In Rhode Island, non-compete agreements are legal but sharply restricted. Under the Rhode Island Noncompetition Agreement Act (R.I. Gen. Laws § 28-59-1 et seq.), which took effect on January 15, 2020, a non-compete is void and unenforceable for several whole categories of workers: employees classified as non-exempt (hourly, overtime-eligible) under the federal Fair Labor Standards Act; undergraduate or graduate students working an internship or other short-term job; anyone age 18 or younger; and "low-wage employees," defined by statute as workers whose average annual earnings are 250% or less of the federal poverty level for an individual. If you fall into one of these groups, an employer in Rhode Island cannot lawfully hold you to a clause that bars you from working for a competitor after you leave.
For everyone else, Rhode Island has no flat ban. A non-compete may be enforced only if it is reasonable under long-standing Rhode Island common law — meaning it protects a legitimate business interest and is no broader than necessary in duration, geography, and scope of work. This article explains how those rules work, who is protected, and what to do if you are asked to sign one or are being threatened with enforcement.
Rhode Island's statutory bans: who cannot be held to a non-compete
The 2020 Act draws a bright line. A non-competition agreement is not enforceable against, and may not even be entered into with, the following workers:
Non-exempt employees under the FLSA — generally hourly workers who are entitled to overtime. This covers a large share of Rhode Island's workforce.
Students — undergraduates or graduate students performing an internship or otherwise entering a short-term employment relationship while enrolled in a full-time or part-time program.
Workers age 18 or younger.
Low-wage employees — those whose earnings are 250% or less of the federal poverty guideline for a single individual. Because the federal poverty level is updated every year, this dollar threshold moves; confirm the current figure before assuming you are above or below it.
If you are in any of these groups, a non-compete signed in Rhode Island has no legal force against you, even if you signed it.
What the law does NOT restrict
The Act targets one specific tool: agreements that stop you from working for a competitor or in a competing business. It expressly leaves several other restrictive covenants alone, and these can still bind even protected workers:
Non-solicitation agreements — promises not to poach the employer's customers or employees.
Non-disclosure and confidentiality agreements — promises not to reveal trade secrets or proprietary information.
Non-competes tied to the sale of a business, where the seller (an owner) agrees not to compete.
Agreements not to reapply for a job after employment ends, and certain agreements made on separation in exchange for severance, depending on the circumstances.
So even if your non-compete itself is unenforceable, read any related confidentiality or non-solicitation language carefully — those clauses operate under different rules.
The reasonableness test for everyone else
If you are not in a protected category — for example, a salaried, exempt professional earning well above the low-wage threshold — your non-compete can be enforced, but only to the extent a Rhode Island court finds it reasonable. Rhode Island courts weigh three things:
Duration: Is the time period no longer than needed to protect the employer? Courts are skeptical of long restrictions; shorter terms (often a year or less) are far more likely to survive.
Geographic scope: Is the restricted territory limited to where the employer actually does business? A nationwide ban for a locally focused job is usually unreasonable.
Legitimate business interest: Does the clause protect something real — trade secrets, confidential information, or customer goodwill — rather than just shielding the employer from ordinary competition?
Rhode Island courts have, in some cases, "blue-penciled" overly broad agreements — narrowing rather than voiding them — but this is discretionary and not guaranteed. An employer cannot count on a court rewriting an unreasonable clause to make it enforceable.
The federal picture: no national ban right now
It is worth knowing the federal baseline, because it is often misunderstood. In 2024 the Federal Trade Commission issued a rule that would have banned most non-competes nationwide, but a federal court in Texas set that rule aside in August 2024, and it never took effect. As a result, there is currently no federal ban on non-competes, and your protections come from state law. That makes Rhode Island's statute the controlling source for most workers here. (Separately, federal labor agencies have taken positions critical of overbroad non-competes, but those do not override state enforcement.)
For comparison on wage law, the federal floor under the FLSA is a $7.25 hourly minimum wage and overtime after 40 hours in a week. Rhode Island sets a higher minimum — $15.00 per hour as of 2026 — though that figure can change with new legislation, so verify the current rate with the state before relying on it. Your FLSA exemption status (exempt vs. non-exempt) is what determines whether the non-compete ban applies to you, which is why wage classification and non-compete rights are linked.
What to do if you are asked to sign or are being threatened
Take these steps to protect yourself:
Do not sign on the spot. You are entitled to read the agreement and seek advice. If you are a new hire, ask for the document in advance.
Figure out your category. Are you hourly/non-exempt, a student, under 19, or earning at or below 250% of the federal poverty level? If so, a non-compete is unenforceable against you under Rhode Island law.
Keep copies of everything — the agreement, offer letter, pay records, and any emails threatening enforcement.
Do not assume a threat is valid. Employers sometimes send "cease and desist" letters relying on clauses that would not hold up in Rhode Island. A scary letter is not a court order.
Consult an employment attorney before changing jobs if a non-compete is in play. Rhode Island Legal Services and the Rhode Island Bar Association lawyer referral service can help you find counsel.
Where to verify the rules
The statute itself is the Rhode Island Noncompetition Agreement Act, R.I. Gen. Laws Chapter 28-59, available through the General Assembly's website. For wage, hour, and worker-classification questions — including whether you are exempt or non-exempt — the state agency is the Rhode Island Department of Labor and Training (DLT). The DLT can point you to current wage figures and labor standards, and the Rhode Island Attorney General's office handles certain unfair-practice complaints. Because dollar thresholds (the poverty-level figure and the minimum wage) change over time, always confirm the current numbers with these official sources before acting.
Official Rhode Island Sources
This page is based on Rhode Island employment law. Rules and figures change — verify the current details directly with the official Rhode Island sources below. This is general legal information, not legal advice.
Federal law and local ordinances may also apply. Federal laws like the Fair Labor Standards Act set a national floor, and your city or county may add protections (such as a higher local minimum wage or paid sick leave). Check both alongside Rhode Island state law.
Frequently asked questions
Are non-competes completely banned in Rhode Island?
No. Rhode Island bans them only for certain workers: non-exempt (hourly) employees, students in internships or short-term jobs, anyone 18 or younger, and low-wage employees earning 250% or less of the federal poverty level. For other workers, a non-compete can be enforced if it is reasonable in time, geography, and scope.
I'm an hourly worker in Rhode Island. Can my employer enforce a non-compete?
Generally no. If you are classified as non-exempt under the FLSA (typically meaning you are overtime-eligible), the Rhode Island Noncompetition Agreement Act makes a non-compete unenforceable against you, even if you signed one. Note that confidentiality and non-solicitation clauses are treated separately and may still apply.
What counts as a 'low-wage employee' under Rhode Island's non-compete law?
The statute defines it as a worker whose average annual earnings are 250% or less of the federal poverty guideline for an individual. Because that poverty figure is updated yearly, the dollar cutoff changes each year, so check the current federal poverty level to see where you stand.
My old employer sent a letter threatening to sue over my non-compete. What should I do?
Don't panic and don't assume the threat is valid. Many Rhode Island non-competes are unenforceable because of the worker's category or because the clause is unreasonably broad. Keep all documents and consult an employment attorney before responding or changing your plans.
Did the FTC ban non-competes nationwide?
The FTC issued a rule in 2024 that would have banned most non-competes, but a federal court set it aside before it took effect, so there is no federal ban in force. In Rhode Island, your rights come from state law, primarily the Rhode Island Noncompetition Agreement Act.
This article is general legal information, not legal advice, and may not reflect the most current law or the law in your jurisdiction. Laws vary by state and change over time. For advice about your specific situation, consult a licensed attorney.
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