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NON- COMPETITION CLAUSES IN NEVADA.
In Nevada, the law prohibits a person, association, company or corporation, or agent or officer thereof, from preventing any person who for any cause left or was discharged from their employ from obtaining employment elsewhere in this State. However, a person, association, company or corporation, or agent or officer thereof, was not prohibited from negotiating, executing and enforcing an agreement with an employee which, upon termination of employment, prohibited the former employee from pursuing a similar vocation in competition with or becoming employed by a competitor of the former employer. These agreements are know as "Non- Competition" covenants and are typically found in employment agreements. In 2017, Nevada modified its statues when dealing with these "Non- Competition" covenants wherein additional requirements governing non-competition covenants were added under the new laws. A non-competition covenant is now void and unenforceable unless the non-competition covenant:
In addition, and just as important a change, the new law further provides that a non-competition covenant may not restrict a former employee of an employer from providing service to a former customer or client if:
Finally, many courts over the year's have invalidated non-competition covenants for being too long in time and/or too broad in geographic scope. Nevada law now provides that if an employer brings an action to enforce a non-competition covenant and the court finds the covenant contains limitations that are not reasonable and impose a greater restraint than is necessary, the court shall revise the covenant to the extent necessary and enforce the covenant as revised. Such revisions must cause the limitations contained in the covenant as to time, geographical area and scope of activity to be restrained to be reasonable and to impose a restraint that is not greater than is necessary for the protection of the employer for whose benefit the restraint is imposed.
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