The bill amends the Rhode Island Noncompetition Agreement Act by introducing new definitions and provisions regarding noncompetition agreements. Key insertions include a detailed definition of "annualized earnings," which encompasses various forms of compensation, and the introduction of a threshold for enforceability, stating that a noncompetition agreement is void unless the employee's annualized earnings exceed $125,000. Additionally, the bill clarifies that noncompetition agreements may be enforceable if they are reasonable in scope, time-frame, and application, and entered into as part of an agreement to sell a business entity or an equity interest in a business.

The bill also establishes that employers can bring a civil action against employees who violate agreements related to trade secrets, allowing for potential injunctive relief, compensatory damages, punitive damages, attorneys' fees, and costs.

Several existing definitions and restrictions are removed, including the previous classification of low-wage employees and specific exemptions for certain types of workers, such as nonexempt employees under the Fair Labor Standards Act and students in internships. The changes aim to streamline the enforceability of noncompetition agreements while providing protections for employers regarding trade secrets. The act is set to take effect on January 1, 2027.