Effective January 15, 2020, a new law known as the Rhode Island Noncompetition Agreement Act protects trade secrets, confidential information, customer lists, goodwill, and special training. All non-competition agreements must be reasonable in nature, including reasonable in their geographic area and time restriction.
However, there are multiple exemptions. Non-compete agreements cannot be used with:
A non-compete agreement must be reasonable in its time and geographic restrictions. However, given its size, business owners should consult with a law firm to determine a reasonable geographic reach in New England. This helps ensure that public policy is not violated if a former employee must be sued.
Protect your Rhode Island business by also using a Rhode Island non-disclosure agreement form. Download a Rhode Island non-disclosure agreement form now!
To write a Rhode Island non-compete agreement, first review the Rhode Island Noncompetition Agreement Act and its restrictions. Include the following clauses:
Both the employer and the employee must sign and print their names. The signatures should be dated. Finally, each party should keep a copy of the completed agreement.