A Rhode Island Non-Compete Agreement can prevent current and former employees from taking information from one company and sharing it with a competitor.
In addition, a non-compete agreement in Rhode Island can prevent current and former employees from working in certain locations during and after their time with the company.
Is a Non-Compete Legally Enforceable in Rhode Island?
Yes, Rhode Island non-compete agreements are legally enforceable. They can be used to prevent employees from sharing information from one business with the competitors of that business; however, there are certain limitations and restrictions that Rhode Island non-compete agreements must abide by. Otherwise, they might not be legally allowed. [1]
Reasonable Use and Exemptions
A non-compete agreement in Rhode Island has to meet all reasonable use expectations for it to be legally enforceable. The non-compete agreement must be narrowly tailored, and the employer must be able to prove that the agreement protects a legitimate business interest. Furthermore, a non-compete agreement cannot harm the public interest.
Several examples of individuals cannot be subjected to a non-compete agreement. This includes physicians, employees who are under the age of 18, student interns, short-term employees, and FLSA nonexempt employees.
In addition, low-wage employees who are not learning more than 2.5 times the federal poverty level, based on their regular hours, cannot be subjected to the terms of a non-compete agreement.
- Enforceable when terminated without cause? Not decided
- Employee non-solicitation agreement permitted? Yes
- Customer non-solicitation agreements permitted? Yes
- Does continuing employment equal sufficient consideration? Yes
Non-Compete Agreement Rhode Island Limitations
A few limitations could be encountered when structuring a non-compete agreement in Rhode Island. Some of these limitations include:
Time Limitations
A non-compete agreement has no specific duration limit, but it must be reasonable. The duration of the non-compete must make sense given the nature of the business and cannot be excessive or unreasonably long. The statute of limitations in Rhode Island to file a lawsuit following a breach of a non-compete is ten years.
Geographical Limitations
A non-compete agreement in Rhode Island cannot place an overly harsh burden on an employee. If a judge decides the agreement is too broad, it could be thrown out. The employer must be able to justify why a non-compete agreement has the geographic limitations that it does.
Rhode Island Non-Compete Agreement Sample
Take a closer look at our Rhode Island non-compete agreement template, which is available for download in Word and PDF:
