This is one of the biggest differences from California: Nevada enforces non-compete agreements — within limits — where California voids almost all of them. If you operate in both states, do not reuse the same template.
Nevada allows non-competes (NRS 613.195)
A noncompetition agreement is enforceable in Nevada only if it:
- Is supported by valuable consideration;
- Imposes no greater restraint than necessary to protect the employer;
- Does not impose undue hardship on the employee; and
- Is appropriate in relation to the consideration.
Hard limits
- It cannot bar serving a former customer or client — but only where all three statutory conditions hold: the employee did not solicit them, the customer or client voluntarily chose to leave and seek services from the former employee, and the employee is otherwise complying with the covenant's time, geographic, and scope limits (NRS 613.195(2)).
- It cannot apply to an employee paid solely on an hourly wage basis (exclusive of tips).
- It is unenforceable against an employee terminated in a reduction in force unless the employer pays the employee during the restricted period.
Courts must blue-pencil
If a covenant is overbroad, a Nevada court is required to revise it to be reasonable and enforce it as revised — rather than throwing it out entirely.
Practical drafting
Tie the restriction to a legitimate protectable interest, keep scope, geography, and duration reasonable, and provide genuine consideration. Because enforceability is fact-specific, have employment counsel draft and review your agreements.
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