What Is A Covenant Not To Compete In Rhode Island?
In Rhode Island, a covenant not to compete generally requires that, upon leaving the company, an employee agrees not to be employed by their employer's competitors. A covenant not to compete may also be called a "non-compete clause". An employee who signs a covenant not to compete may receive compensation for the agreement, or in some cases the agreement is a condition for their being hired.
When are Covenants not to Compete Unenforceable?
Foreseeing whether or not a judge will uphold a covenant not to compete is generally difficult. While the employer?s interests are important, Rhode Island courts place great importance on an individual?s freedom to pursue the employment they want. Accordingly, courts have only upheld those agreements that they consider reasonable under the circumstances. A court will usually hold non-compete clauses to be unreasonable if they involve unusually long periods of time or if they cover a geographic region surrounding East Providence that is excessively large.
Limitations on non-compete clauses must also be restricted to cover only competitors who are related in a rational way to the employer's industry. Finally, the covenant not to compete must have a legitimate business purpose which is behind the employer's motivation for requiring the agreement.
Do I Need an Attorney when Dealing with a Covenant not to Compete?
Before signing anything that may restrict your rights, you may want to hire a East Providence, Rhode Island attorney to review the contract. A lawyer can then negotiate to modify the covenant as needed, or may even draft a new one that is acceptable to both parties Employers can receive useful advice from an attorney should they decide to sue a worker for breaching a covenant, and employees who have signed such covenants can also benefit from a lawyer's counseling.
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Life in East Providence
East Providence, Rhode Island is a city of approximately 50,000 in Providence County. It is the 5th largest city in the state of Rhode Island.East Providence is considered a major suburb of Providence. Although it is a relatively small city by national standards, it is fairly large Rhode Island standards, and it has dozens of sites and buildings in the National Register of Historic Places. Because of its many historical sites, it is fairly popular among tourists visiting the New England region.
East Providence, Rhode Island also boasts a large number of parks for outdoor recreation.
It has been designated an "enterprise zone" by the state of Rhode Island. In an effort to promote economic growth in particular need of it, the state has a program to incentivize the establishment of businesses in designated enterprise zones, such as East Providence. For example, such as tax credits for hiring new employees, and continuing to increase the number of employees each year. Some permit fees are also waived, and the process of acquiring business permits is streamlined.
If you live in East Providence, and find yourself in need of legal representation, an East Providence, Rhode Island attorney can help.
