Nevada takes a middle-ground approach to non-compete agreements — neither banning them outright like California nor broadly enforcing them like Florida. Two key factors determine your situation: how you are paid and whether you were terminated with or without cause.
Nevada's Hourly Worker Prohibition
Under Nevada Revised Statute 613.195, amended effective October 1, 2021, employers are prohibited from requiring employees paid solely on an hourly wage basis to sign a non-compete agreement. This is a hard prohibition — not a factor to be weighed, but an absolute bar.
✅ If you are paid on an hourly basis, your non-compete is void and unenforceable under Nevada law — regardless of what the agreement says or how much you earn per hour. This protection applies to all hourly workers in Nevada.
Salaried Employees — The Reasonableness Standard
For salaried employees, Nevada courts apply a reasonableness standard. A non-compete must:
- Be supported by valuable consideration
- Be reasonably necessary to protect the employer's legitimate business interests
- Be reasonable in duration and geographic scope
- Not impose undue hardship on the employee
- Not harm the public interest
Termination Without Cause — Important Nevada Protection
Nevada law also restricts non-compete enforcement when an employee is laid off or terminated without cause. If an employer terminates an employee without cause, the employer may not enforce the non-compete unless the employer continues to pay the employee's salary and benefits during the restricted period.
⚠️ If you were laid off or terminated without cause and your employer is NOT continuing to pay your salary, they may have lost the right to enforce your non-compete under Nevada law. This is a significant protection that many employees are unaware of.
Nevada's Blue Pencil Rule
Nevada courts will modify an overbroad non-compete rather than voiding it entirely. A court can reduce the duration, narrow the geographic scope, or limit the restricted activities and then enforce the modified version. This means even a poorly drafted agreement may be partially enforced.
What Are Legitimate Business Interests in Nevada?
Nevada courts recognize trade secrets, confidential customer information, and specialized training as legitimate interests worth protecting through a non-compete. General competitive concerns — simply not wanting you to work for a competitor — are not sufficient on their own.
Healthcare Non-Competes in Nevada
Nevada has faced ongoing legislative debate about healthcare non-competes. The Nevada Legislature passed a bill in 2023 that would have prohibited non-competes between hospitals and medical providers, but it was vetoed by Governor Lombardo. As of 2026, healthcare employers in Nevada can still use non-competes subject to the general reasonableness standard.