On June 13, 2024, the Rhode Island House passed, and the state Senate passed in concurrence, a bill to amend the Rhode Island Noncompetition Agreement Act (Senate Bill 2024-S 2436A/2024-H 8059A), which would ban and void existing and future post-employment noncompetition and customer nonsolicitation covenants with virtually all employees.
The existing Rhode Island Noncompetition Agreement Act, which went into effect in 2019, already prohibits noncompetition agreements with nonexempt and “low-wage employees,” undergraduate and graduate students and employees age 18 or younger. The new bill would significantly expand that ban to include all employees, except in limited circumstances, and render all prohibited noncompetition agreements “null and void” and a “violation of public policy.”
Read the full Alert on the Duane Morris LLP website.