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.
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:
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.
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:
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.