Rhode Island Non-Compete Agreement
Rhode Island enforces non-competes but not against low-wage workers under 250% of the poverty level or other protected employees. Attorney review available.
Introduction
Rhode Island channels its non-compete rules through a single named statute, the Rhode Island Noncompetition Agreement Act (R.I. Gen. Laws chapter 28-59), in force since January 2020. Its centerpiece, Section 28-59-3, bars a non-compete against four kinds of workers no matter how the clause is drafted: an employee classified as nonexempt under the federal Fair Labor Standards Act, an undergraduate or graduate student in an internship or short-term job, an employee age 18 or younger, and a low-wage employee. Section 28-59-2 pins that last category to earnings, defining a low-wage employee as one whose average annual earnings are not more than 250 percent of the federal poverty level for individuals, so a large share of lower-earning Rhode Islanders cannot be held to a non-compete at all. Outside those four categories, the Act stays quiet on the details. It fixes no maximum duration, draws no geographic line, and orders no garden-leave payment. What governs instead is Rhode Island common-law reasonableness: a court here generally asks whether the restraint guards a legitimate business interest, such as trade secrets, confidential information, or customer goodwill, and whether it is reasonable in both length and reach, no broader than the interest requires. When a clause overreaches, Rhode Island judges typically trim it back to what is reasonable rather than tear up the whole covenant. Nonsolicitation covenants, confidentiality agreements, and sale-of-business covenants sit outside the Act entirely. This page walks through how Rhode Island treats non-competes and offers a template scoped to what the state actually allows. Treat it as a state-law overview, not a promise that any single clause will survive review.
Key Things to Know
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Rhode Island governs employee non-competes through a named statute, the Rhode Island Noncompetition Agreement Act (R.I. Gen. Laws chapter 28-59), effective January 2020. It does not ban non-competes outright, but Section 28-59-3 makes one unenforceable against four protected groups of workers, so in Rhode Island eligibility is the threshold question, not scope.
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Section 28-59-3 names the four workers a Rhode Island non-compete cannot bind: an employee who is nonexempt under the Fair Labor Standards Act, an undergraduate or graduate student intern, an employee age 18 or younger, and a low-wage employee. A clause signed by any of them is unenforceable here, however carefully it is written.
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The low-wage carve-out turns on earnings, not job title. Section 28-59-2 treats a worker as low-wage when average annual earnings are not more than 250 percent of the federal poverty level for individuals. Because that HHS figure is republished each year, verify the current guideline before applying it, and do not borrow another state's fixed salary cutoff for Rhode Island.
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For a worker outside the four categories, the Rhode Island Act names no maximum term and no mileage limit. Enforceability then rides on common-law reasonableness, under which a Rhode Island court generally looks for a legitimate business interest and a restraint reasonable in time and geographic scope, no broader than necessary.
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Rhode Island imposes no advance-notice period, no right-to-counsel statement, and no garden-leave pay, unlike the Massachusetts statute the Act resembles. Consideration falls under Rhode Island contract law, which generally demands something of value, and whether continued at-will employment alone supports a mid-employment non-compete is fact-specific.
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Overbreadth is not automatically fatal in Rhode Island. Courts here generally follow partial enforcement, narrowing an excessive restraint to what is reasonable rather than voiding it, and several covenants sit outside the Act altogether under Section 28-59-2: nonsolicitation covenants, NDAs, invention-assignment agreements, and sale-of-business covenants.
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Because protected workers cannot be bound and other non-competes face a reasonableness test, Rhode Island employers frequently rely instead on a confidentiality or nonsolicitation agreement and the Rhode Island Uniform Trade Secrets Act (chapter 6-41), which Section 28-59-3 expressly leaves intact.
Key decisions before you file
Before you file a Non-Compete Agreement in Rhode Island, a few decisions shape the document: which option to choose and what each one means. The Non-Compete Agreement guide walks through them.
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Rhode Island Requirements for Non-Compete Agreement
In Rhode Island an employee non-compete is enforceable, but the Rhode Island Noncompetition Agreement Act (R.I. Gen. Laws chapter 28-59, effective January 2020) makes one unenforceable against four categories of workers. For employees outside those categories, a non-compete must still protect a legitimate business interest and be reasonable in duration and geographic scope under Rhode Island common law. A restraint that exceeds those bounds may be narrowed or refused.
Rhode Island has a wage-based carve-out. Section 28-59-2 defines a low-wage employee as one whose average annual earnings are not more than 250 percent of the federal poverty level for individuals under the HHS poverty guidelines, and Section 28-59-3 makes a non-compete unenforceable against such an employee. Because the guideline updates each year, confirm the current figure (roughly $39,125 using the 2025 individual guideline) and do not rely on another state's fixed salary number.
Beyond low-wage employees, Section 28-59-3 makes a non-compete unenforceable against employees who are nonexempt under the federal Fair Labor Standards Act (most hourly, overtime-eligible workers), undergraduate or graduate students in an internship or short-term job, and employees age 18 or younger. A non-compete against any of these workers cannot be enforced in Rhode Island, regardless of how narrowly it is drafted.
