Non-Compete Agreements in Nevada: Laws, Enforcement, and Disputes Under current law, non-compete agreements cannot apply to employees earning less than $15 per hour or $31,200 annually, ensuring job mobility for lower-income workers Agreements must be reasonable in duration, geographic scope, and the type of work restricted
Recent Nevada Law Places New Restrictions on Non-Compete Agreements - HAGUE As of October 1, 2021, Assembly Bill 47 has added three significant new provisions to NRS 613 195: First, covenants not to compete may not be applied to any employee who is paid solely on an hourly wage basis, exclusive of any tips or gratuities
Nevada Bans Noncompetition Agreements for Hourly Workers Under AB 47, which is effective October 1, 2021, a non-compete agreement may no longer apply to an employee who is paid solely on an hourly wage basis, exclusive of any tips or gratuities
Non-competes banned in the US: What Nevada businesses need to know Nevada law already prohibits employees who receive solely an hourly wage and workers who have been laid off from a lack of work to be subject to non-competes This law is expected to have the most impact on mid-level salaried employees
Is My Non-compete Agreement Enforceable in Nevada? The Legislature passed a law that went into effect on October 1, 2021 that prohibits employers from applying a non-compete to an employee “who is paid solely on an hourly wage basis, exclusive of any tips or gratuities ” It’s unclear whether this law applies to non-competes signed before the effective date
Non-Compete Agreements Under Nevada Law For a Non-Compete Agreement to be legally binding in Nevada, it must have the explicit consent of both parties involved—the employer and the employee Consent is usually evidenced by the signatures of both parties on the agreement, indicating that they have read, understood, and agreed to the terms
Nevada Further Limits Restrictive Covenants With Employees Amendments to Nevada’s non-compete statute, NRS 613 195, will ban non-compete agreements with hourly workers and limit employers’ ability to sue to enforce certain customer servicing restrictions
What To Know About Assembly Bill 47 and Non-Compete Agreements in Nevada The bill restricts the application of noncompete agreements involving hourly workers It states that noncompetition covenants cannot be applied to an “employee who is paid solely on an hourly wage basis, exclusive of any tips or gratuities ”
FTC Proposes Rule Banning Non-Compete Provisions: In 2017, the Nevada Legislature enacted NRS 613 195 to address covenants not to compete and, in 2021, made a material change that precludes enforcement of a non-compete against employees who are “paid solely on an hourly wage basis, exclusive of any tips or gratuities ”