Rhode Island Non-Compete Laws (2026): Are Non-Competes Enforceable?

Rhode Island does not ban non-compete agreements outright. The Rhode Island Noncompetition Agreement Act, R.I. Gen. Laws 28-59-3, makes them unenforceable against four groups of workers: nonexempt employees, certain students, employees 18 or younger and low-wage employees. For everyone else, a non-compete is enforced only if it is reasonable under the Rhode Island Supreme Court's decision in Durapin, Inc. v. American Products, Inc., 559 A.2d 1051 (R.I. 1989).

Physicians and advanced practice registered nurses have their own, stronger statutes. For how other states handle these agreements, see our non-compete laws by state guide.

Information last verified on 2026-10-08. This article has not been reviewed by a licensed lawyer.

Jurisdiction scope: This article covers Rhode Island law on employee non-compete agreements: the Noncompetition Agreement Act (R.I. Gen. Laws chapter 28-59), the court-made reasonableness test, and the physician and nurse statutes, with a short note on the federal FTC rule. It does not cover trade-secret claims (see Rhode Island trade secret laws) or severance pay (see Rhode Island severance pay laws).

Are non-competes enforceable in Rhode Island?

It depends on who signed it. The 2019 Act (P.L. 2019, ch. 204 and ch. 264) does not ban non-competes for the whole workforce. It lists the workers they cannot be enforced against. Section 28-59-3(a) reads, in part:

"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; (2) Undergraduate or graduate students who participate in an internship or otherwise enter a short-term employment relationship with an employer, whether paid or unpaid, while enrolled at an educational institution; (3) Employees age eighteen (18) or younger; or (4) A low-wage employee." R.I. Gen. Laws 28-59-3(a)

The student protection covers paid and unpaid internships and short-term jobs held while enrolled at an educational institution. A non-compete signed by an exempt adult employee who earns above the low-wage line is not covered by these protections. It is judged under the common-law test below.

The whole chapter is three sections. It does not set a maximum length or territory, require advance notice, give a right to consult a lawyer before signing, or require garden-leave pay during the restricted period.

Who counts as a low-wage employee?

Section 28-59-2 defines a low-wage employee as one "whose average annual earnings ... 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."

"Earnings" in the definition means pay for the first 40 hours of work in a week. It leaves out hours paid at overtime, Sunday or holiday rates. The statute does not print a dollar figure. The line moves whenever HHS publishes a new poverty guideline, so check the current HHS figure for one person and multiply it by 2.5 to see where the line sits.

Two other groups are protected regardless of pay: nonexempt (overtime-eligible) employees under the federal Fair Labor Standards Act and employees 18 or younger.

What the Act does not cover

The Act's definition of a "noncompetition agreement" expressly includes a "forfeiture for competition agreement," a clause that imposes adverse financial consequences on a former employee who goes on to compete, so such a clause is unenforceable against the four protected groups too (R.I. Gen. Laws 28-59-2(6) and (8)).

The definition leaves out several other kinds of clauses, so the four-group protection does not apply to them (R.I. Gen. Laws 28-59-2). Excluded clauses include:

• agreements not to solicit or hire the employer's employees;
• agreements not to solicit or transact business with the employer's customers, clients or vendors;
• non-competes made in the sale of a business when the restricted person is a significant owner, member or partner who receives significant consideration;
• agreements that originate outside an employment relationship;
• forfeiture agreements that impose a financial consequence when employment ends whether or not you compete;
• nondisclosure and confidentiality agreements;
• invention assignment agreements;
• agreements not to reapply for employment; and
• non-competes made when employment ends, if the employee is "expressly granted seven (7) business days to rescind acceptance."

That last point matters for anyone offered a separation package. A non-compete inside a severance agreement that gives you seven business days to back out is outside the Act's protection even for a low-wage or nonexempt worker. Our Rhode Island severance pay laws page covers the rest of the package.

The Act also preserves agreements not to share trade secrets, including after the job ends (R.I. Gen. Laws 28-59-3(c)).

