Pay-threshold ban
Rhode Island Non-Compete Law (2026): Void below the pay floor
Rhode Island did not ban non-competes; it fenced off four groups of workers and left everyone else to the common law. A covenant cannot be enforced against anyone classified as nonexempt under the Fair Labor Standards Act, against undergraduate or graduate students in internships or short-term jobs, against anyone eighteen or younger, or against a low-wage employee whose average annual earnings sit at or below 250% of the federal poverty line, roughly $39,900 in 2026. Above that line and outside those categories, Rhode Island is a conventional reasonableness state with no duration cap and no notice rule.
The rule
How Rhode Island treats non-compete agreements
The nonexempt category, not the dollar figure, is the Act's real reach: an hourly worker earning $70,000 in overtime-eligible pay is protected while a salaried exempt worker earning $45,000 is not. Note also how narrowly the Act defines what it regulates. Non-solicitation clauses, NDAs, invention assignments, sale-of-business covenants, and separation agreements carrying a seven-business-day rescission right all fall outside the definition and stay enforceable, and voiding a covenant does not disturb the rest of the employment contract.
If you are an employer
Run the FLSA classification test before the salary test, because the nonexempt category sweeps in workers who earn well past $39,900 and is the more common reason a Rhode Island covenant fails.
If you are a worker
If you are paid overtime, still in school, under nineteen, or earning at or below about $39,900, the covenant is unenforceable against you regardless of what you signed.
| Classification | Categorical ban for low-wage, nonexempt, student, and minor workers |
|---|---|
| Pay threshold | $39,900 for 2026, derived from 250% of the federal poverty guideline for an individual as published by the U.S. Department of Health and Human Services. The figure moves each year with the guidelines; it was $39,125 for 2025. |
| Maximum term | No statutory ceiling. For workers outside the four protected groups, duration is judged under ordinary common-law reasonableness. |
| Notice or consideration | None. Rhode Island imposes no advance-notice or waiting-period obligation, which distinguishes it from Massachusetts and Oregon. |
| Primary statute | R.I. Gen. Laws §§ 28-59-1 to 28-59-3 (Rhode Island Noncompetition Agreement Act) |
Detail
What has changed, and what is still moving
Legislation 2024–2026
The Rhode Island Noncompetition Agreement Act was signed July 15, 2019 and effective January 2020. Nothing has amended it since; the only thing that changes year to year is the poverty-guideline arithmetic behind the low-wage figure.
Bills to watch
No significant restrictive bills pending. Broader prohibitions have been floated in recent sessions, including House and Senate versions in 2024, but none reached enactment.
Leading cases
Sparse. Chapter 28-59 has generated little published interpretation, so counsel work from the statutory text and from pre-Act reasonableness decisions for the workers the Act does not cover.
If you have one in hand
What can make a non-compete unenforceable in Rhode Island
- You earn below the threshold. $39,900 for 2026, derived from 250% of the federal poverty guideline for an individual as published by the U.S. Department of Health and Human Services. The figure moves each year with the guidelines; it was $39,125 for 2025.
- The scope is wider than the interest behind it. A restriction that reaches beyond the customers, trade secrets or goodwill the employer can actually point to is the most common reason a covenant fails in Rhode Island.
Whether any of these applies turns on the wording of your own agreement, your role and the case law your court follows. This page maps the statutory landscape; it does not replace advice on a specific contract.
FAQ
Rhode Island non-compete questions
Are non-compete agreements enforceable in Rhode Island?
Rhode Island did not ban non-competes; it fenced off four groups of workers and left everyone else to the common law. A covenant cannot be enforced against anyone classified as nonexempt under the Fair Labor Standards Act, against undergraduate or graduate students in internships or short-term jobs, against anyone eighteen or younger, or against a low-wage employee whose average annual earnings sit at or below 250% of the federal poverty line, roughly $39,900 in 2026. Above that line and outside those categories, Rhode Island is a conventional reasonableness state with no duration cap and no notice rule.
How long can a non-compete last in Rhode Island?
No statutory ceiling. For workers outside the four protected groups, duration is judged under ordinary common-law reasonableness.
Is there a minimum salary for non-competes in Rhode Island?
$39,900 for 2026, derived from 250% of the federal poverty guideline for an individual as published by the U.S. Department of Health and Human Services. The figure moves each year with the guidelines; it was $39,125 for 2025.
What notice or consideration does Rhode Island require?
None. Rhode Island imposes no advance-notice or waiting-period obligation, which distinguishes it from Massachusetts and Oregon.
Sources
How this entry was checked
- Primary source. R.I. Gen. Laws §§ 28-59-1 to 28-59-3 (Rhode Island Noncompetition Agreement Act) — the statutory text itself.
- Secondary sources consulted. R.I. Gen. Laws §§ 28-59-2 and 28-59-3 (Justia), Hinckley Allen Rhode Island noncompete legislation analysis, Epstein Becker Green 2026 threshold survey, Fair Competition Law low-wage threshold chart (January 21, 2026).
Check it against a third party
None of these is ours. If a figure here matters to a decision, verify it:
- Federal Trade Commission — non-compete hub
- Economic Innovation Group — State Noncompete Law Tracker
- Fair Competition Law (Beck Reed Riden) — 50-state legislation tracker
- GAO-23-103785 — Noncompete Agreements (May 2023)
This page is general legal information published by Jurizmo and is not legal advice, does not create an attorney-client relationship, and may not reflect amendments enacted after the review date above. Consult a licensed attorney in the relevant state before acting on any agreement.