The Red River Rivalry runs deep. Oklahoma is one of the last places where anyone would expect that Texas non-compete and non-solicit law would get respect. Texas generally favors the agreements; Oklahoma’s resistance to them is notorious. Conventional wisdom: Oklahoma law governs a non-compete or non-solicit signed by an employee working north of the Red River—even if the agreement picks Texas law.
Never count out the long arm of the law. The U.S. Court of Appeals for the Fifth Circuit recently sized up several Oklahoma bankers’ non-solicits using the law of the Lone Star State. Check out the bombshell in Cardonia v. Prosperity Bank. Thanks to the Fifth Circuit, Texas companies now have more ammo to pick Texas law (and venue) in non-competes and non-solicits for employees who work out-of-state.
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