The reasonableness test for everyone else

For workers outside the four protected groups, the rule comes from Durapin. The Rhode Island Supreme Court held that non-competes are not void on their own terms but are not favored. A court enforces one as written only if it is reasonable and no broader than apparently necessary to protect the employer.

The employer, as the party seeking enforcement, has to show three things under Durapin:

• the covenant is ancillary to a valid transaction or relationship, such as employment;
• it is supported by adequate consideration; and
• it protects a legitimate interest.

Rhode Island has no statutory cap on how long or how far a covenant can reach. Duration, territory and the activity restricted are weighed in each case against what the employer actually needs to protect.

What a court does with an overbroad non-compete

Rhode Island follows partial enforcement. Durapin held that a court may modify an unreasonable covenant and enforce it to the extent reasonably necessary, whether or not the clause is divisible. The exception is when "the circumstances indicate bad faith or deliberate overreaching on the part of the promisee," meaning the employer.

The Act adds two points (R.I. Gen. Laws 28-59-3(b)). A non-compete that is unenforceable against a protected worker does not void the rest of the contract. And a court may still order a worker not to compete as a remedy for breaking a different agreement, or a statutory or common-law duty.

Does it matter if you were fired or quit?

We found no Rhode Island statute or court holding that treats a non-compete differently depending on whether the employee was fired or quit. The Act does not address it, and Durapin does not draw that line.

Physicians and nurse practitioners

Rhode Island voids non-competes for two health professions, whatever their pay.

Physicians. Under R.I. Gen. Laws 5-37-33 (P.L. 2016, ch. 449 and ch. 450), a contract creating an employment, partnership or other professional relationship with a licensed physician "shall be void and unenforceable with respect to said restriction" if it restricts the right to practice medicine. That covers a geographic restriction for any time after the relationship ends, a ban on treating, advising or establishing a relationship with the employer's current patients, and a ban on soliciting current patients. The rest of the contract survives. The rule does not apply to the purchase and sale of a physician practice, if the covenant lasts no more than five years.

Advanced practice registered nurses. R.I. Gen. Laws 5-34-50 applies the same structure to APRNs licensed under section 5-34-45, including the five-year limit for the sale of a practice. It took effect June 17, 2024 (P.L. 2024, ch. 118 and ch. 128).

Customer non-solicits, NDAs and trade secrets

Because customer and employee non-solicits and NDAs are carved out of the Act's definition, R.I. Gen. Laws 28-59-3 does not void them, even for a low-wage worker. Whether a particular one is enforceable is a question for the courts under the general reasonableness rules.

A non-compete restricts working for a competitor. Trade-secret law protects specific confidential information whether or not you signed a non-compete; see Rhode Island trade secret laws.

Penalties, choice of law and enforcement

Chapter 28-59 contains no penalty for an employer that asks a protected worker to sign a non-compete, no award of attorney fees to the employee, and no duty to notify workers. Disputes go to court.

The chapter also says nothing about a clause choosing another state's law or courts, and we found no other Rhode Island statute on that question. If your agreement names another state's law, a lawyer can explain how a Rhode Island court is likely to approach it.

Recent and pending changes

Rhode Island lawmakers have tried in each of the last three sessions to widen the protections. None of those bills has become law.

• 2026 S 2160 (pending, not law). Would replace the four protected groups with a general rule that non-competes are unenforceable against employees, void them unless the worker's annualized earnings exceed $125,000, allow reasonable non-competes tied to the sale of a business or equity interest, remove the current carve-outs for customer non-solicits and separation-agreement non-competes, and add a civil action for employers against employees who disclose or misuse trade secrets. It would take effect January 1, 2027 if enacted. The Senate passed it March 31, 2026, and it was referred to the House Labor Committee April 1, 2026. The General Assembly's status report showed no House action as of October 8, 2026.
• 2025 S 0302 Sub A (did not become law). A similar bill passed the Senate June 18, 2025, with no House action recorded.
• 2024 H 8059 Sub A and S 2436 Sub A (vetoed). These would have made non-competes void except between the buyer and seller of a business. Both passed and were vetoed June 26, 2024. No override is recorded.
• 2024 APRN law (enacted). Now R.I. Gen. Laws 5-34-50, effective June 17, 2024.

