agreements - The Rhode Island Directory

Can non compete agreements be enforced in Rhode Island?

Samantha Boss2 years ago2 years ago09 mins

Non-compete agreements, which restrict employees from working for competitors after leaving a company, are subject to specific regulations in Rhode Island. To determine their enforceability, Rhode Island courts consider the agreement’s duration, geographic scope, and its reasonable necessity to protect the employer’s legitimate business interests. However, courts also weigh the potential harm to the employee’s ability to earn a livelihood. It is advisable for employers and employees to seek legal counsel to fully understand the enforceability of non-compete agreements in Rhode Island.

Can non-compete agreements be legally enforced in Rhode Island?

Samantha Boss2 years ago2 years ago09 mins

Non-compete agreements, often used by employers to restrict employees from working for competitors, are subject to specific regulations in Rhode Island. As per state law, non-compete agreements are generally enforceable if they are deemed reasonable in duration, geographical scope, and protect a legitimate business interest. However, Rhode Island courts apply a strict scrutiny standard when evaluating these agreements. To be enforceable, they must pass a three-pronged test, ensuring they are narrowly tailored, do not unreasonably restrict the employee’s ability to earn a livelihood, and do not harm the public’s interest.