Non-Compete Agreement in Oklahoma

[fauxhawk]

What is the name of your state (only U.S. law)? Oklahoma

A coworker and I were recently terminated by our employer. A week ago we received a notice from their attorney stating that we were in violation of our Nondisclosure and Non-compete agreement and to shut down a site we set up together.

In the contract in states "I agree not to compete for a period of 5 years within 100 mile radius. Competition means owning or working for a business of the following type: web design, web development, search engine marketing"

I have discovered that Oklahoma has a statute that reads "every contract by which any one is restrained from exercising a lawful profession, trade or business of any kind ... is to that extent void." I found a case in 2007 that found an employers contract in breach of this statute, I believe our case is very similiar. Here is the link to the case Okla. Court of Civil Appeals rules non-compete deal violates | Journal Record, The (Oklahoma City) | Find Articles at BNET

Prior to our termination we set up the site Ectomachine.com as an identity/portfolio for people to find us and hire us if desired. It is by no means a legally recognized business or corporation, it is simply an identity for a group of like minded web developers.This site is hosted in Arizona and our previous employer is located in Tulsa, OK. My first question is whether this alone breaches the previous definition of competition?

Also prior to our termination a friend of ours asked us to create a site for his business within the Tulsa area. This site was done on a cash basis as friends helping out friends. We designed and developed this site for our friend. Does this breach the previous definition of competition?

They are stating that a logo we designed for a local church was in breach of the contract. The definition above specifically states that the work cannot be web design, web development, search engine marketing but makes no mention of logos or identity. Does this breach the previous definition of competition?

Lastly I would like to know how this agreement can legally keep me from working in a field I have been trained to do for the next 5 years in the area I was born and raised. How am I suppose to make a living?

Thanks!

 

[Hot Topic]

Any chance the company that terminated you could also have been concerned that you might spend time you were supposed to devote to them on Ectomachine.com?

 

[pattytx]

5 years may be deemed unreasonable. See an attorney in your state who can review the agreement in its entirety.

 

[fauxhawk]

...

No, our job with them was an 8-5 and stuff we received of the site was strickly evening. We never worked on anything during regular business hours.

 

[eerelations]

I don't think it matters what time of day you did the work. I think it was perfectly legal - even without a non-compete agreement - for them to fire you for engaging in a competing business during the same calendar period that you were working for them.

That said, I agree with pattytx that preventing you from doing this for five whole years after you were legally let go may be overly-restrictive. You may want to consult with a local attorney about this part.

 

[fauxhawk]

I'm not arguing about being fired. In fact they gave another reason for that. My main dilemma is that they want us to turnover the domain name for the next 5 years or go through litigation. I guess I will get a consult from an attorney.

What really makes me mad is that they signed us up for prepaid legal but added an amendment that we couldn't use it against them even in defense. Lame!

 

[Mass_Shyster]

It appears that Oklahoma disfavors non-compete clauses. This statute was enacted in 2001:

Effective June 4, 2001, Okla. Stat. Tit. 15 §219A (“§ 219A”) changed the law on covenants not to compete in Oklahoma. It states:

A. A person who makes an agreement with an employer, whether in writing or verbally, 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 or in a similar business as that conducted by the former employer as long as the former employee does not directly solicit the sale of goods, services or a combination of goods and services from the established customers of the former employer.

B. Any provision in a contract between an employer and an employee in conflict with the provisions of this section shall be void and unenforceable.

I still suggest a consultation with an Oklahoma employment attorney to review your non-compete agreement. I doubt it would take long.