Rhode Island Noncompete Agreement: What's Included and Enforceability

Quick Facts — Noncompete Agreement Lawyers

Is a Non-Compete Agreement Enforceable in Rhode Island?

Yes. In Rhode Island, non-compete agreements are permitted, however these contracts must follow certain rules and exceptions.

Non-compete exceptions in Rhode Island include:

  1. Non-competes cannot be entered into by low wage workers. Low wage workers are those who make less than 250% of the federal poverty level. For 2023, that is $33,975 annually for a one-person household.
  2. Short-term employees or students who participate in internships cannot enter into non-compete agreements.
  3. Employees under the age of 18 cannot be restricted by a non-compete agreement.

How Long Does a Rhode Island Non-Compete Agreement Last?

Courts in Rhode Island have restricted non-compete maximum terms to one year. In addition, the geographic area is limited to only areas where the employer conducts business.

How Do You Get Around a Non-Compete Agreement in Rhode Island?

To get around a non-compete agreement in Rhode Island, an employee must show a court that the agreement does not adhere to the rules and regulations governing non-compete agreements set out by state laws and the supreme court. Some of these rules include:

  1. Protectable interest. The agreement must protect an employer’s legitimate business interests and cannot be used to limit competition.
  2. Reasonableness. The contract terms must be reasonable and cannot impose undue hardship on the employee.
  3. Consideration. A non-compete agreement must be supported by adequate consideration. In Rhode Island, continued employment is sufficient consideration.

If a non-compete agreement fails to follow these standards, an employee can move to have the agreement terminated.

What Voids a Rhode Island Non-Compete Agreement?

A non-compete agreement in Rhode Island is void if an employee can prove that they didn’t enter the contract voluntarily or if they entered the contract under fraud. All contracts must be signed free of coercion or threat. In addition, enticing someone to sign a contract under false pretenses will make the contract void.

Frequently Asked Questions

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Elizabeth W.

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Free Consultation
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9 Yrs Experience
Licensed in RI MA
Suffolk University Law School

Liz is an experienced insurance professional, having worked with carriers and brokers for over 10 years. She can review or draft a variety of commercial agreements and is here to help your business. Specialties include: Master Service Agreements, business process outsourcing, marketing and partnership agreements, broker agreements, business associate agreements, and NDAs.

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Nicholas M.

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Free Consultation
Providence, Rhode Island
16 Yrs Experience
Licensed in RI ME, NC, NH, VT
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Nicholas Matlach is a cybersecurity expert (CISSP) and an attorney who is dedicated to helping small businesses succeed. He is a client-focused professional who has a deep understanding of the challenges that small businesses face in the digital age. He also provides legal counsel to small businesses on a variety of issues, including formation, intellectual property, contracts, and employment law.

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Transactional attorney and corporate in house counsel for 15 years. Draft all types of contracts and employment agreements.

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David W.

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David has experience assisting individuals, startups, mid-sized, and publicly traded companies with various business, corporate, and real estate matters including residential and commercial real estate sales, acquisitions, financing and leasing; contract drafting and negotiation; regulatory compliance; and business acquisition, sale, formation, and dissolution.

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Lawyer Reviews for Rhode Island Noncompete Agreement Projects

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"Jeff was very responsive through our project. He did what he said he was going to, and achieved the result we hoped for. I would certainly recommend Jeff and his work. Thank you, Jeff!"

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"Paul was stellar in every way. Highest recommendation possible; I will be continuing to partner with him. Thank you, Paul."

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During my tenure as VP & Division General Counsel of PepsiCo Inc. in Chicago, I built upon my diverse career overseeing legal matters for both the domestic and international businesses of PepsiCo and The Quaker Oats Co. My extensive practice areas included M&A, contracts, competition, NDAs, regulatory compliance, consumer product & protection, environmental, patents, and advertising regulations. Throughout my professional journey, I navigated legal complexities associated with an eclectic range of products, spanning juices, sports drinks, cereals, snacks, needlepoint kits, canned goods, eyeglasses, men's suits, car seats and toys. For further information, see my LinkedIn: http://linkedin.com/in/karen-hunter-a700179

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Employment

Noncompete Agreement

Delaware

Asked on Dec 12, 2023

Employee contract, such as non compete/non solicit, could having this contract ever result in criminal/jail time?

If someone accuses you of fraud, because they believe you never had intended to honor your employment contract such as non-compete/non-solicit. Could this ever become a criminal case, resulting in criminal/jail time?

Matthew S.

Answered Dec 16, 2023

No, at worst, it is a breach of a contract which is a civil matter to be handled in civil court.

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Employee Rights

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Asked on Dec 5, 2024

Can my employer enforce a non-compete agreement I signed even though I was not provided any additional compensation or benefits in return?

I recently started a new job and was asked to sign a non-compete agreement as a condition of employment. However, I just found out from a colleague that my employer has been enforcing the non-compete agreement against former employees and preventing them from working in similar roles at competing companies. I am concerned because I was not given any additional compensation or benefits in exchange for signing the agreement, and I believe it may be unfair and potentially unenforceable. Can my employer legally enforce the non-compete agreement even though I did not receive any additional compensation or benefits in return?

Damien B.

Answered Dec 6, 2024

Hello! Generally, New York courts require that a non-compete agreement be supported by adequate consideration. If the agreement is signed at the beginning of employment, the job itself may serve as adequate consideration. However, if the non-compete is signed after employment begins, the employer may need to offer additional benefits, such as a raise or promotion, for the agreement to be enforceable. There are other defenses against enforcement. For a non-compete agreement to be enforceable, it must be reasonable in terms of duration, geographic scope, and the scope of activities it restricts. A court will evaluate whether the agreement is necessary to protect the employer’s legitimate business interests, such as confidential information or customer relationships. If not, a court could rule the noncompete is not enforceable.

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Employee Rights

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Asked on Jun 3, 2023

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I am an employee at a company that has recently asked me to sign a noncompete agreement. I am considering doing so, but I am concerned about whether or not the agreement would prevent me from taking on additional freelance work outside of my normal job. I am interested in moonlighting and need to know if a noncompete agreement would limit my ability to do so.

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If you moonlighting work is in the same business and same market, it is almost certainly prohibited by a noncompete agreement.

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I am a business owner who has recently acquired a new partner. We are in the process of drafting a Noncompete Agreement to ensure that neither of us will compete against each other in the same market. We are looking for advice on what should be included in the agreement and how it should be enforced.

Daniel D.

Answered Aug 4, 2023

The one thing to make sure with noncompete agreements is that it is reasonable in terms of duration and the area you cannot compete in. Courts use a reasonableness test to determine whether a noncompete agreement is valid. If provisions are deemed to be unreasonable and fail the test, they could be altered or struck out of the agreement.

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Merry K.

Answered Aug 8, 2023

If you are in Washington State, where I'm licensed, as opposed to D.C., please let me know what kind of help you are looking for - have you already signed the agreement? I've been a WA State attorney for nearly 38 years, and specialize in employment law.

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