Noncompete enforceability between employers less than certain in OK

Most Oklahoma employers are familiar with the fact that the state has one of the strictest laws in the nation pertaining to noncompete agreements between employers and employees. But what about noncompetition or nonsolicitation agreements between two employers?

We won’t if you don’t

While not routinely used in the course of ongoing company operations, there’s a time and place for noncompete or nonsolicitation agreements between employers. For example, these agreements are commonly executed before negotiations regarding potential mergers or acquisitions. They’re also often included in contracts between employers and staffing agencies. Often, they contain nonsolicitation or no-poaching provisions that stop either employer from hiring employees who work for the other company.

While the general enforceability of traditional noncompete agreements between a company and an employee is relatively straightforward in Oklahoma, the enforceability of nonsolicitation or no-poaching agreements between two employers is less than certain and subject to debate.

Defining the terms

As an initial matter, it’s important to recognize these aren’t nonsolicitation agreements between an employer and employee. As such, they aren’t enforceable under Okla. Stat. tit. 15, § 219(B), which states: