The bill amends the Rhode Island Noncompetition Agreement Act, specifically sections 28-59-2 and 28-59-3, and adds a new section 28-59-4. The amendments redefine certain terms and remove the classification of "low-wage employee," which previously referred to employees earning not more than 250% of the federal poverty level. The definition of "noncompetition agreement" is expanded to include agreements not to compete with a specific business or entity, and the bill specifies that such agreements are generally not enforceable against an employee. However, noncompetition agreements may be enforceable if they are reasonable and entered into in connection with the sale of a business entity or an equity interest in a business. The bill also clarifies that noncompetition agreements are void if they violate public policy.
Additionally, the bill introduces a new section allowing employers to bring a civil action against employees who violate agreements related to trade secrets, with potential remedies including injunctive relief, compensatory damages, punitive damages, attorneys' fees, and costs. The bill would take effect upon passage and aims to restrict the use of noncompetition agreements while providing protections for trade secrets and business interests during the sale of a business.