Nevada High Court's Unyielding Approach To Noncompetes

Law360, New York (October 24, 2016, 10:51 AM EDT) -- Patrick H. Hicks

Kathryn B. Blakey In July, 2016, the Nevada Supreme Court in a 4-3 decision held that when a noncompete agreement extends beyond what is necessary to protect the employer’s interest, the agreement is wholly unenforceable and courts may not modify or “blue pencil” the contract to make it reasonable. Golden Road Motor Inn Inc. v. Islam, 132 Nev. Adv. Op. 49 (2016). This means that if any portion of a noncompete agreement is found to be unreasonable, the entire agreement is unenforceable and the court will not edit or narrow a noncompete agreement in any manner.

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