Key Takeaways
- Oklahoma Generally Doesn't Enforce Non-Competes: Oklahoma law voids most non-compete agreements. You generally can't be prevented from working in your field.
- Exceptions Exist: Non-competes tied to the sale of a business, dissolution of a partnership, or protection of trade secrets may be enforceable.
- You Can Still Sign One: Employers can ask you to sign a non-compete—they just usually can't enforce it against you later.
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.
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.
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.
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.
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.
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."
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, 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.
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.
Oklahoma's non-compete law provides strong protection for employees who want to work in their chosen field. If you've signed a non-compete and are worried about your next job, the law is probably on your side. If you're an employer, understanding what you can and can't enforce helps you focus on protections that actually work.
At Addison Law, we advise both employees and employers on non-compete and employment agreements. Whether you're trying to understand your obligations or protect your business, contact us for guidance.
Questions About a Non-Compete?
We can help you understand your rights.
This article is for general information only and is not legal advice.
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*This article is for general information only and is not legal advice.*