The Nevada Supreme Court passed a decision last year that may have caused your agreement to become invalid. In the case of Golden Road Motor Inn, v. Islam, the court held that non-compete agreements cannot extend further than what is reasonable and cannot create hardship on the employee. The biggest change from the ruling is the decision that courts may not “blue line” (“blue pencil”) contracts, meaning to change or delete terms to make the contract legal.
So, what does this mean for local Nevada businesses? If your non-compete doesn’t comply with what is reasonable then it may be considered invalid. Since the court may not change the terms to make the contract legal, your business’s interests may currently be at risk.
If you have a current non-compete agreement in Nevada, consider having it reviewed by a trusted Nevada contract lawyer.
