What legal options does an employer have in order to fully enforce employee non-compete contracts?
Determining the enforceability of non-competition agreements often requires a case-by-case analysis of the terms of the agreement and the manner of its violation. However, several considerations can guide employers in creating and enforcing effective non-compete agreements. In Nevada, a non-compete agreement is enforceable against a former employee if it is reasonable and not countered by a prevailing public policy. Reasonableness is determined by whether the agreement restrains only such conduct necessary to protect the business and good will of the employer. If the agreement reaches further than necessary, it could impose an undue burden or restraint and a court may refuse to enforce the entire agreement. The principal factors considered are the duration of the non-compete term and the territory to which it applies. A one or two-year non-compete provision is generally reasonable, but longer time periods may be more difficult to enforce. The defined territory covered by a non-compete
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