Are Non-Competes Enforceable in Rhode Island?
Last updated: 2026-10-07 · Verified against the statutes 2026-10-07
Pay threshold / worker limits
Void for non-exempt, students, minors, pay at/under $39,900
Rhode Island bars enforcing non-competes against FLSA non-exempt employees, student interns and short-term student workers, employees aged 18 or younger, and low-wage employees whose average annual earnings are not more than 250% of the federal poverty level ($39,900 for 2026). Customer and employee non-solicits, confidentiality agreements and sale-of-business covenants are outside the law. Restrictive covenants for physicians and advanced practice registered nurses are void, including patient non-solicits.
Check a non-compete
Answer a few questions; the result cites the statute behind each point. Rules verified 2026-10-07. Saved only in your browser.
Thresholds are measured differently by state (salary, cash compensation, W-2 box 1).
Allowed only with strict limits
Rhode Island allows this non-compete only if it meets the statute's conditions — check each item below.
- Rhode Island: Void for non-exempt, students, minors, pay at/under $39,900. R.I. Gen. Laws 28-59-2
- Enter annual earnings — Rhode Island voids non-competes below $39,900. Average annual earnings of not more than 250% of the HHS poverty guideline for an individual: 2.5 x $15,960 = $39,900 for 2026 (earnings count only straight-time pay for the first 40 hours a week) R.I. Gen. Laws 28-59-2; HHS 2026 poverty guidelines
Other Rhode Island rules to check
- Non-solicitation clauses: Customer, client and vendor non-solicits and employee non-solicit or no-hire covenants are not 'noncompetition agreements' under the Act (but patient non-solicits are void for physicians and APRNs).
- If a court finds it too broad: Courts may narrow an overbroad covenant to what's reasonable.
General information, not legal advice. Enforceability also depends on the exact wording, the employer's legitimate interest and the facts; talk to an employment lawyer before relying on it.
Rhode Island non-compete rules
- Employee pay threshold
- $39,900 Average annual earnings of not more than 250% of the HHS poverty guideline for an individual: 2.5 x $15,960 = $39,900 for 2026 (earnings count only straight-time pay for the first 40 hours a week)
- Non-exempt employees
- Non-competes are void for FLSA non-exempt (overtime-eligible) employees.
- Independent contractors
- Not covered by the statute.
- Non-solicitation
- Customer, client and vendor non-solicits and employee non-solicit or no-hire covenants are not 'noncompetition agreements' under the Act (but patient non-solicits are void for physicians and APRNs).
- Overbroad covenants
- Courts may narrow an overbroad covenant to what's reasonable
Profession-specific rules
- VoidAny covenant restricting a physician's right to practice, including geographic limits and limits on treating or soliciting current patients, is void (sale of a practice excepted, up to 5 years). R.I. Gen. Laws 5-37-33
- VoidThe same rule applies to advanced practice registered nurses. (effective June 17, 2024) R.I. Gen. Laws 5-34-50
Recent and pending changes
- January 1, 2026: Low-wage cutoff becomes $39,900 under the 2026 HHS poverty guideline ($15,960 x 250%). HHS/ASPE 2026 poverty guidelines
- June 17, 2024: APRN restrictive covenants made void (S 2220, P.L. 2024 ch. 118 and 128). R.I. Gen. Laws 5-34-50
Pending: 2026 S 2160 (ban on non-competes except sale of a business) passed the Senate March 31, 2026 and was referred to House Labor April 1, 2026; no further action. A 2024 near-total ban (S 2436 Sub A) was vetoed June 26, 2024.
Federal law
There is no federal ban on employee non-competes. The FTC's 2024 Non-Compete Clause Rule (16 CFR Part 910), which would have voided most non-competes from September 4, 2024, never took effect: a Texas federal court set it aside nationwide on August 20, 2024 (Ryan LLC v. FTC). On September 5, 2025 the Commission voted 3-1 to drop its appeals and accept that ruling, and on February 12, 2026 it formally removed Part 910 from the Code of Federal Regulations. State law therefore decides whether a non-compete is enforceable.
Frequently asked questions
Are non-competes enforceable in Rhode Island?
Void for non-exempt, students, minors, pay at/under $39,900. Rhode Island bars enforcing non-competes against FLSA non-exempt employees, student interns and short-term student workers, employees aged 18 or younger, and low-wage employees whose average annual earnings are not more than 250% of the federal poverty level ($39,900 for 2026). Customer and employee non-solicits, confidentiality agreements and sale-of-business covenants are outside the law. Restrictive covenants for physicians and advanced practice registered nurses are void, including patient non-solicits.
Is there a salary threshold for non-competes in Rhode Island?
Yes — $39,900. Average annual earnings of not more than 250% of the HHS poverty guideline for an individual: 2.5 x $15,960 = $39,900 for 2026 (earnings count only straight-time pay for the first 40 hours a week)
Did the FTC ban non-competes in Rhode Island?
No. The FTC's 2024 rule never took effect — a federal court set it aside in August 2024, the FTC dropped its appeals in September 2025 and removed the rule from the Code of Federal Regulations in February 2026. State law controls, though the FTC still challenges some non-competes case by case.
Official Sources
Figures checked against these sources on 2026-10-07Other states
Same category (Pay threshold / worker limits): Colorado, District of Columbia, Illinois, Maine, Maryland, Massachusetts, Nevada, New Hampshire
Protect information instead with a confidentiality agreement (NDA generator), or hiring in Rhode Island? Use the offer letter generator.
Not legal advice. Enforceability depends on the agreement's wording and the facts; consult an employment attorney licensed in Rhode Island.