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| 4 | 4 | | |
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| 5 | 5 | | 2023 -- H 5370 |
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| 6 | 6 | | ======== |
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| 7 | 7 | | LC001308 |
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| 8 | 8 | | ======== |
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| 9 | 9 | | S TATE OF RHODE IS LAND |
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| 10 | 10 | | IN GENERAL ASSEMBLY |
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| 11 | 11 | | JANUARY SESSION, A.D. 2023 |
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| 12 | 12 | | ____________ |
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| 13 | 13 | | |
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| 14 | 14 | | A N A C T |
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| 15 | 15 | | RELATING TO LABOR AND LABOR RELATIONS -- RHODE ISLAND |
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| 16 | 16 | | NONCOMPETITION AGREE MENT ACT |
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| 17 | 17 | | Introduced By: Representatives Cotter, Casimiro, Potter, Morales, Shanley, Carson, |
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| 18 | 18 | | Fogarty, Cortvriend, McGaw, and Bennett |
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| 19 | 19 | | Date Introduced: February 03, 2023 |
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| 20 | 20 | | Referred To: House Labor |
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| 21 | 21 | | |
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| 22 | 22 | | |
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| 23 | 23 | | It is enacted by the General Assembly as follows: |
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| 24 | 24 | | SECTION 1. Section 28-59-3 of the General Laws in Chapter 28-59 entitled "Rhode Island 1 |
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| 25 | 25 | | Noncompetition Agreement Act" is hereby amended to read as follows: 2 |
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| 26 | 26 | | 28-59-3. Enforceability. 3 |
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| 27 | 27 | | (a) A noncompetition agreement shall not be enforceable against the following types of 4 |
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| 28 | 28 | | workers: 5 |
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| 29 | 29 | | (1) An employee who is classified as nonexempt under the Fair Labor Standards Act, 29 6 |
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| 30 | 30 | | U.S.C. ยงยง 201-219; 7 |
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| 31 | 31 | | (2) Undergraduate or graduate students who participate in an internship or otherwise enter 8 |
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| 32 | 32 | | a short-term employment relationship with an employer, whether paid or unpaid, while enrolled at 9 |
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| 33 | 33 | | an educational institution; 10 |
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| 34 | 34 | | (3) Employees age eighteen (18) or younger; or 11 |
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| 35 | 35 | | (4) A low-wage employee. 12 |
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| 36 | 36 | | (b) This section does not render void or unenforceable the remainder of a contract or 13 |
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| 37 | 37 | | agreement containing the unenforceable noncompetition agreement, nor does it preclude the 14 |
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| 38 | 38 | | imposition of a noncompetition restriction by a court, whether through preliminary or permanent 15 |
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| 39 | 39 | | injunctive relief or otherwise, as a remedy for a breach of another agreement or of a statutory or 16 |
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| 40 | 40 | | common law duty. 17 |
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| 41 | 41 | | (c) Nothing in this section shall preclude an employer from entering into an agreement with 18 |
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| 42 | 42 | | |
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| 43 | 43 | | |
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| 44 | 44 | | LC001308 - Page 2 of 3 |
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| 45 | 45 | | an employee not to share any information, including after the employee is no longer employed by 1 |
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| 46 | 46 | | the employer, regarding the employer or the employment that is a trade secret. 2 |
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| 47 | 47 | | (d) Except as provided in this chapter, every contract or contractual provision by which an 3 |
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| 48 | 48 | | employee is restrained from engaging in a lawful profession, trade, or business of any kind is to 4 |
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| 49 | 49 | | that extent void. 5 |
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| 50 | 50 | | SECTION 2. This act shall take effect upon passage. 6 |
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| 51 | 51 | | ======== |
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| 52 | 52 | | LC001308 |
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| 53 | 53 | | ======== |
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| 54 | 54 | | |
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| 55 | 55 | | |
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| 56 | 56 | | LC001308 - Page 3 of 3 |
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| 57 | 57 | | EXPLANATION |
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| 58 | 58 | | BY THE LEGISLATIVE COUNCIL |
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| 59 | 59 | | OF |
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| 60 | 60 | | A N A C T |
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| 61 | 61 | | RELATING TO LABOR AND LABOR RELATIONS -- RHODE ISLAND |
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| 62 | 62 | | NONCOMPETITION AGREE MENT ACT |
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| 63 | 63 | | *** |
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| 64 | 64 | | This act would void all portions of noncompetition agreements in this state, which restrain 1 |
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| 65 | 65 | | an employee from engaging in a lawful profession, trade or business of any kind. 2 |
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| 66 | 66 | | This act would take effect upon passage. 3 |
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| 67 | 67 | | ======== |
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| 68 | 68 | | LC001308 |
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| 69 | 69 | | ======== |
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