Non-Compete Agreements in Nevada

Non-competition agreements in Nevada must be "limited to areas where the employer has "established customer contacts and good will.'" [1] In August 2018, the Nevada Supreme Court's held that even though an employer was a "nationwide business," it still had to prove that the geographical scope of the agreement was limited to areas in which the employer had established customer contacts and goodwill.The current Nevada non-compete statute, which became law on June 3, 2017, states that non-compete agreements may "not impose any restraint that is greater than is required for the protection of the employer" and may "not impose any undue hardship on the employee." [2]__________________________[1] See Landon Shore v. Global Experience Specialists, Inc., 134 Nev. Adv. Op. 61 (Aug. 2, 2018).[2] Cf. Hansen v. Edwards, 426 P.2d 792, 793 (Nev. 1967) (the "period of time during which the restraint is to last and the territory that is included are important factors to be considered" when determining whether a non-compete agreement "imposes … any greater restraint than is reasonably necessary to protect the business").