Sections 613.195. Noncompetition covenants: limitations; enforceability; revision by court

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, and an employer may not bring an action to 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.

Any provision in a noncompetition covenant which violates the provisions of this subsection is void and unenforceable.

3. A noncompetition covenant may not apply to an employee who is paid solely on an hourly wage basis, exclusive of any tips or gratuities.

4. 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.

5. 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.

6. If an employer brings an action to enforce a noncompetition covenant or an employee brings an action to
challenge 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, imposes a greater restraint than is necessary for the protection of the employer for whose benefit the restraint is imposed or imposes 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.

7. If an employer brings an action to enforce a noncompetition covenant or an employee brings an action to challenge a noncompetition covenant and the court finds that the noncompetition covenant applies to an employee described in subsection 3 or that the employer has restricted or attempted to restrict a former employee in the manner described in subsection 2, the court shall award the employee reasonable attorney’s fees and costs. Nothing in this subsection shall be construed as prohibiting a court from otherwise awarding attorney’s fees to a prevailing party pursuant to NRS 18.010.

8. 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.

See https://www.leg.state.nv.us/NRS/NRS-613.html#NRS613Sec195

Section 613.200. Prevention of employment of person who has been discharged or who terminates employment unlawful; criminal and administrative penalties; exception

1. Except as otherwise provided in this section and NRS 613.195, any person, association, company or corporation within this State, or any agent or officer on behalf of the person, association, company or corporation, who willfully does anything intended to prevent any person who for any cause left or was discharged from his, her or its employ from obtaining employment elsewhere in this State is guilty of a gross misdemeanor and shall be punished by a fine of not more than $5,000.

2. In addition to any other remedy or penalty, the Labor Commissioner may impose against each culpable party an administrative penalty of not more than $5,000 for each such violation.

3. If a fine or an administrative penalty is imposed pursuant to this section, the costs of the proceeding, including investigative costs and attorney’s fees, may be recovered by the Labor Commissioner.

4. The provisions of this section do not prohibit a person, association, company, corporation, agent or officer from negotiating, executing and enforcing an agreement with an employee of the person, association, company or corporation which, upon termination of the employment, prohibits the employee from disclosing any trade secrets, business methods, lists of customers, secret formulas or processes or confidential information learned or obtained during the course of his or her employment with the person, association, company or corporation if the agreement is supported by valuable consideration and is otherwise reasonable in its scope and duration.

See https://www.leg.state.nv.us/NRS/NRS-613.html#NRS613Sec195

Section 613.210. Black lists unlawful; recommendations and statements to be provided employee by employer

1. As used in this section, “employee” means every person who has entered upon service or employment of an employer, and the employment shall be deemed to commence from the date of the entry or performance of any service. Any contract of employment, rule, regulation or device to the contrary is void.

2. A person shall not black-list or cause to be black-listed or publish the name of or cause to be published the name of any employee, mechanic or laborer discharged by that person with the intent to prevent that employee, mechanic or laborer from engaging in or securing similar or other employment from any other person.

3. If any officer or agent of any person blacklists or causes to be blacklisted or publishes the name of or causes to be published the name of any employee, mechanic or laborer discharged by that person with the intent to prevent that employee, mechanic or laborer from engaging in or securing similar or other employment from any other person in any manner conspires or contrives, by correspondence or otherwise, to prevent that discharged employee from procuring employment, the officer or agent, as applicable, is guilty of a misdemeanor.

4. Subsections 2 and 3 do not prohibit any person from giving in writing, at the time the employee leaves or is discharged from the service of the employer, a truthful statement of the reason for such leaving of the service or discharge of that employee, nor do subsections 2 and 3 prevent any employer from giving any employee or former employee any statement with reference to any meritorious services which the employee may have rendered to that employer. The employer shall supply statements as provided in this subsection upon demand from the employee, but no such statement is required unless the employee has been in service for a period of not less than 60 days. Only one such statement may be issued to that employee.

See https://www.leg.state.nv.us/NRS/NRS-613.html