Nevada amended its non-compete law significantly in 2017 (Nevada Revised Statutes section 613.195), adding new protections for employees — including a requirement that employers pay laid-off employees during any restriction period. Nevada courts can modify but not fully void overbroad non-competes, making careful review of the actual restrictions critical.
What is a Enforceability?
Under NRS 613.195, a non-compete is void unless it: is supported by adequate consideration; does not prohibit the employee from seeking other employment after termination; and is reasonable in scope. The 2017 amendments added: if an employee is terminated without cause or laid off, the employer must pay the employee their salary during the restricted period or the non-compete is void. Courts may not declare a non-compete void in its entirety if it can be made reasonable through modification — they must reform it.
Red flags to watch for
Under Nevada's 2017 amendments, if an employer terminates an employee without cause or lays them off, the employer must continue paying the employee during the non-compete period. Failure to include or fulfill this voids the restriction.
Nevada law specifically voids provisions that entirely prevent an employee from seeking employment. The restriction must be targeted, not a blanket employment ban.
Nevada courts will modify overbroad restrictions rather than void them, but the modification still applies. You cannot rely on a clause being too broad to be wholly unenforceable in Nevada.
Nevada requires adequate consideration. For mid-employment non-competes, continued employment alone may not be sufficient — a specific benefit is expected.
Penalties for breach beyond actual damages raise enforceability concerns in Nevada. Courts look closely at clauses that punish competition beyond compensating for actual harm.
Your legal rights
Under NRS 613.195, Nevada courts must reform unreasonable non-competes rather than void them entirely. However, the 2017 amendment provides meaningful protection: if you are terminated without cause or laid off and the employer does not pay your salary during the restriction period, the non-compete is void. Employees can raise invalidity as a defense in litigation.
Questions to ask before you sign
- 1Does the contract commit the employer to paying my salary if I am laid off during the restriction period?
- 2Is the geographic scope limited to the territory where I actually worked?
- 3Does the restriction prevent me from seeking any employment, or is it targeted?
- 4How long does the restriction last, and is it proportionate to the role?
- 5What consideration am I receiving beyond my initial offer of employment?
Disclaimer: This guide is for educational purposes only and does not constitute legal advice. Contract law varies by jurisdiction and individual circumstances. Always consult a qualified legal professional before making decisions based on this information.