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Bill > S2160


RI S2160

RI S2160
Prohibits noncompete agreements except for noncompete agreements between a seller and buyer of a business; creates civil action for an employer for the violation of an agreement by employee regarding disclosure or wrongful utilization of trade secrets.


summary

Introduced
01/16/2026
In Committee
01/16/2026
Crossed Over
Passed
Dead

Introduced Session

2026 Regular Session

Bill Summary

This act would prohibit noncompetition agreements except for noncompetition agreements between a seller and buyer of a business. This act would also create a civil action for an employer for the violation of an agreement by an employee regarding disclosure or wrongful utilization of trade secrets. This act would take effect on January 1, 2027.

AI Summary

This bill, effective January 1, 2027, generally prohibits noncompetition agreements, which are contracts where an employee agrees not to compete with their employer after their employment ends, with a key exception for agreements made between a seller and buyer of a business. The bill also introduces a new provision allowing employers to file a civil lawsuit against employees who violate agreements related to the disclosure or improper use of trade secrets, which are confidential business information like customer lists or future plans, and if successful, the employer can recover damages, legal fees, and other costs.

Committee Categories

Justice

Sponsors (1)

Last Action

Introduced, referred to Senate Judiciary (on 01/16/2026)

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