The Rhode Island non-compete & non-solicitation agreement is a contract that prohibits employees from entering into business relationships which create competition for their employer. Unwarranted competition exists if an employee works for a similar business while employed or solicits customers, other employees, or independent contractors associated with their employer. The agreement has also been designed to protect employers’ business secrets following the expiration of an individual’s employment by imposing a period in which the employee is restricted from engaging in competing in a similar business activity. However, for the restriction to be enforced by the courts, the employer must show that limitations are reasonable and that the individual was offered satisfactory consideration (e.g., pay increase, promotion) when the agreement was made.
Note: According to § 5-37-33, non-compete agreements and non-solicitation agreements are not allowed in physician employment contracts.
Laws – No statutes.
Non-Compete Limit – No statutory defined limit.
Non-Solicitation Limit – No statutory defined limit.