Noncompete Agreement in Oklahoma: What You Need to Know
A noncompete agreement, also known as a noncompete clause or covenant not to compete, is a legal agreement between an employer and an employee. The purpose of this contract is to prevent the employee from competing with the employer’s business after the employment relationship ends.
In Oklahoma, noncompete agreements are enforceable, but they must meet certain requirements to be valid. Here’s what you need to know:
1. The agreement must be reasonable in scope and duration.
Noncompete agreements in Oklahoma are only enforceable if they are considered reasonable in scope and duration. This means that the restrictions placed on the employee cannot be too broad or last too long. Courts will analyze the specific circumstances of each case to determine whether the restrictions are reasonable.
2. The agreement must protect a legitimate business interest.
Noncompete agreements in Oklahoma must protect a legitimate business interest of the employer. This can include trade secrets, confidential information, customer relationships, or goodwill. If the employer cannot show that the noncompete agreement is necessary to protect a legitimate business interest, the agreement is likely to be deemed unenforceable.
3. The agreement must be supported by consideration.
In Oklahoma, noncompete agreements must be supported by consideration, which means that the employee must receive something of value in exchange for signing the agreement. This can include a bonus, a promotion, or simply continued employment. If the employer fails to provide consideration, the noncompete agreement is unlikely to be enforceable.
4. The agreement must be in writing.
Noncompete agreements in Oklahoma must be in writing and signed by both parties. Oral or implied agreements are not enforceable. The agreement should clearly define the scope and duration of the restrictions, as well as any exceptions or limitations.
5. The agreement must not violate public policy.
Finally, noncompete agreements in Oklahoma must not violate public policy. For example, an agreement that prevents an employee from working in the same industry anywhere in the country for the rest of their life would likely be considered unreasonable and unenforceable.
In summary, noncompete agreements are enforceable in Oklahoma, but they must meet certain requirements to be valid. Employers should carefully consider the scope and duration of the restrictions, as well as the legitimate business interests they are seeking to protect. Employees should carefully review and negotiate the terms of any noncompete agreement before signing.