Are Non Compete Agreements Enforceable In Nevada
April 8, 2021

While non-competitive agreements are generally applicable in Nevada2, Nevada Supreme Court precedents have been a little confusing with respect to the practice of blue pencil, that is, revising these agreements to make them enforceable. The practice began in the pioneering case of Hansen v. Edwards3, where the Nevada Supreme Court found that the geographic scope and duration of a competition alliance were inappropriate. But instead of treating the agreement as totally unenforceable, the Nevada Supreme Court amended and reduced the geographic scope and duration of a 100-mile radius around Reno, Nevada, with an unlimited duration to the city limits of Reno with a duration of one year.4 Similarly, in Von Ellis v. 1979. which prohibited a medical worker from practising his specialty of “orthopaedic surgery” because none of the clinic`s physicians was an orthopaedic specialist.5 The court, however, amended the restriction to prohibit the physician from participating in the broader “general practice of medicine” to protect the clinic`s “good will.” to effectively change sections deemed inappropriate. At Landon Shore v. Global Experience Specialists, Inc., an employee entered into a non-compete agreement prohibiting him from cooperating with a competitor with similar functions in the United States for a period of 12 months after the expiry of his employment. However, a few months after the end of his employment, the employee held a similar position with a California competitor. The former employer filed a complaint and filed a referral action against the employee who worked for the competitor.

Employers should verify compliance with Nevada law in their existing non-compete agreements. 2. A non-compete clause cannot prohibit a former employee from providing services to a former customer or customer if: Under the new law, a non-compete agreement must be entered into in Nevada: If you are starting a job in a new company, you may be asked to sign an employment contract. In many cases, employers will include in their contracts a non-compete clause that is controversial in Nevada and many other states. If you have signed a non-compete clause, it is important to recognize that under Nevada law, it may be unenforceable and enforceable, and you should discuss your rights with a Las Vegas labour law specialist who understands the Non-Competition Act. To put it again, if you otherwise comply with the non-competition clause, you will probably be allowed to take care of your employer`s clients if they voluntarily use your services without asking for them. Of course, this part is only for former clients of the employer while the employee is working on it, not for other potential clients who are in a restricted area and who can voluntarily address the employee. Non-competition bans can still prevent you from serving these people. Already where most of these cases are decided, nrS 613.195 shows – at the district court level. For example, although NRS 613.195 was enacted in 2017, a Nevada District Court judge recently ruled that the statute could still apply to non-competitive agreements executed before the statute came into effect.

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