Non-compete agreements are increasingly common in employment contracts across Nevada, but many employees sign them without fully understanding their rights. Nevada law (NRS 613.195) governs the enforceability of these restrictive covenants, and the standards have evolved significantly in recent years.
For a non-compete to be enforceable in Nevada, it must be supported by valuable consideration -- meaning you must receive something of value in exchange for agreeing to the restriction. For new employees, the job itself typically suffices. For existing employees, courts generally require additional consideration such as a promotion, raise, or access to confidential information.
The restriction must also be reasonable in scope, duration, and geographic area. Nevada courts will not enforce overly broad non-competes. A restriction that prevents you from working in your entire industry across the state for five years, for example, would likely be found unreasonable.
Importantly, NRS 613.195 was amended in 2017 to add employee protections. If an employer terminates you (as opposed to you voluntarily leaving), the non-compete is void unless the employer pays you during the restricted period. This is a significant protection that many employees are unaware of.
If you are subject to a non-compete that you believe is unreasonable, you have options. An employment attorney can evaluate the agreement, negotiate with your former employer, or challenge the covenant in court. Courts have the power to modify overly broad agreements rather than simply voiding them entirely.
If you are considering a new job and are concerned about a prior non-compete, consult with counsel before making a move. The cost of a legal review is far less than the cost of defending against a breach of contract lawsuit.