Nevada Non-Compete Agreements: What's Enforceable

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.

• It cannot bar serving a former customer or client the employee did not solicit.
• 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.

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.

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.