Rhode Island non-compete law

Pay figure in the law

A low-wage employee is one whose average annual earnings are not more than 250% of the federal poverty level for individuals, as set by the U.S. Department of Health and Human Services guidelines.

Separate rules for professions

physicians

Statutes and official texts quoted

R.I. Gen. Laws § 28-59-3(a); R.I. Gen. Laws § 28-59-3(a)(2)-(4); R.I. Gen. Laws § 28-59-2(7); R.I. Gen. Laws § 28-59-2(2); R.I. Gen. Laws § 28-59-2(8); R.I. Gen. Laws § 28-59-2(8)(iii); R.I. Gen. Laws § 28-59-3(c); R.I. Gen. Laws § 28-59-3(b); R.I. Gen. Laws § 5-37-33(a); R.I. Gen. Laws § 5-37-33(c)

Is a non-compete allowed?

Rhode Island makes noncompetition agreements unenforceable against four listed groups of workers: FLSA nonexempt employees, student interns or short-term student workers, employees 18 or younger, and low-wage employees.

“A noncompetition agreement shall not be enforceable against the following types of workers: (1) An employee who is classified as nonexempt under the Fair Labor Standards Act, 29 U.S.C. §§ 201-219;”
R.I. Gen. Laws § 28-59-3(a)

Pay thresholds

A low-wage employee is one whose average annual earnings are not more than 250% of the federal poverty level for individuals, as set by the U.S. Department of Health and Human Services guidelines.

““Low-wage employee” means an employee whose average annual earnings, as defined in subsection (2), are not more than two hundred fifty percent (250%) of the federal poverty level for individuals as established by the United States Department of Health and Human Services federal poverty guidelines.”
R.I. Gen. Laws § 28-59-2(7)

For this test, earnings means pay for the first 40 hours of work in a week, not counting hours paid at an overtime, Sunday or holiday rate.

““Earnings” means wages or compensation paid to an employee in the first forty (40) hours of work in a given week, not inclusive of hours paid at an overtime, Sunday, or holiday rate.”
R.I. Gen. Laws § 28-59-2(2)

Health care and other professions

Any contract restriction on a licensed physician's right to practice medicine is void and unenforceable as to that restriction; the rest of the contract remains in effect.

“Any contract or agreement that creates or establishes the terms of a partnership, employment, or any other form of professional relationship with a physician licensed to practice medicine pursuant to this chapter that includes any restriction of the right of such physician to practice medicine shall be void and unenforceable with respect to said restriction”
R.I. Gen. Laws § 5-37-33(a)

The physician covenant prohibition does not apply to the purchase and sale of a physician practice if the covenant lasts no more than five years.

“the prohibition on physician covenants shall not apply in connection with the purchase and sale of a physician practice, provided the restrictive covenant and/or noncompete covenant is for a period of a time of no more than five (5) years.”
R.I. Gen. Laws § 5-37-33(c)

Who is covered

The covered groups also include students in internships or short-term employment while enrolled, employees age 18 or younger, and low-wage employees.

“(3) Employees age eighteen (18) or younger; or (4) A low-wage employee.”
R.I. Gen. Laws § 28-59-3(a)(2)-(4)

Exceptions

The statute's definition of noncompetition agreement excludes, among others, employee and customer non-solicitation covenants, certain sale-of-business covenants by significant owners, nondisclosure agreements, and separation agreements with a 7-business-day rescission period.

“Noncompetition agreements include forfeiture for competition agreements, but do not include: (i) Covenants not to solicit or hire employees of the employer; (ii) Covenants not to solicit or transact business with customers, clients, or vendors of the employer;”
R.I. Gen. Laws § 28-59-2(8)

Noncompetes made in connection with the sale of a business by a significant owner who receives significant consideration are excluded from the statute's definition.

“when the party restricted by the noncompetition agreement is a significant owner of, or member or partner in, the business entity who will receive significant consideration or benefit from the sale or disposal;”
R.I. Gen. Laws § 28-59-2(8)(iii)

Employers may still enter agreements with employees not to share trade secret information, including after employment ends.

“Nothing in this section shall preclude an employer from entering into an agreement with an employee not to share any information, including after the employee is no longer employed by the employer, regarding the employer or the employment that is a trade secret.”
R.I. Gen. Laws § 28-59-3(c)

If it is challenged

The rest of a contract containing an unenforceable noncompetition agreement is not voided by this section.

“This section does not render void or unenforceable the remainder of a contract or agreement containing the unenforceable noncompetition agreement”
R.I. Gen. Laws § 28-59-3(b)

Federal rules

On September 5, 2025, the FTC moved to dismiss its appeals in Ryan, LLC v. FTC and Properties of the Villages v. FTC and to accede to vacatur of the Non-Compete Clause Rule. FTC press release, Sept. 5, 2025

The FTC's final rule removes the Non-Compete Rule (16 CFR part 910) from the Code of Federal Regulations. 91 Fed. Reg. (Feb. 12, 2026), FR Doc. 2026-02866

Before you sign, or before you assume you are bound

1. Find every restrictive clause: non-compete, non-solicitation, no-hire and confidentiality are separate promises with separate rules.
2. Note how long each lasts and what area or customers it covers.
3. Check which state’s law the agreement picks and where disputes must be heard.
4. Compare your pay and your job with the Rhode Island rules above.

Check your state with the non-compete checker.

Common questions

Are non-competes enforceable in Rhode Island?

Rhode Island makes noncompetition agreements unenforceable against four listed groups of workers: FLSA nonexempt employees, student interns or short-term student workers, employees 18 or younger, and low-wage employees. (R.I. Gen. Laws § 28-59-3(a)).

Is there a salary threshold for non-competes in Rhode Island?

A low-wage employee is one whose average annual earnings are not more than 250% of the federal poverty level for individuals, as set by the U.S. Department of Health and Human Services guidelines. (R.I. Gen. Laws § 28-59-2(7)).

Does Rhode Island have special non-compete rules for health care workers or other professions?

Any contract restriction on a licensed physician's right to practice medicine is void and unenforceable as to that restriction; the rest of the contract remains in effect. (R.I. Gen. Laws § 5-37-33(a)).