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. Key changes include the redefinition of terms such as "business entity," "employee," "employer," "forfeiture agreement," and "noncompetition agreement." Notably, the definition of "earnings" and the term "low-wage employee" are deleted from the law. The bill also expands the definition of a noncompetition agreement to include agreements that are prohibited by §28-59-3(a) and adds a new clause that exempts noncompetition agreements made by financial institutions subject to the Gramm-Leach-Bliley Act.

The enforceability of noncompetition agreements is addressed, with a general prohibition against enforcing such agreements against employees, except when reasonable and related to the sale of a business entity or equity interest. The bill also allows for the enforcement of agreements not to share trade secrets, customer lists, and future business plans. Additionally, a new section is introduced that permits employers to bring civil action against employees who violate agreements regarding trade secrets, with potential remedies including injunctive relief, compensatory and punitive damages, and the recovery of attorneys' fees and costs. The bill would take effect upon passage and also clarifies that noncompetition agreements in violation of subsection (a) are null and void as a violation of public policy.