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Threshold regime

Non-compete enforceability in Rhode Island

Rhode Island Noncompetition Agreement Act voids non-competes for non-exempt FLSA workers, students, minors, and 'low-wage employees' (≤ 250% FPL).

What this means for you

Rhode Island is a threshold state: a non-compete is void below a statutory income floor and only potentially enforceable above it — and even above the floor it must still be reasonable in time, geography, and scope.

Doctrine

Blue-pencil. Courts strike specific over-broad terms (duration, geography, scope) while preserving the enforceable core.

Salary / wage threshold

$39,125

2026 value

250% FPL for individual. 2026 FPL ≈ $15,650 → 250% ≈ $39,125. ESTIMATE — re-verify against HHS 2026 FPL guidelines.

Industry-specific rules

  • healthcare

    Total ban on physician non-competes; only sale-of-practice exception (≤ 5 years).

Federal context

The FTC's 2024 federal non-compete ban was vacated nationwide in Ryan v. FTC and removed from the Code of Federal Regulations in February 2026. There is no federal ban in force — so Rhode Island's state law controls. Read the federal status.

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