The Rhode Island Act sets no maximum number of months and no fixed geographic limit for a non-compete. For a worker outside the protected categories, enforceability turns on common-law reasonableness: courts in Rhode Island generally require a legitimate business interest, such as trade secrets, confidential information, or customer goodwill, and a restraint reasonable in duration and geographic scope and no broader than necessary. Tie the restriction to where the employee worked and keep it as short as the interest allows.
Unlike some states, Rhode Island does not require advance notice before signing, a right-to-counsel statement, or garden-leave pay during the restricted period. Consideration is governed by Rhode Island contract law, which generally requires something of value for the promise. Whether continued at-will employment alone is enough for a non-compete signed after employment has started is a fact-specific question best confirmed with counsel.
Section 28-59-2 excludes several covenants from the definition of a noncompetition agreement, so the worker carve-outs do not restrict them: covenants not to solicit or hire employees, covenants not to solicit customers, clients, or vendors, nondisclosure or confidentiality agreements, invention-assignment agreements, sale-of-business covenants by a significant owner receiving significant consideration, and separation agreements giving the employee at least seven business days to rescind. These are analyzed under general Rhode Island reasonableness principles.
Rhode Island courts generally follow partial enforcement, meaning a court may in its discretion narrow an overbroad non-compete and enforce it only to the extent reasonable, rather than voiding it outright. This is a case-law approach, not a statutory guarantee, and a court may refuse to rewrite a clause it views as drafted unreasonably or in bad faith. Because a non-compete cannot bind protected workers, Rhode Island employers often protect information with a confidentiality or nonsolicitation agreement and the Rhode Island Uniform Trade Secrets Act (chapter 6-41) instead.
The 2024 Federal Trade Commission non-compete rule was set aside by a federal court before it took effect, so it is not currently binding, and its status remains unsettled. Rhode Island does not depend on it: the Rhode Island Noncompetition Agreement Act (chapter 28-59) independently governs non-competes here, barring them against low-wage, FLSA-nonexempt, intern, and under-19 workers and otherwise applying common-law reasonableness.
Frequently Asked Questions
Yes, though the Rhode Island Noncompetition Agreement Act (R.I. Gen. Laws chapter 28-59) puts real fences around them. Section 28-59-3 makes a non-compete unenforceable against four groups: employees who are nonexempt under the federal Fair Labor Standards Act, undergraduate or graduate student interns, workers age 18 or younger, and low-wage employees. For every other worker the covenant still has to clear Rhode Island's common-law reasonableness test before a court will enforce it.
The Act names no maximum number of months. Rhode Island's statute carves out protected workers but hands duration to common-law reasonableness, so a court here enforces a non-compete only for a stretch that is reasonable and no longer than a legitimate business interest needs. As a practical matter, a tightly drawn restriction of roughly a year stands a far better chance in Rhode Island than a long or open-ended one.
Section 28-59-3 names four. A Rhode Island non-compete cannot reach an employee classified as nonexempt under the Fair Labor Standards Act (most hourly, overtime-eligible staff), an undergraduate or graduate student in an internship or short-term job, an employee age 18 or younger, or a low-wage employee. Sign one with any of these workers and it is unenforceable in Rhode Island, no matter how narrow the wording.
Section 28-59-2 sets the line at earnings, not title: a low-wage employee is one whose average annual earnings are not more than 250 percent of the federal poverty level for individuals under the U.S. Department of Health and Human Services guidelines. Since that guideline is reissued yearly, the dollar cutoff drifts; for scale, 250 percent of the 2025 individual figure runs about $39,125. Anyone at or below the current number cannot be bound by a non-compete in Rhode Island, so confirm the present-year guideline before you rely on a dollar amount.
No. The Rhode Island Noncompetition Agreement Act, unlike the Massachusetts law it echoes, demands no advance notice before signing, no written statement of the right to consult counsel, and no garden-leave pay during the restricted period. Consideration runs through ordinary Rhode Island contract law, which generally wants something of value behind the promise. Whether continued at-will employment by itself supports a non-compete signed after the job began is fact-specific and worth checking with counsel.
Usually, yes. Rhode Island courts generally take a partial-enforcement approach, meaning a court may in its discretion pare an overbroad restraint down to what is reasonable and enforce only that much, instead of striking the clause outright. It is not automatic: a court may decline to rewrite a covenant it sees as drafted in bad faith or plainly too broad. The safer path in Rhode Island is to keep duration, geography, and restricted activities narrow from the outset.
They use a confidentiality or nondisclosure agreement, a nonsolicitation covenant, and the Rhode Island Uniform Trade Secrets Act (R.I. Gen. Laws chapter 6-41). These covenants fall outside the Noncompetition Agreement Act, and Section 28-59-3 expressly preserves an employer's ability to keep a former employee from disclosing trade-secret information. These tools protect confidential information and customer relationships in Rhode Island without the worker carve-outs and reasonableness limits that apply to a true non-compete.
No. In 2024 the Federal Trade Commission issued a rule that would have banned most non-competes nationwide, but a federal court set it aside before it took effect, so it is not currently in force and its status has remained unsettled. Either way, Rhode Island's own statute, the Rhode Island Noncompetition Agreement Act (chapter 28-59), independently governs non-competes here: unenforceable against low-wage, FLSA-nonexempt, intern, and under-19 workers, and otherwise subject to common-law reasonableness.