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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Business Contracts

Noncompete Agreement

Florida

Asked on May 21, 2023

Noncompete agreement for consultants?

I am a consultant who is looking to take on a new client, but the client requires me to sign a Noncompete Agreement. I want to make sure that I am not signing away my rights, and that the agreement is fair and reasonable. I am also interested in understanding how this agreement would affect my ability to work with other clients.

Venus C.

Answered May 30, 2023

Hello. I appreciate your concerns about signing a Noncompete Agreement. It's essential to protect your rights and ensure the agreement is fair and reasonable given that a noncompete typically restricts competing activities during or after the term of engagement. Without knowing more about the business relationship and reviewing the actual terms, whether the non-compete is fair, reasonable, or even enforceable remains an open-ended question. Bearing this in mind, if the noncompete is preventing you from taking on other clients during or after the end of your relationship (or both), the scope of this restriction must be reasonable in terms of time, geographic area, and the specific activities it seeks to prevent. For example, does the noncompete specify the types of clients, industries, or geographic areas that are off-limits? What is the duration of the noncompete? If the client breaches your main agreement, will that render your noncompete void and unenforceable? These are just a few general questions that require a thorough review and analysis against Florida non-compete laws. Overall, the ultimate goal is to carefully review the terms to understand how they might impact your ability to take on new clients. If you don’t understand or are unsure about the contractual terms and their legal implications, it's highly recommended you consult with an attorney who can review the noncompete and provide you with personalized legal advice before you sign.

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Employment

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Asked on Mar 31, 2021

Can I get out of my noncompete agreement?

I am looking at my options.

Donya G.

Answered Mar 31, 2021

You may be able to be released from a non compete. You would have to review the language in the non compete to see the expiration. DISCLAIMER The answers to these questions do not constitute legal advice and does not create an attorney-client relationship with the attorney and anyone who reviews these responses.

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Employment

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Washington

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.

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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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Employment

Noncompete Agreement

Connecticut

Asked on Aug 1, 2023

Noncompete agreement and change of control?

I recently accepted a new position with a company that has requested that I sign a noncompete agreement. I understand the agreement and the limitations it puts on me, but I am concerned about how the agreement would be affected if the company is sold or changes ownership in the future. I would like to understand my legal rights in the event of a change of control.

Thomas L.

Answered Aug 4, 2023

If the future company buys the equity of your current employer, the Non-Compete continues in effect. If the future company buys the assets, the Non-Compete is terminated. I would request a sentence be added to the effect that "if there is a change of control of the Company (meaning more than 50% of the equity interest or 50% of the voting equity control) is sold or transferred, then this Non-Compete Agreement is terminated.

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Noncompete Agreement

California

Asked on Sep 12, 2022

i work for a employer from illinois ,however i am in california. My contract has non compete clause. will that be enforceable

My employer has placed me in a position thru another vendor. My employer contract with that vendor is ending. So vendor contacted me. However I am in contract with my employer for 1 year contract.

Christopher M.

Answered Sep 13, 2022

Short answer: Probably no, non-compete and non-solicitation clauses are not usually enforceable on an employee in California. Long Answer: Regardless of the choice of law provision in your contract, if an enforcement action is brought against you in California, the California courts will dismiss it as it goes against the "public policy of the state" unless your employer can make a really compelling case. Most states respect the stated public policy of other states when deciding matters against their citizens, so even if the case was brought in another states courts your soon to be former employer would probably be powerless to get a judgement enforcing your non-compete.

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