an Oklahoma employer trying to protect your business:

Non-competes won't help. Don't rely on agreements that won't be enforced.

Use proper NDAs. Protect genuinely confidential information through well-drafted non-disclosure agreements.

Identify real trade secrets. Know what qualifies as protectable—and take steps to maintain secrecy.

Document what employees have access to. If you ever need to prove misappropriation, clear records help. Maintaining access logs, confidentiality acknowledgments, and records of what information was shared with which employees creates the evidentiary foundation you'll need if a dispute arises later.

Frequently Asked Questions

Are non-compete agreements enforceable in Oklahoma?

For the most part, no. Oklahoma law (Title 15, § 219A) prohibits non-compete agreements that restrict an employee from working in their industry. However, employers can protect themselves through non-solicitation and non-disclosure agreements.

Can my employer stop me from taking clients when I leave?

Only if you signed a valid non-solicitation agreement. Oklahoma allows agreements that prevent you from soliciting the employer's established customers — but cannot prevent you from working for a competitor generally.

What is protectable as a "trade secret" in Oklahoma?

Trade secrets include information like customer lists, pricing strategies, proprietary processes, and formulas that derive economic value from being secret. The key requirements are that the information must be genuinely secret and the employer must take reasonable steps to keep it that way.

What should I do if my former employer threatens to sue over a non-compete?

Don't panic. Many non-competes signed in Oklahoma are unenforceable. Consult an attorney who understands Oklahoma's specific non-compete law — the answer may be that you're free to work wherever you choose.

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This article is for general information only and is not legal advice.