Non-Solicitation Clauses in Nevada: Statutory Rules

Nevada's Statutory Framework

Nevada governs restrictive covenants under NRS 613.195, which was significantly amended in 2017. This statute applies to non-competition agreements broadly, including non-solicitation clauses, and provides a clear framework for enforceability.

Key Provisions of NRS 613.195

The statute establishes several important rules:

• Enforceability: Non-solicitation clauses are enforceable if they are supported by valuable consideration and do not impose a restraint that is greater than necessary to protect the employer's legitimate business interest
• Judicial revision: If a court finds a restrictive covenant is overbroad, it must revise the covenant to make it reasonable rather than voiding it entirely. This is a mandatory reformation provision, making Nevada one of the more employer-friendly states
• Terminated employees: If an employer terminates an employee (other than for cause), the employer must pay the employee during the restricted period to enforce the covenant. This is a significant employee protection
• Consideration: Valuable consideration is required; for new employees, the job typically qualifies

What Courts Evaluate

• Whether the clause protects a legitimate business interest such as customer relationships or trade secrets
• Whether the scope is limited to customers the employee actually served
• Whether the duration is reasonable (typically one to two years)
• Whether the restriction is the minimum necessary to protect the employer's interest

Red Flags

• Your employer fired you (not for cause) but is trying to enforce a non-solicitation clause without paying you during the restriction period
• The clause covers customers you never had contact with
• Duration exceeding two years
• No valuable consideration was exchanged
• Language that prevents you from accepting inbound business

When to Consult a Lawyer

Consider speaking with a Nevada employment attorney if you were terminated and your former employer is attempting to enforce a non-solicitation clause, if you are negotiating the terms of a restrictive covenant, or if you believe the clause in your agreement is unreasonably broad.

This article is for informational purposes only and does not constitute legal advice. Consult a licensed attorney for guidance specific to your situation.