2023 -- H 5370

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LC001308

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2023

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A N   A C T

RELATING TO LABOR AND LABOR RELATIONS -- RHODE ISLAND

NONCOMPETITION AGREEMENT ACT

     Introduced By: Representatives Cotter, Casimiro, Potter, Morales, Shanley, Carson,
Fogarty, Cortvriend, McGaw, and Bennett

     Date Introduced: February 03, 2023

     Referred To: House Labor

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 28-59-3 of the General Laws in Chapter 28-59 entitled "Rhode Island

Noncompetition Agreement Act" is hereby amended to read as follows:

     28-59-3. Enforceability.

     (a) A noncompetition agreement shall not be enforceable against the following types of

workers:

     (1) An employee who is classified as nonexempt under the Fair Labor Standards Act, 29

U.S.C. §§ 201-219;

     (2) Undergraduate or graduate students who participate in an internship or otherwise enter

a short-term employment relationship with an employer, whether paid or unpaid, while enrolled at

an educational institution;

     (3) Employees age eighteen (18) or younger; or

     (4) A low-wage employee.

     (b) This section does not render void or unenforceable the remainder of a contract or

agreement containing the unenforceable noncompetition agreement, nor does it preclude the

imposition of a noncompetition restriction by a court, whether through preliminary or permanent

injunctive relief or otherwise, as a remedy for a breach of another agreement or of a statutory or

common law duty.

     (c) Nothing in this section shall preclude an employer from entering into an agreement with

an employee not to share any information, including after the employee is no longer employed by

the employer, regarding the employer or the employment that is a trade secret.

     (d) Except as provided in this chapter, every contract or contractual provision by which an

employee is restrained from engaging in a lawful profession, trade, or business of any kind is to

that extent void.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO LABOR AND LABOR RELATIONS -- RHODE ISLAND

NONCOMPETITION AGREEMENT ACT

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     This act would void all portions of noncompetition agreements in this state, which restrain

an employee from engaging in a lawful profession, trade or business of any kind.

     This act would take effect upon passage.

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LC001308

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