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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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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Employment

Noncompete Agreement

Washington

Asked on Jul 25, 2023

Noncompete agreement and public policy?

I recently accepted a job offer with a new employer who asked me to sign a noncompete agreement. I am concerned that the agreement may not be in line with public policy and wanted to get a professional opinion from a lawyer to make sure I am not putting myself in a difficult situation.

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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Florida

Asked on May 19, 2023

Noncompete agreement choice of law?

I recently accepted a job offer with a new employer and they sent me a Noncompete Agreement to sign. I have some questions about the agreement, specifically related to the choice of law. My former employer and I are in different states, and I want to make sure I understand the implications of the agreement before signing.

Venus C.

Answered May 23, 2023

Congratulations on your new job. Generally, a choice of law clause contained in a non-compete agreement indicates which state law will govern the contract. By way of general example, let's pretend we have a non-compete agreement that states the choice of law is Florida. Let's also pretend the parties to this agreement had a dispute and one party filed a lawsuit against the other in the state of New York. In this pretend scenario, because the parties agreed Florida to be their choice of law for the non-compete agreement, the court in New York would abide by that contractual agreement and apply Florida law. While choice of law clauses are commonly used to indicate what law will apply to a contract, the language used or omitted plays a significant role in their interpretation and enforceability.

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Employment

Noncompete Agreement

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Asked on Jul 11, 2023

Noncompete agreement termination options?

I recently left my job after signing a Noncompete Agreement. I am looking for a new job, but I am concerned about the restrictions in the Noncompete Agreement and how it might affect my ability to find a new job. I am looking for advice on my options for terminating or modifying the Noncompete Agreement so that I can find a new job without having to worry about any potential legal repercussions.

Merry K.

Answered Aug 15, 2023

I am a WA State employment attorney. If you didn’t receive anything in return for signing the non-compete, it may be relatively easy to get out of it. If, however, you signed in return for something, such as a severance package, it will be challenging to get out of the agreement. However, many non-compete agreements are written overly broadly and may not be enforceable under the laws of WA and other states. You may want to consult with a WA State employment attorney for a review of the documents and law(s) of the state(s) where you may want to work or set up a business. (A WA State attorney can only provide legal advice in WA, but can help you find applicable law/case decisions for other states but without providing anything beyond information, much like a law librarian).

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Noncompete Agreement

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Asked on Jun 3, 2023

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I recently accepted a promotion within my company and was asked to sign a noncompete agreement. I am concerned that if I accept the promotion and then leave the company, that I will not be able to take a similar position with another company. I am also worried that if I don't accept the promotion, I may be at risk of being terminated. I need to know what my rights are and what the implications are of signing the noncompete agreement.

Thomas L.

Answered Jun 16, 2023

It depends on the terms of the non-compete and the size of your employer. Without seeing the agreement and knowing the size of your employer, I can't offer more advice.

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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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