The bill amends the Rhode Island Noncompetition Agreement Act by redefining key terms and establishing new provisions regarding noncompetition agreements. It introduces a definition for "annualized earnings," which encompasses various forms of compensation, including expected bonuses and commissions, and specifies that noncompetition agreements are void and unenforceable against employees unless their annualized earnings exceed $125,000.

The bill clarifies the scope of noncompetition agreements, allowing for their enforceability in the context of business sales, and creates a civil action for employers against employees who violate agreements related to the disclosure or wrongful utilization of trade secrets. It also includes provisions that protect trade secrets and customer information.

Additionally, the bill removes previous classifications of employees exempt from noncompetition agreements, such as low-wage employees and students in internships, while adding new provisions that specify the conditions under which noncompetition agreements may be enforceable. A severability clause is included to ensure that if any part of the chapter is deemed invalid, the remaining provisions will still be effective. The act is set to take effect on January 1, 2026.