A non-competition agreement in Nevada is a contract that restricts an employee or seller from competing with a former employer or buyer for a defined time and within a defined geographic area. Under NRS 613.195, a Nevada non-compete is void and unenforceable unless it (1) is supported by valuable consideration, (2) does not impose any greater restraint than necessary to protect the employer’s legitimate business interests, (3) does not impose undue hardship on the employee, and (4) imposes restrictions appropriate to the consideration. Nevada also bans non-competes against employees paid solely on an hourly wage (AB 47, 2021).
What this practice area covers
Nevada and California non-compete framework
- Nevada (NRS 613.195) — enforceable if reasonable; courts MUST blue-pencil overbroad agreements
- California (Bus. & Prof. Code §16600) — non-competes void with very narrow exceptions
- Nevada hourly-worker ban (AB 47, 2021) — non-competes unenforceable against hourly employees
- Customer non-solicits and employee non-solicits — analyzed separately and often more enforceable than full non-competes
- Federal regulatory overlay — FTC non-compete rule status and ongoing federal litigation
- Enforcement-side cases — TROs, preliminary-injunction motions (see Preliminary Injunctions), parallel trade-secret claims
- Defense-side cases — overbreadth, lack of consideration, public-policy, §16600 bar, hourly-worker exemption
Approach
The first 72 hours decide the case
A key employee just left for a competitor — or you just left and your former employer is threatening you. Either way, the next 72 hours determine whether anyone is going to court for a TRO, what evidence gets preserved, and how the negotiating posture is set. Dane has handled the emergency-motion practice that defines the early days of these cases for over two decades.
The “blue pencil” doctrine. If a Nevada court finds a non-compete is too broad, NRS 613.195 requires the court to revise (blue pencil) the agreement to make it reasonable, rather than voiding it entirely. The Nevada Supreme Court has clarified that this is a duty, not an option. The implication: even an overbroad Nevada non-compete is dangerous to ignore, because the court will narrow it and enforce the narrowed version.
Cross-border NV/CA matters are common — Reno and Truckee, Carson City and the California Sierra. The same agreement can be enforceable on one side of the line and void on the other. Dane is admitted in both states and handles the choice-of-law and forum-selection questions that decide where the case actually gets fought.
Frequently Asked Questions
Nevada non-compete law — frequently asked questions
Can a non-compete be enforced in Nevada?+
Yes — Nevada non-competes are enforceable when they meet the four requirements of NRS 613.195: valuable consideration, no greater restraint than necessary to protect a legitimate business interest, no undue hardship on the employee, and restrictions appropriate to the consideration. Hourly-wage workers are exempt by statute (AB 47, 2021).
How do I legally get out of a non-compete in Nevada?+
Three main paths: (1) prove the agreement fails one or more NRS 613.195 requirements (overbroad scope, no consideration, undue hardship, hourly-worker exemption); (2) negotiate a modification or release with the former employer; (3) accept blue-penciling — Nevada courts must revise unreasonable agreements rather than void them, so the enforceable scope may be narrower than the agreement reads.
What is the ‘blue pencil’ rule in Nevada?+
The blue-pencil rule, codified in NRS 613.195, requires Nevada courts to revise unreasonable non-compete agreements to make them reasonable, rather than voiding them outright. The Nevada Supreme Court has held this is a mandatory judicial duty.
Are non-competes legal for hourly workers in Nevada?+
No. Since AB 47 took effect in 2021, Nevada non-competes are not enforceable against employees paid solely on an hourly wage. The hourly-wage carve-out continues to be litigated at the edges (mixed-pay arrangements, contractors, exempt-status disputes).
How long does a non-compete typically last in Nevada?+
Reasonable durations are usually 6 months to 2 years, with one year being the most commonly enforced. Multi-year non-competes are scrutinized closely and often blue-penciled down. The duration must match the consideration and the legitimate business interest being protected.
What’s the difference between a non-compete and a non-solicitation agreement?+
A non-compete restricts where and for whom you can work. A non-solicitation agreement restricts whom you can solicit (customers, employees, or both). Non-solicitation is generally easier to enforce because it’s less restrictive, and Nevada courts apply the same reasonableness tests less stringently.
What about California — are non-competes enforceable there?+
Almost never. California Business and Professions Code §16600 voids non-competes by statute, with very narrow exceptions for sale of a business, dissolution of a partnership, and dissolution of an LLC. California has also enacted notice and damages remedies for employees subjected to invalid non-competes.
Are non-competes still legal under federal law?+
As of 2026, the FTC’s non-compete rule has been the subject of extensive federal litigation. Status varies — check current law before relying on it. State law (NRS 613.195 in Nevada, §16600 in California) currently controls most enforcement decisions in Reno-area cases.