Rhode Island non-compete law: the Noncompetition Agreement Act for recruiters

Rhode Island bans non-competes for some workers and leaves the rest to case law. Under the Rhode Island Noncompetition Agreement Act, R.I. Gen. Laws chapter 28-59, a noncompetition agreement is unenforceable against employees classified as nonexempt under the FLSA, students in internships or short-term jobs, workers 18 or younger, and low-wage employees earning no more than 250 percent of the federal poverty level, which works out to $39,900 for 2026 (our arithmetic). Separate statutes void practice restrictions for physicians and, since June 17, 2024, advanced practice registered nurses. As of October 2026, a 2026 bill to raise the floor to $125,000 (S 2160) had not become law.

For recruiters, that makes Rhode Island a classification question first: is the candidate exempt or nonexempt, a student or a minor, and what do they earn? Customer and employee non-solicits sit outside the Act, so they need their own question. The general screen is in non-compete questions for candidates, and the four kinds of non-solicit are in non-solicitation clauses for recruiters.

What does Rhode Island's Noncompetition Agreement Act say?

The Act was enacted on July 15, 2019 (P.L. 2019, ch. 204) and took effect six months after passage. Its operative section, R.I. Gen. Laws 28-59-3, says a noncompetition agreement "shall not be enforceable" against four groups:

1. an employee classified as nonexempt under the Fair Labor Standards Act;
2. undergraduate or graduate students in an internship or other short-term employment, paid or unpaid, while enrolled at an educational institution;
3. employees age 18 or younger; and
4. a low-wage employee.

The section adds that the rest of the contract survives, that a court may still impose a noncompetition restriction as a remedy for breach of another agreement or duty, and that employers may still use agreements not to share trade secrets after employment ends.

Where is the low-wage line in 2026?

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" under the HHS poverty guidelines. The 2026 HHS poverty guideline for one person in the 48 contiguous states is $15,960; 250 percent of that is $39,900 (our arithmetic).

Two details matter. "Earnings" in the Act means pay for the first 40 hours of work in a week, not counting hours paid at an overtime, Sunday or holiday rate, so overtime does not push someone over the line. And the threshold moves each year with the guidelines, so check the figure for the year in question with counsel. In practice, the nonexempt rule already covers most hourly workers; the low-wage rule matters for low-paid salaried exempt staff.

What does the Act not cover?

The definition of "noncompetition agreement" in section 28-59-2 expressly excludes, among others:

• covenants not to solicit or hire employees of the employer;
• covenants not to solicit or transact business with customers, clients or vendors of the employer;
• non-competes made in connection with the sale of a business, where the restricted person is a significant owner who receives significant consideration;
• nondisclosure and confidentiality agreements, invention assignment agreements and forfeiture agreements;
• non-competes made at separation where the employee is expressly given seven business days to rescind; and
• agreements not to reapply to the same employer.

So a nonexempt candidate's non-compete may be unenforceable while their customer non-solicit is not. For everyone outside the four protected groups, and for the excluded agreements, Rhode Island courts apply a common-law reasonableness test, described by the Rhode Island Supreme Court in Durapin, Inc. v. American Products, Inc. (1989), that asks whether the restriction protects a legitimate interest and is reasonable in scope.

What about physicians and advanced practice nurses?

Rhode Island voids practice restrictions for two professions outright:

Both statutes keep the rest of the contract in force. Registered nurses who are not APRNs, physician assistants and other clinicians are not covered by these two sections; their covenants fall under chapter 28-59 if they are in a protected group, and the common-law test otherwise.

Rhode Island non-compete rules at a glance

What should a recruiter ask a Rhode Island candidate?

Ask early in the phone screen, in the same words for everyone. Classification facts usually come from the job itself; do not ask about current or past pay to test the low-wage line, because Rhode Island restricts salary history questions (see the Rhode Island salary history ban guide).

RHODE ISLAND CANDIDATE — restrictive agreements

1. "Have you signed a non-compete, a customer or employee non-solicit,
    or a confidentiality agreement with your current or a past employer?"
2. "Is your current role paid hourly with overtime, or salaried and
    exempt?" (classification, not pay amount)
3. "Were you a student intern, or under 18, when you signed it?"
4. "How long does it last, and what area, customers or work does it
    cover?"
5. Health care roles: "Which Rhode Island license do you hold?"
6. "Was it signed when you left a job, or as part of selling a
    business?"
Always: "We don't want any confidential information, documents or
client or patient lists from your current employer."

• Do not tell a nonexempt candidate "you're free." Their customer or employee non-solicit and confidentiality duties may still apply.
• Do not ask what the candidate earns to work out the low-wage line. Pass the agreement to counsel.
• Do record "non-compete plus customer non-solicit, 12 months, nonexempt role, signed 2023" rather than an opinion.

What is the risk to the hiring company?

For protected groups, physicians and APRNs, the non-compete itself should not be enforceable, but the non-solicits and confidentiality duties usually survive and are where disputes land. For exempt employees above the line, a non-compete is judged under the common-law test, and the realistic outcome of a dispute is an injunction limiting certain customers or work for a period. Former employers sometimes also name the new employer, alleging interference with the contract or misuse of confidential information; that depends on what the new employer knew and did, which is for its counsel. Tell the client before final interviews and confirm at the offer call that the company wants no confidential information.

Is Rhode Island changing its non-compete law?

Repeatedly proposed, not yet changed. In 2024 the General Assembly passed 2024-H 8059 Substitute A, a much broader ban, but it did not become law; chapter 28-59 still shows only its 2019 history. In 2026, S 2160, introduced January 16, 2026 by Sen. LaMountain and referred to Senate Judiciary, would have extended the bar to employees generally, allowed reasonable covenants tied to the sale of a business or an equity interest, and declared a noncompetition agreement void unless the employee's annualized earnings exceed $125,000. Our check of the 2026 public laws published on the Legislature's site found none amending chapter 28-59, so the 2019 rules above still apply. Compare the neighboring Massachusetts rules and re-check the statute before relying on this summary in 2027.

Where does the federal FTC rule stand?

It does not apply. The FTC's Noncompete Rule page notes the August 20, 2024 court order; the Commission voted on September 5, 2025 to accede to the vacatur; and a February 12, 2026 notice removed it from the Code of Federal Regulations.

Staffing agencies and their own agreements

Most temporary and hourly staff an agency employs are nonexempt, so a non-compete in their contracts is unenforceable under 28-59-3; non-solicits are a separate question. For the rest of the Rhode Island picture, see hiring employees in Rhode Island, the Rhode Island staffing agency license guide and the Rhode Island recording consent guide.

A Rhode Island checklist

• Restrictive-agreement question asked of every candidate, in the same words.
• Exempt or nonexempt classification, student status and age noted for counsel; no pay questions.
• Non-solicits and confidentiality duties recorded separately from the non-compete.
• Health care roles: physician or APRN license noted; sale-of-practice covenants flagged.
• Low-wage figure re-checked against the current HHS guideline.
• No opinion on enforceability given; candidate pointed to their own lawyer.