Are employers allowed to require employees to sign a non-compete agreement?

In Nevada, employers are legally allowed to require employees to sign a non-compete agreement. Non-compete agreements are legal contracts that limit an employee’s ability to work for a competing business after the employment relationship ends. However, these agreements must be reasonable for the employee. In other words, the agreement must be limited in terms of geography, the type of job prohibited, and the length of time the employee is prevented from working for a competitor. The Nevada Legislature has enacted the Nevada Uniform Trade Secrets Act (NVUTSA), which defines the type of restrictions that can be included in a non-compete agreement. The restrictions must be limited to what is necessary to protect the employer’s legitimate business interests and cannot impose an undue hardship on the employee. For example, the agreement cannot prohibit the employee from seek employment in an unrelated industry or in an unreasonably large geographical area. In addition, Nevada law prohibits employers from requiring employees to sign non-compete agreements upon their first day of employment. It is also illegal for employers to require non-compete agreements in exchange for a raise, promotion, or other job benefit. Ultimately, it is up to the employer to decide if a non-compete agreement is appropriate for their business. However, employers need to make sure to adhere to Nevada law if they choose to have their employees sign a non-compete agreement.

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Are employers allowed to require employees to sign a non-compete agreement?

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