If you use noncompete agreements to protect your business, you need to know what Rhode Island law allows. The state has not banned noncompetes but it does limit when you can enforce them.
What Rhode Island law allows and restricts
Rhode Island has not fully banned noncompete agreements. A proposed ban in 2024 did not become law. That means noncompetes are still allowed in many cases.
According to the Rhode Island Noncompetition Agreement Act which took effect on January 15, 2020, you cannot enforce a noncompete against certain types of workers. Before asking an employee to sign one, you should confirm they are not in a protected group.
- Low-wage employees: Workers earning 250% or less of the federal poverty level. For 2026, that is about $39,900.
- Non-exempt employees: Workers who qualify for overtime under federal wage law.
- Students: Undergraduate or graduate students in internships or short-term jobs while enrolled in school.
- Minors: Employees age 18 or younger.
If an employee fits into one of these groups, a court will not enforce the noncompete. It does not matter if the agreement seems fair.
The law also limits how long a noncompete can last. In most cases, it cannot extend beyond one year after the employee leaves. The geographic limit must match where your business actually operates. If the terms are too broad, a court may refuse to enforce them.
Using alternative restrictive covenants
Even if you cannot use a noncompete, you still have options. The law allows other types of agreements that protect your business interests. You may use:
- Non-solicitation agreements: Prevent employees from taking your customers or staff.
- Confidentiality agreements: Protect trade secrets and sensitive information.
- Invention assignment agreements: Clarify that work created on the job belongs to the company.
These agreements are often easier to enforce and can still protect your business.
Reviewing your agreements with counsel
Noncompete enforcement in Rhode Island depends on employee classification, compensation level and contract language. Small drafting errors or outdated terms could undermine your position.
Regularly reviewing your agreements under current employment law standards may reduce risk and improve enforceability. Consulting an attorney can help you assess compliance with the Rhode Island Noncompetition Agreement Act and determine whether your restrictive covenants reflect your operational needs.
