Non-compete provisions in employment contracts serve to restrict or limit an employee from competing with the employer after termination of employment. Nevada generally enforces such provisions, provided, however, they are reasonable in scope and duration (see, NRS 613.200(4)). Violations grant the employer the right to seek money damages and/or a preliminary injunction against the terminated employee.
A balancing of competing interests approach is applied by Nevada courts to determine the reasonableness of such covenants. Factors include public policy, employer’s protectable interest, undue hardship on the employee, time period and geographic scope.
By way of example, a physician’s employment contract with a medical group based in Elko, Nevada, may state that if the physician terminates her employment, she is prohibited from providing similar professional services within a seven mile radius, for a period of one year upon termination. However, such a provision may be deemed unreasonable and detrimental to public interest, since Elko is deemed a “Health Professional Shortage Area” (for more shortage areas across the U.S. see: 1.usa.gov/28LCYpu ).
Contact Frontier Health Law today at 702-852-2140, to ensure that your legal rights are protected.