Following in the footsteps of its neighbors Maine, Massachusetts, and New Hampshire, Rhode Island recently enacted legislation that restricts the use of non-competition agreements with certain types of employees. The Rhode Island Noncompetition Agreement Act, which becomes effective on January 15, 2020, prohibits non-competes without regard to geographic location and duration for the following types of employees:
- Non-exempt employees under the FLSA;
- Undergraduate or graduate students participating in an internship or short-term employment;
- Employees aged 18 or younger; and
- Low-wage workers (defined as earning 250% or less of the federal poverty level ($31,225 per year under current data).