The federal FTC rule

The FTC's nationwide non-compete rule never took effect. A federal court in Texas set it aside on August 20, 2024 (Ryan, LLC v. FTC, No. 3:24-CV-00986-E, N.D. Tex.), the FTC voted on September 5, 2025 to dismiss its appeals, and the rule was removed from the Code of Federal Regulations effective February 12, 2026. The FTC still acts case by case; on June 22, 2026 it approved a final order requiring a pest-control company to stop enforcing non-competes. See FTC non-compete ban struck down and the non-compete laws by state guide for the details.

What this means if you signed one

Start with the four questions the Act asks: are you nonexempt, 18 or younger, a student intern, or at or under the low-wage line? If none applies, the Durapin reasonableness factors decide the outcome, and a court can narrow rather than discard an overbroad clause. For the separate question of when an employer can end the job, see Rhode Island at-will employment laws. A lawyer licensed in Rhode Island can review a specific agreement.

Related

• Non-compete laws by state
• Rhode Island trade secret laws
• Rhode Island severance pay laws
• Rhode Island at-will employment laws
• FTC non-compete ban struck down

Disclaimer: This article provides general legal information about Rhode Island non-compete law, including the Noncompetition Agreement Act (R.I. Gen. Laws chapter 28-59), the physician and APRN statutes (R.I. Gen. Laws 5-37-33 and 5-34-50) and Durapin, Inc. v. American Products, Inc., not legal advice. The information was last verified on 2026-10-08. Rhode Island non-compete disputes are decided by the courts; for advice about a specific agreement, contact a legal aid office or a lawyer licensed in Rhode Island.

Last updated: 2026-10-08.

Frequently Asked Questions

Are non-competes legal in Rhode Island?

Yes, for most workers, if reasonable under Durapin, Inc. v. American Products, Inc. (R.I. 1989). R.I. Gen. Laws 28-59-3 makes them unenforceable against nonexempt employees, certain student interns, employees 18 or younger and low-wage employees.

What is the salary threshold for a Rhode Island non-compete?

There is no fixed dollar figure. A low-wage employee, who is protected, earns on average no more than 250% of the HHS federal poverty level for individuals (R.I. Gen. Laws 28-59-2), counting pay for the first 40 hours a week.

Can a Rhode Island court rewrite an overbroad non-compete?

Yes. Under Durapin, a court may modify an unreasonable covenant and enforce it to the extent reasonably necessary, unless the employer acted in bad faith or deliberately overreached.

Are physician non-competes enforceable in Rhode Island?

No. R.I. Gen. Laws 5-37-33 voids restrictions on a physician's right to practice, including geographic limits and bans on treating or soliciting current patients, except in the sale of a practice for up to five years.

Can nurse practitioners be bound by a non-compete in Rhode Island?

Not as to practice restrictions. Since June 17, 2024, R.I. Gen. Laws 5-34-50 voids them for advanced practice registered nurses, with the same five-year sale-of-practice exception as physicians.

Does the Rhode Island law protect me from a customer non-solicit?

No. Customer and employee non-solicits are excluded from the Act's definition of a noncompetition agreement (R.I. Gen. Laws 28-59-2), so 28-59-3 does not void them even for low-wage workers.

Did Rhode Island ban non-competes in 2024?

No. H 8059 and S 2436, which would have voided most non-competes, were vetoed on June 26, 2024. The 2026 version, S 2160, passed the Senate but had no House action as of October 8, 2026.

Does the FTC non-compete ban apply in Rhode Island?

No. A federal court set the FTC rule aside on August 20, 2024, and it was removed from the Code of Federal Regulations effective February 12, 2026. Rhode Island law governs.