§ 1. Governing Statutory & Common Law Authority
The enforceability of non-competition agreements in Rhode Island is governed by R.I. Gen. Laws § 28-59-1 et seq. (Noncompetition Agreement Act, 2020). Non-competes banned for employees earning below $39,900/year (2026). Also banned for nonexempt employees, students, young workers under 18, and workers terminated without cause.
Recent legislative developments: 2020 statute established protections.
§ 2. Compensation Threshold Requirements
Rhode Island imposes a statutory compensation threshold for non-compete enforcement. Under current law, non-compete covenants are presumptively void for employees earning below the statutory minimum. 2026 threshold (250% of federal poverty level). The threshold is $39,900/year — but whether your total compensation qualifies depends on how your state counts bonuses, commissions, and equity.
§ 3. Temporal Limitations on Post-Employment Restrictions
Rhode Island limits enforceable non-compete duration to 12 months from separation. Statutory maximum of 1 year. Agreements exceeding this cap may be subject to judicial modification or voided entirely.
§ 4. Judicial Modification (Reformation Doctrine)
Rhode Island follows the reformation doctrine, granting courts broad authority to rewrite overbroad non-compete terms. This is the most employer-favorable approach — even a poorly drafted agreement may be reshaped into an enforceable restriction.
§ 5. Statutory Exemptions & Carve-Outs
Rhode Island law exempts certain workers from non-compete enforcement:
- Nonexempt employees
- Students and interns
- Workers under 18
- Workers terminated without cause
§ 6. Consideration & Contract Formation
Must be part of a formal employment agreement. Whether this is legally sufficient — especially for agreements presented mid-employment rather than at hiring — is frequently contested.
§ 7. Effect of Involuntary Termination
Expressly unenforceable if employee is terminated without cause. Courts may apply heightened scrutiny when the employer initiated the termination, particularly for termination without cause or mass layoffs.
Practitioner Notes
Broad set of employee protections.