Who is protected from non-competes in Rhode Island?

Rhode Island's 2020 Noncompetition Agreement Act prohibits non-competes for non-exempt employees, students in internships, workers 18 or younger, low-wage workers earning below 250% of the federal poverty level, and employees terminated without cause.

How long can a non-compete last in Rhode Island?

Rhode Island law limits non-compete agreements to one year. The agreement must also include a garden leave provision or other mutually agreed consideration.

What happens to my non-compete if I'm fired in Rhode Island?

If you are terminated without cause or laid off, your non-compete is unenforceable under Rhode Island's Noncompetition Agreement Act, regardless of what the original agreement states.

Non-Compete Agreements in Rhode Island: 2020 Protections

Rhode Island's 2020 Non-Compete Law

Rhode Island enacted the Noncompetition Agreement Act (R.I. Gen. Laws Section 28-59-1 et seq.) effective January 15, 2020. This statute imposes specific requirements and restricts non-competes for certain categories of workers.

Workers Who Cannot Be Subject to Non-Competes

The statute prohibits non-competes for:

Non-exempt employees under the Fair Labor Standards Act (hourly workers eligible for overtime)
Undergraduate or graduate students in internships or short-term positions
Employees who are 18 years old or younger
Low-wage workers earning below 250% of the federal poverty level
Employees terminated without cause or laid off

The terminated-without-cause provision is significant: if you are fired for any reason other than cause, your non-compete is unenforceable.

Requirements for Enforceable Non-Competes

For workers not covered by the ban, a non-compete must:

Be in writing signed by both parties
Not exceed one year in duration
Be supported by a garden leave clause or other mutually agreed-upon consideration
Protect legitimate business interests limited to trade secrets, confidential information, or goodwill
Be reasonable in geographic scope and types of activities restricted

Garden Leave or Consideration

The statute requires either a garden leave provision (payment during the restricted period) or other mutually agreed-upon consideration independent of continued employment. This mirrors the approach taken by Massachusetts and provides employees with financial protection during the restricted period.

Notice Requirements

Non-competes must be provided to the employee:

At or before the formal offer of employment for new hires
At least 10 business days before the effective date for existing employees

Red Flags

Applied to non-exempt, hourly, or low-wage employees
Duration exceeding one year
No garden leave or alternative consideration
Not provided with adequate advance notice
Employer attempting to enforce after termination without cause

When to Consult a Lawyer

Consider consulting a Rhode Island employment attorney if you fall into a protected category and your employer is trying to enforce a non-compete, if the agreement lacks a garden leave provision, or if the notice requirements were not met.

This article is for informational purposes only and does not constitute legal advice. Consult a licensed attorney for guidance specific to your situation.