NRS 613.195
Noncompetition covenants: Limitations

  • enforceability
  • revision by court.

Mentioned in

How To Know if a Non-Compete Agreement Is Reasonable

LawDepot, October 17, 2023

“A Non-Compete Agreement restricts an employee from entering into competition with an employer after their employment period ends. Some Non-Compete Agreements can be unreasonable and limit your future job prospects.”
 
Bibliographic info

1.

A noncompetition covenant is void and unenforceable unless the noncompetition covenant:

(a)

Is supported by valuable consideration;

(b)

Does not impose any restraint that is greater than is required for the protection of the employer for whose benefit the restraint is imposed;

(c)

Does not impose any undue hardship on the employee; and

(d)

Imposes restrictions that are appropriate in relation to the valuable consideration supporting the noncompetition covenant.

2.

A noncompetition covenant may not restrict a former employee of an employer from providing service to a former customer or client if:

(a)

The former employee did not solicit the former customer or client;

(b)

The customer or client voluntarily chose to leave and seek services from the former employee; and

(c)

The former employee is otherwise complying with the limitations in the covenant as to time, geographical area and scope of activity to be restrained, other than any limitation on providing services to a former customer or client who seeks the services of the former employee without any contact instigated by the former employee.
Ê Any provision in a noncompetition covenant which violates the provisions of this subsection is void and unenforceable.

3.

An employer in this State who negotiates, executes or attempts to enforce a noncompetition covenant that is void and unenforceable under this section does not violate the provisions of NRS 613.200.

4.

If the termination of the employment of an employee is the result of a reduction of force, reorganization or similar restructuring of the employer, a noncompetition covenant is only enforceable during the period in which the employer is paying the employee’s salary, benefits or equivalent compensation, including, without limitation, severance pay.

5.

If an employer brings an action to enforce a noncompetition covenant and the court finds the covenant is supported by valuable consideration but contains limitations as to time, geographical area or scope of activity to be restrained that are not reasonable, impose a greater restraint than is necessary for the protection of the employer for whose benefit the restraint is imposed and impose undue hardship on the employee, 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.

6.

As used in this section:

(a)

“Employer” means every person having control or custody of any employment, place of employment or any employee.

(b)

“Noncompetition covenant” means an agreement between an employer and employee which, upon termination of the employment of the employee, prohibits the employee from pursuing a similar vocation in competition with or becoming employed by a competitor of the employer.

Source: Section 613.195 — Noncompetition covenants: Limitations; enforceability; revision by court., https://www.­leg.­state.­nv.­us/NRS/NRS-613.­html#NRS613Sec195.

613.080
Involuntary servitude prohibited 613.090
Obtaining employment by false or forged letter of recommendation or union card: Penalty. 613.100
Endangering life or property by breaking employment contract: Penalty. 613.110
Grafting by employee: Penalty. 613.120
Unlawful to demand or receive fee or commission as condition to giving or continuing employment to worker 613.125
Effect of employer’s failure to make agreed payments to health or welfare fund 613.130
Unlawful agreements concerning membership in labor organizations as condition of obtaining or continuing employment 613.132
Unlawful act of employer for failing or refusing to hire prospective employee based on screening test which indicates presence of marijuana 613.135
Unlawful acts of employer relating to social media account of employee or prospective employee. 613.140
Employer compelling or inducing employee to trade at particular store or board at particular boardinghouse: Penalty. 613.150
Transportation company compelling purchase of uniform from particular person or employer as condition of continuing employment unlawful 613.155
Notification to employer of employee’s sickness or injury and inability to work 613.160
Spotters: Right of employee to be confronted with accuser 613.170
Time checks: Discounts and deductions unlawful. 613.180
Hospital fees: Unlawful collection from employee. 613.190
Corrupt influencing of employee unlawful. 613.195
Noncompetition covenants: Limitations 613.200
Prevention of employment of person who has been discharged or who terminates employment unlawful 613.210
Blacklists unlawful 613.220
Assembling and cooperation of employees to secure increases in wages unrestricted. 613.222
Employer required to make reasonable accommodations for employee who is victim of domestic violence 613.223
Unlawful for employer to take certain actions against employee for reasons related to domestic violence. 613.225
Labor Commissioner to adopt regulations to establish certain procedures required by 42 U.S.C. § 607(f).
Last Updated

Jun. 24, 2021

§ 613.195’s source at nv​.us