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Rhode Island Non-Solicitation Agreement

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Rhode Island Non-Solicitation Agreement

Updated April 19, 2024

A Rhode Island non-solicitation agreement is a contract between an employer and an employee that restricts the employee from soliciting business using connections or information gained during the period of employment with the company. The agreement is intended to protect the employer’s investments in building a business.

Is It Legally Enforceable in Rhode Island?

Yes. A non-solicitation agreement can be enforced if the limitations on both time and space are considered reasonable and if it does not adversely affect the public interest.[1]

Under state law, a licensed physician should not be restricted from practicing medicine or treating patients in any area at any time after termination of employment with a particular employer.[2]

Table of Contents

What Can a Non-Solicitation Agreement Prohibit?

Within the bounds of the law, a non-solicitation agreement in Rhode Island can restrict a former employee from recruiting, hiring, or seeking out the employer’s:

  • Former or current customers/clients
  • Former or current employees/personnel
  • Independent contractors
  • Other business associates

What Should a Non-Solicitation Agreement Include?

What should you include in a non-solicitation agreement.

In order to be enforceable in a Rhode Island court of law, a non-solicit covenant should include restrictive parameters on the following:

1. Time Period

While Rhode Island does not have a maximum cap on the duration of a non-solicitation agreement, it should be considered reasonable in the eyes of the court.

2. Geographical Space

The agreement should specify the location or area where the individual is bound to the restrictive terms. Typically, the geographical limitation is set to the city, county, or region where the employer is based.

3. Prohibited Activities

The restricted acts of solicitation stated in the agreement should not adversely affect public interest.

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Sources

  1. Durapin, Inc. v. American Products, Inc. (1989)
  2. RI Gen L § 5-37-33