SB 697 – Oklahoma

Status: In Process
Year Introduced: 2023
Link: http://www.oklegislature.gov/BillInfo.aspx?Bill=sb697&Session=2300

SB 697 creates the Uniform Restrictive Employment Agreement Act. The measure regulates any
agreement or part of another agreement between an employer and worker that prohibits, limits,
or sets a condition on working other than for the employer after the work relationship ends or a
sale of a business is consummated. The measure shall only supersede common law to the extent
that it applies to a restrictive employment agreement and shall not affect any part of an
agreement designed solely to transfer, perfect, or enforce a patent, copyright, trade secret, or
similar right.
Restrictive agreements are prohibited by the measure unless the employer provides the
prospective employee with a copy of the agreement 14 days prior to the prospective employee’s
employment. A copy of a restrictive agreement shall also be provided 14 days prior to an
employee’s promotion or change in job title. The agreement shall also specify the type of work
activity, or extent of competition that the agreement prohibits, limits, or sets conditions on after
the work relationship ends. The worker may request a copy of the agreement at any time. The
worker may waive the 14-day requirement, provided, the worker may rescind the entire
employment agreement not later than 14 days after receiving it. The measure also requires noncompete agreements to remain narrowly tailored to protecting
legitimate business interests as outlined in the measure. Such agreements shall only be used if a
restrictive employment agreement cannot protect the legitimate interests outlined in the measure.

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