In 2016, I wrote about the Nevada Supreme Court's refusal to "blue pencil" non-compete agreements so as to make theme enforceable. Golden Road Motor Inn, Inc. v. Islam, 132 Nev. 476, 488, 376 P.3d 151, 159 (2016). The...more
The Nevada Supreme Court recently addressed the question of whether lower courts may blue-pencil an otherwise unenforceable noncompetition agreement pursuant to a provision in the agreement that allows for court modification...more
Many practitioners in Nevada had been operating under the assumption that the Nevada Supreme Court’s 2016 opinion in Golden Road Motor Inn, Inc. v. Islam, 132 Nev. 476, 376 P.3d 151 (2016) automatically rendered void and...more
On December 31, 2020, the Nevada Supreme Court issued an opinion addressing and clarifying several issues relating to the power of the court to reform or modify an unreasonable noncompetition agreement often referred to as...more
The Nevada Supreme Court held that courts may change or “blue-pencil” an unreasonably restrictive non-compete agreement to make it enforceable if the agreement contains a provision allowing the modification of unenforceable...more
The Nevada Legislature and Nevada Supreme Court have not always seen eye-to-eye in the interpretation of noncompetition covenants. Historically, the two bodies have parried back and forth in trying to decide where Nevada will...more
Employment law is a dynamic practice area in which new law develops each year. Last year was no exception. This article, originally published in Nevada Lawyer by Matthew L. Durham and Chad D. Olsen, discusses notable...more
...In an industry so focused on the development and promotion of personalities and distinguishing its information and entertainment from the competition, talent non-competition agreements can be critical. But, as the saying...more
Given California's hostility to non-compete agreements, it is easy to lose sight of the fact that other states don't have the same attitude. In neighboring Nevada, the courts will look to whether the restraint on competition...more
Although rules against broad geographic restrictions in non-compete agreements may be outmoded or “hopelessly antiquated” in this digital age (see Accelerated Care Plus Corp. v. Diversicare Mgmt. Servs. Co., No....more
If you are using a noncompetition agreement in Nevada, you may want to consider reviewing that agreement. The Nevada Supreme Court recently held that state courts shall not modify – or “blue pencil” – non-compete agreements...more
In July 2016, the Nevada Supreme Court held that when a non-compete agreement extends beyond what is necessary to protect the employer’s interest, the agreement is wholly unenforceable and courts may not modify or “blue...more
In a recent opinion, the Supreme Court of Nevada refused to adopt the “blue pencil” doctrine when it ruled that an unreasonable provision in a non-compete agreement rendered the entire agreement unenforceable. “Blue...more
The Nevada Supreme Court recently held that it is improper for Nevada courts to modify overbroad non-compete agreements. The Court emphasized that it was not creating new law with this ruling, but rather clarifying existing...more
In the first decision to reach the Nevada Supreme Court on whether state district courts may modify or “blue pencil” non-competition agreements, the high court has concluded that doing so would violate Nevada law. Golden Road...more
Nevada, unlike California, applies a reasonableness test to non-compete agreements. Although the Nevada courts haven’t identified a specific heuristic to be followed, a covenant not to compete will be found to be...more
Readers of this blog should be well aware of California’s general antipathy to covenants not to compete. See links below. Other jurisdictions, however, are less averse. Assuming that a covenant not to compete is...more