Employment Contracts & Agreements In Oklahoma

At-Will Employment

By default, employees are "at-will," meaning that the employer is not legally obligated to hire or keep your job for you, and you are not legally obligated to go to work. In fact, Oklahoma law has recognized that an employer can terminate an employee for any reason or no reason at all. The only exception is if an employer terminates an employee for a reason that is against public policy, or if in violation of an employment agreement.

Public Policy

Terminating someone's employment for a reason against public policy includes, for example, race, religion, disability, and gender. Also, Oklahoma public policy provides that an employer cannot terminate an employee because they filed a workers compensation claim; however, an employer can terminate an employee after a workers compensation claim if the employee cannot perform in the job.

Claims against an employer for discrimination are generally required to be first worked through either the Equal Employment Opportunity Commission (EEOC) or the Oklahoma Human Rights Commission (OHRC) before an employee can sue in state or federal court.

Employment Agreements

Oklahoma law recognizes and honors employment agreements between an employee and employer. If an employment agreement is in place, it is considered as a priority in determining the relationship and resolving any disputes between the parties. Generally, the higher the compensation potential for an employee, the more it makes sense to have an employment agreement.

A well-drafted employment agreement should be the result of a reasoned negotiation between the employee and employer. Although a Google search for "employment agreement" or "employment contract" may result in many boilerplate documents, an understanding of Oklahoma business and employment law as well as federal labor laws is advised, and executive employment agreements are unique in and of themselves.

Non-Compete Clauses

A non-compete clause (or sometimes called a "restrictive covenant") in an employment agreement is a common point of dispute between the employee and employer. These clauses may be honored by a court, but unless properly drafted, a court may simply declare such a contract provision void and unenforceable. Like all contracts, there are some fundamental principles to follow as well as some specific Oklahoma law that should be incorporated.

Besides federal and state statues and regulations, courts' rulings in federal and state case law are also very important. Pertinent Oklahoma statutes include Contracts (Title 15) and Labor (Title 40) found at the Oklahoma State Court Network (OSCN). In particular, Oklahoma law provides a statute entitled "Restraint of Trade Void," found at 15 O.S. § 217:

"Every contract by which any one is restrained from exercising a lawful profession, trade or business of any kind, otherwise than as provided by Sections 218 and 219 of this title, or otherwise than as provided by Section 2 of this act, is to that extent void."

Basic Contract Law & Disputes

Whether you are an employee or employer, if you find yourself in a dispute over an employment agreement, you should contact an attorney. These cases may in many instances be quickly resolved by applying basic Oklahoma contract law. Before making statements, writing emails, or exchanging correspondence with the other party, experienced legal advise is well worth it. A quick resolution to an employment dispute is always better than a protracted fight, especially if a lawsuit can be avoided.

For those involved in an employment agreement dispute, the best and most often given advise is unfortunately not applicable -- that is, to have an attorney draft the agreement. The second best advise is, after a dispute has started and both sides are dug in, get an attorney involved to review the case and all documents; if there is a way to derail a lawsuit before it starts, usually everyone is better off.

Occasionally, employment disputes can lead to a business committing a tort against an individual or another business. Unlike contract law, punitive damages are possible in tort claims, making for potentially even greater risk in litigation. For information on business torts, see Oklahoma Business Law.

Severance Agreements

Disputes are common between an employee and employer over the severance portion of an employment agreement. Particularly in executive employment, equity and partnership agreements, certain calculations are critical, including those regarding stock options, buy-out, buy-sell, severance pay, and benefits. Likewise, communications between the parties at this stage of the relationship is of the utmost importance. As with any relationship, the jockeying and horse-trading ability of each party has a part in the strategy and tactics used. Both parties are often best served in these negotiations if they're properly informed and well-advised of their rights.

Regardless of whether your interest is for yourself as the employee, or on behalf of the employer, an understanding of Oklahoma law regarding the business organization itself can be extremely important. For example, is the corporation or LLC authorized to conduct the transaction it is proposing; is the entity operating within the scope of the law; are the parties demanding concessions that a court would consider void or unlawful; if someone files a lawsuit, are they entitled to attorney fees if they win; are they entitled to Oklahoma's provision for interest as punitive damages? A straightforward and relatively simple review by an attorney experienced in business matters is advised so as to avoid unnecessary delay in getting and staying on the right track.

Employment Agreement Business Lawyers

The lawyers at Meyer, Leonard & Allison are experienced in the law of business, with particular emphasis and experience in small and medium sized businesses, including start up, entrepreneurial ventures such as equity and capital formation, mergers, acquisitions, and issues faced in growing businesses, including employment agreements. Our attorneys additionally have extensive experience in managing the unique issues accompanying executive agreements from both the individual executive and business perspective.

The lawyers at Meyer, Leonard & Allison can assist in writing agreements, reviewing agreements, and negotiating for or representing parties in agreement disputes.

When a business or individual finds itself/himself/herself in a dispute or potential legal issue, the lawyers at Meyer, Leonard & Allison are highly knowledgeable and capable in representing your organization or you as an individual.

For a free consultation, call 405-702-9900.