Effective as of January 15, 2020, Rhode Island enacted a ban that vastly prohibits employers from engaging in noncompete agreements with their employees. A “noncompete agreement” is a contract between an employer and employee, in which the employee agrees not to work for a competitor during or after their employment period.
Noncompete agreements are no longer enforceable for the following:
- Nonexempt employees, per the federal Fair Labor Standards Act
- Students — undergraduate and graduate
- Employees 18 years old or less
- Low-wage employees
Employers Next Steps
- If you are a Full-Service or Virtual HR client and would like our assistance with updating your policy, please email us.
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This content is provided with the understanding that HR Knowledge is not rendering legal advice. While every effort is made to provide current information, the law changes regularly and laws may vary depending on the state or municipality. The material is made available for informational purposes only and is not a substitute for legal advice or your professional judgment. You should review applicable laws in your jurisdiction and consult experienced counsel for legal advice. If you have any questions regarding this content, please contact HR Knowledge at 508.339.1300 or email us.