Rhode Island Non-compete Agreement Template

Business entities can use the Rhode Island Non-Compete Agreement Form to apply specific restrictions upon the recipient of the company’s confidential information. This article will provide you with detailed instructions on how to compile an appropriate and effective sample non-competition agreement.

A non-compete contract is considered a wise precaution at the beginning of any working relationship. It protects any materials or data with a commercial value and provides significant leverage for companies competing on the market. The employer should be conscientious when hiring new staff members, especially key ones (like managers, lawyers, scientists, researchers, or administrative personnel). They can solicit the company’s clientele without its direct approval or permission. Such actions are considered illegal in the state and have long-term effects on the company’s reputation, status on the market, and overall well-being. And that is where non-competes come in handy.

Create a free high quality Rhode Island Non-compete Agreement online now!

Build Your Document

Answer a few simple questions to make your document in minutes

Save and Print

Save progress and finish on any device, download and print anytime

Sign and Use

Your valid, lawyer-approved document is ready

Create a free high quality Rhode Island Non-compete Agreement online now!

The Rhode Island Non-Compete Agreement helps the employer prevent any unlawful actions from the worker’s. However, the employee gets significant advantages too. The NCA affixes the worker’s rights and obligations in a written form to refer to them if unfairly accused.

The term “confidential information” means the following:

  • Technical and non-technical data concerning the company’s products and requiring the author’s right. This includes inventions, developmental plans, manufacturing methods and processes, know-how, experimental work, computer programs, and databases.
  • Customer lists, including the names, contact information, and buying habits.
  • Marketing and distribution methods
  • Analytical reports and statistics
  • Contact information of the company’s vendors, suppliers, or sponsors.

Please note that a non-compete contract is only enforceable if presented before the employment. The parties negotiate all relevant terms and conditions and reach a firm agreement before entering a professional relationship. You have to make sure no paragraph or phrase indicated in the contract reads ambivalent or has a hidden meaning, as it may (and will) be used against you in the future and lead to legal consequences. Additionally, the NCA terms should be adequate and fair for both sides and reflect an objective necessity rather than a subjective whim.

Rhode Island NCA Laws and Restrictions

The state of Rhode Island does not have any particular legislature regulating non-compete matters or behavior. Therefore, there is no standard written legal form accepted all over the state that the recipient (a person, business entity, partner, sponsor, employee, and others) could sign as a promise not to distribute confidential information.

The local government strongly disfavors non-compete agreements. These documents are only enforced if they imply reasonable limitations in terms of the validity period, work scope, and geographic area. However, there are certain limitations regarding some professions in the state.

For example, under the Rhode Island General Law (Section 5-37-33), any binding contract restricting the right of a licensed physician to practice medicine is automatically recognized void. This rule applies to all NCAs restraining one (or several) of the following rights:

  • To practice medicine and provide medical services and assistance in any chosen geographic region regardless of how much time has passed after the employment or collaboration termination.
  • To treat their patients (solicit clients), provide consultations, or establish a working relationship with any of the former or current patients and co-workers.
  • To establish (or seek to establish) a working relationship with the former employer’s clientele.

Please note that the afore-mentioned prohibitions from concluding NCAs with the licensed physicians or medical workers do not apply to purchase and sale transactions concerning the physician’s practice. In this case, particular non-compete agreements are acceptable, but those covenants can be enforceable for not longer than five years.

Other Rhode Island Forms

Interested in more Rhode Island documents? We offer free templates and straightforward personalization experience to anyone who wants less hassle when dealing with forms.

Published: Feb 11, 2021
Jennifer M. Settles
Jennifer M. Settles
Author & Attorney
With over 25 years of experience as a business and transactional attorney, Jennifer has mastered the craft of closing highly successful deals for her clients. Through her wide-ranging expertise in commercial contracts, real estate transactions, M&A and corporate law, Jennifer secures results that are second-to-none.