Nevada non-compete law

Pay figure in the law

None found in the statutes we read

Separate rules for professions

None found in the statutes we read

Statutes and official texts quoted

NRS 613.195(1); NRS 613.195(3); NRS 613.195(2); NRS 613.195(5); NRS 613.195(6); NRS 613.195(7); NRS 613.195(8)(b); NRS 613.200(1); NRS 613.200(2); NRS 613.200(4); NRS 613.195(4)

Is a non-compete allowed?

Nevada allows noncompetition covenants only if they meet statutory conditions; a covenant that does not meet them is void and unenforceable.

“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.”
NRS 613.195(1)

An employer that negotiates, signs or tries to enforce a noncompetition covenant that is void under NRS 613.195 does not violate NRS 613.200.

“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.”
NRS 613.195(4)

Who is covered

A noncompetition covenant may not apply to an employee paid solely on an hourly wage basis, not counting tips or gratuities.

“A noncompetition covenant may not apply to an employee who is paid solely on an hourly wage basis, exclusive of any tips or gratuities.”
NRS 613.195(3)

Key terms

Nevada defines a noncompetition covenant as an agreement that, when employment ends, bars the employee from pursuing a similar vocation in competition with the employer or from working for a competitor.

“"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.”
NRS 613.195(8)(b)

Exceptions

Nevada still allows agreements barring a former employee from disclosing trade secrets, business methods, customer lists or other confidential information, if supported by valuable consideration and reasonable in scope and duration.

“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.”
NRS 613.200(4)

Limits on length and area

A noncompetition covenant may not stop a former employee from serving a former customer or client who left voluntarily and was not solicited, if the former employee otherwise complies with the covenant's limits.

“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;”
NRS 613.195(2)

If employment ends because of a reduction in force, reorganization or similar restructuring, the covenant is enforceable only while the employer keeps paying the employee's salary, benefits or equivalent compensation.

“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.”
NRS 613.195(5)

If it is challenged

If a court finds a covenant is supported by valuable consideration but its limits are unreasonable, the court must revise the covenant and enforce it as revised.

“the court shall revise the covenant to the extent necessary and enforce the covenant as revised.”
NRS 613.195(6)

If a court finds a covenant applies to an hourly employee, or that the employer restricted a former employee from serving former customers as described in the statute, the court must award the employee reasonable attorney's fees and costs.

“the court shall award the employee reasonable attorney’s fees and costs.”
NRS 613.195(7)

Apart from what NRS 613.195 allows, willfully acting to stop a former employee from getting work elsewhere in Nevada is a gross misdemeanor punishable by a fine of up to $5,000.

“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.”
NRS 613.200(1)

The Nevada Labor Commissioner may also impose an administrative penalty of up to $5,000 for each such violation.

“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.”
NRS 613.200(2)

Federal rules

On September 5, 2025, the FTC moved to dismiss its appeals in Ryan, LLC v. FTC and Properties of the Villages v. FTC and to accede to vacatur of the Non-Compete Clause Rule. FTC press release, Sept. 5, 2025

The FTC's final rule removes the Non-Compete Rule (16 CFR part 910) from the Code of Federal Regulations. 91 Fed. Reg. (Feb. 12, 2026), FR Doc. 2026-02866

Before you sign, or before you assume you are bound

1. Find every restrictive clause: non-compete, non-solicitation, no-hire and confidentiality are separate promises with separate rules.
2. Note how long each lasts and what area or customers it covers.
3. Check which state’s law the agreement picks and where disputes must be heard.
4. Compare your pay and your job with the Nevada rules above.

Check your state with the non-compete checker.

Common questions

Are non-competes enforceable in Nevada?

Nevada allows noncompetition covenants only if they meet statutory conditions; a covenant that does not meet them is void and unenforceable. (NRS 613.195(1)).