Your company invests a significant amount of time, effort and money in recruiting and training high-quality employees. The entire process is designed to create a team that will drive your business forward and increase revenue. Many companies attempt to protect their investment by requiring employees to sign non-compete agreements.
So, what happens when that top talent wants to leave you to work for a competitor or start their own business? Is the non-compete agreement enforceable?
Oklahoma protects job mobility
Oklahoma has one of the most restrictive statutes regarding non-compete agreements. Any employee contract that restricts someone from engaging in a lawful profession, trade or business is typically unenforceable.
While some states allow non-compete agreements with reasonable scope and duration, Oklahoma promotes free enterprise, and such an agreement is likely to be challenged in court. Furthermore, the court may impose penalties for violating the law.
However, there are different ways to protect your business’s interests. While non-compete agreements are banned, Oklahoma does permit businesses to have non-solicitation agreements. These can prevent a former employee from soliciting your employees or clients.
A business is also allowed to protect trade secrets, proprietary information and other confidential items. The Oklahoma Uniform Trade Secrets Act permits businesses to require employees to sign confidentiality agreements to protect sensitive information throughout their employment and after they leave.
To protect your business while complying with Oklahoma’s laws, you may want to consider the following strategies:
- Use non-solicitation and confidentiality agreements, but ensure they are carefully drafted. Avoid broad language and keep the focus narrow.
- Have clear policies and procedures in place to identify, label and safeguard trade secrets.
- Regularly review your existing employee contracts to ensure they comply with existing laws.
You will want to work with someone who can tailor your agreements to your specific business needs while still ensuring compliance with Oklahoma’s laws. They will have the knowledge and expertise to litigate on your behalf if an employee violates those agreements.