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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I recently signed a Noncompete Agreement with my current employer. I am looking to explore other opportunities in my industry and want to know what restrictions my noncompete agreement might have on me. I am interested in understanding the limitations of the agreement and if there are any potential implications of taking a job in the same industry.

Danielle G.

Answered Jul 11, 2023

In order to ascertain the limitations and implications, you would need to review the specific language of the agreement. If the non-compete is very broad, it's possible it would not be enforceable. In New York, for a non-compete agreement to be enforceable, it must be for a reasonable period of time and limited geographic scope. It also must protect the employer's legitimate interest. For example, the restrictions must protect confidential information or specialized skills you gained while on the job, or some other legitimate interest. If the agreement goes beyond those limitations, a court could find the non-complete to be unreasonable and unenforceable, in whole or in part. As to what restrictions your specific non-compete imposes (and the reasonableness of those restrictions), you would need to look at the specific language in the agreement. If you are unsure about the limitations, you should seek advice of counsel to help decipher the extent it would apply to your industry in general, and the likelihood it would be enforceable in court.

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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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