Rhode Island has established meaningful salary-based protections against non-compete agreements, though its attempts to ban them more broadly have been blocked by gubernatorial veto. Here is where things stand in 2026.
Rhode Island's 2026 Salary Threshold
Rhode Island law prohibits non-compete agreements for "low-wage employees" — defined as workers earning at or below 250% of the federal poverty level. For 2026, this threshold is approximately $39,900 per year. This threshold adjusts annually based on the federal poverty level.
✅ If you earn approximately $39,900 or less per year, your non-compete agreement is void and unenforceable under Rhode Island law. This protects a significant portion of the Rhode Island workforce — particularly hourly workers, retail employees, service workers, and other lower-wage employees — from non-compete enforcement.
Categories Exempt from Non-Competes in Rhode Island
Rhode Island's law also exempts additional categories of workers from non-compete agreements entirely, regardless of salary:
- Non-exempt employees under the Fair Labor Standards Act (overtime-eligible hourly workers)
- Undergraduate and graduate students working as interns or in entry-level positions
- Employees who are 18 years old or younger
- Employees terminated without cause or laid off
⚠️ If you were laid off or terminated without cause in Rhode Island, your employer may not be able to enforce your non-compete against you. This is an important protection — particularly for workers caught in company-wide reductions in force.
The Vetoed Ban — Legislative History
Rhode Island's legislature passed a bill that would have banned most non-compete agreements entirely. However, the governor vetoed the bill, meaning the broader ban did not become law. The current salary threshold and exempt categories framework remains in place. Rhode Island's legislature may attempt to pass similar legislation in future sessions.
For Higher-Earning Employees
For employees above the salary threshold and outside the exempt categories, Rhode Island courts apply a common law reasonableness standard. Non-competes must:
- Protect a legitimate employer interest
- Be reasonable in duration and geographic scope
- Be supported by adequate consideration
- Not impose undue hardship on the employee
Rhode Island courts will evaluate the specific facts of the case when determining enforceability. Courts can modify overbroad agreements rather than voiding them entirely.
Notice Requirements in Rhode Island
Rhode Island requires that employers provide non-compete agreements to prospective employees before a formal offer of employment is accepted, giving workers time to review the agreement and seek legal advice if needed.