Allowed above a pay floor

Non-compete law in Rhode Island

Rhode Island's 2019 Noncompetition Agreement Act makes a noncompete unenforceable against four groups of workers: employees classified nonexempt under the FLSA, student interns, employees 18 or younger, and 'low-wage' employees (average annual earnings, counting only the first 40 hours of each week, not above 250% of the federal poverty level for one person, about $39,900 using the 2026 HHS figure of $15,960). The statute sets no pay floor, time cap or notice rule for other workers, and covenants not to solicit customers or employees are outside its definition. Separately, covenants restricting a licensed physician's right to practice (§ 5-37-33) or, since 2024-06-17, an advanced practice registered nurse's right to practice (§ 5-34-50) are void except in a sale of a practice (limit 5 years). Bills in 2025 (S 302) and 2026 (S 2160, which would have prohibited noncompetes except between a seller and buyer of a business from 2027-01-01) passed the Senate but, per secondary trackers, died in the House.

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Employee non-competes
Only within the statute's conditions
Pay floor
$39,900 a year in 2026, adjusted annually (floats with the HHS poverty guideline; the statute does not say which guideline year applies)
How pay is measured
R.I. Gen. Laws § 28-59-2(7): 'low-wage employee' = average annual earnings (§ 28-59-2(2): wages for the first 40 hours of work in a week, excluding overtime, Sunday and holiday-rate hours) not more than 250% of the federal poverty level for individuals under the HHS guidelines. DERIVED figure: 250% x $15,960 (2026 HHS poverty guideline, one person, 48 contiguous states and DC, aspe.hhs.gov) = $39,900. The statute itself states no dollar amount. Noncompetes are unenforceable at or below this level.

Exceptions and special rules

  • Sale of a business: the statute allows a non-compete given by a seller.
  • Unenforceable against these workers regardless of pay: employees classified nonexempt under the FLSA, 29 U.S.C. 201-219 (§ 28-59-3(a)(1)); undergraduate or graduate students in an internship or short-term employment while enrolled, paid or unpaid (§ 28-59-3(a)(2)); employees age 18 or younger (§ 28-59-3(a)(3))
  • Sale-of-business covenants are outside the definition of 'noncompetition agreement' only when the restricted person is a significant owner, member or partner who receives significant consideration or benefit from the sale or disposal (§ 28-59-2(8)(iii))
  • Also outside the definition: covenants not to solicit or hire employees; covenants not to solicit or transact business with customers, clients or vendors; agreements originating outside employment; forfeiture agreements; nondisclosure/confidentiality agreements; invention assignment agreements; separation-related noncompetes if the employee has 7 business days to rescind; agreements not to reapply for employment (§ 28-59-2(8)(i)-(ix))
  • Employer may still agree with an employee not to share trade-secret information after employment (§ 28-59-3(c))
  • The statute does not void the rest of the contract, and a court may still impose a noncompetition restriction as an injunctive remedy for breach of another agreement or of a statutory or common-law duty (§ 28-59-3(b))
  • Physician licensed under R.I. Gen. Laws ch. 5-37. Any contract establishing a partnership, employment or other professional relationship with a physician is void and unenforceable as to any restriction on the physician's right to practice medicine, including post-termination geographic/time restrictions and bars on treating or soliciting current patients of the employer; the rest of the contract survives. Does not apply to the purchase and sale of a physician practice if the covenant lasts no more than 5 years. (R.I. Gen. Laws § 5-37-33)
  • Advanced practice registered nurse (licensed under R.I. Gen. Laws § 5-34-45). Any restriction on an APRN's right to practice in a partnership, employment or other professional-relationship contract is void and unenforceable (the rest of the contract survives), including post-termination geographic/time limits and bars on treating or soliciting current patients of the employer. Does not apply to the purchase and sale of a practice if the covenant lasts no more than 5 years. Effective 2024-06-17 (P.L. 2024, ch. 118 and ch. 128). (R.I. Gen. Laws § 5-34-50)

Non-solicitation clauses

Covenants not to solicit or hire the employer's employees and covenants not to solicit or do business with its customers, clients or vendors are excluded from the Act's definition of noncompetition agreement (§ 28-59-2(8)(i)-(ii)); the Act therefore does not restrict them. Their enforceability is common-law.

Remedies

The chapter text read (§§ 28-59-1 to -3) creates no private right of action, penalty or fee-shifting; the sole stated consequence is that a covered noncompetition agreement is not enforceable (§ 28-59-3(a)).

Which agreements it covers

Enacted by P.L. 2019 ch. 204 and ch. 264. The section text read does not state an effective date or whether earlier agreements are covered; not verified.

Recent changes

  • 2026-06-11. S 2160 (Sen. LaMountain; would prohibit noncompetes except between a seller and buyer of a business, effective 2027-01-01) crossed over from the Senate on 2026-03-31, was referred to House Labor on 2026-04-01, and is listed 'Dead' on 2026-06-11 by BillTrack50. SECONDARY: the General Assembly site is unreachable from our egress, so House disposition was not read from the primary. Secondary source (secondary, not the statute)
  • 2025-06-20. 2025-S 302 SUB A (low-wage and other limits) passed the Senate 2025-06-18; listed 'Dead' 2025-06-20 by BillTrack50. SECONDARY (primary unreachable). Secondary source (secondary, not the statute)
  • 2024-06-17. P.L. 2024, ch. 118 and ch. 128 added R.I. Gen. Laws § 5-34-50 (APRN restrictive covenants void, except sale of a practice up to 5 years). Source
  • 2019. Rhode Island Noncompetition Agreement Act enacted (P.L. 2019, ch. 204, ch. 264), now R.I. Gen. Laws ch. 28-59. Source

Primary sources

Secondary sources

Commentary and trackers used only to find the primary text. None of them is the statute, and none is cited for what the statute says.

Checker

What the statute says for these facts

Four facts. The answer leads with what the statute does at that pay, then names any change already enacted, then quotes the details with their citations.

The person who would sign

Several statutes treat contractors differently.

Other states on file