SB 1771 Summary

• Modifies Oklahoma law (15 O.S. 2011, Section 219A) to establish specific requirements for noncompetition agreements between employers/contractors and employees or contractors.

• Requires noncompetition agreements to be in writing and enforceable only if the person was employed for the previous 12 months and earned over $100,000 in compensation during that period.

• Permits agreements restricting direct or indirect business competition limited to 12 months, and restricting solicitation of clients/customers/vendors limited to 18 months, both geographically limited to the United States.

• Allows agreements restricting solicitation of employees or contractors for up to 12 months to prevent them from working for competitors.

• Authorizes courts and arbitrators to modify overly restrictive agreements to comply with statutory requirements rather than voiding them entirely; effective November 1, 2012.