How a Nevada Supreme Court’s Decision Impacts Non-Competition Agreements

In an article published in the ABA Journal, Greg Grisham discusses a Nevada Supreme Court decision impacting non-competition agreements not only for employers in Nevada but also for all businesses that operate in states with similar statutory structures. Greg provides a summary of the case and explains that the Court’s decision is instructive for employers in the majority of states that permit courts to “blue pencil” or revise overbroad but otherwise valid non-competition agreements.

His take home message is that “non-competition agreements should always contain a provision that permits a court to revise the time and geographic restrictions when it concludes they are unreasonable under the circumstances.” And in the end, he urges all employers to “still exercise caution when drafting time and geographic restrictions to ensure they are reasonable, as courts in some jurisdictions may decline to reform intentionally overbroad noncompetition agreements.”

To read the article visit the ABA Journal.