Nevada established an income threshold for non-compete agreements and reformed its law in 2022 (NRS § 613.195). Non-competes are void for workers earning $35,000 per year or less. For higher-earning workers, non-competes are enforceable but with significant requirements: employers must provide garden leave pay of at least one month’s salary during the enforcement period, and courts must reform unreasonable agreements (blue-pencil mandate). The law reflects Nevada’s recognition that workers deserve protection from overly restrictive agreements and that employers using non-competes should pay for the restriction.
If you work in Nevada, the income threshold and garden leave requirement are critical to understand. Below the threshold, you’re automatically protected. Above it, your employer must provide meaningful compensation for the restriction. This guide walks you through Nevada’s approach and what you should know about your rights.
Key Facts
| Factor | Details |
|---|---|
| Enforceability | Void for workers earning ≤$35,000/year; reasonable test for others |
| Maximum Duration | 2 years typical (for eligible workers) |
| Income Threshold | $35,000 per year (2022 update; may be adjusted) |
| Garden Leave Requirement | REQUIRED: at least one month’s salary during restriction period |
| Blue-Pencil Reform | Courts MUST modify unreasonable agreements |
What Makes a Non-Compete Enforceable in Nevada
First: if you earn $35,000 per year or less, your non-compete is void and unenforceable. The income threshold was set in 2022 and may be adjusted periodically, so verify the current figure with an attorney if you’re near the boundary. Below this threshold, you cannot be restricted from competing.
For workers above $35,000, a non-compete is enforceable only if it meets Nevada’s requirements: it must be reasonable in duration, geography, and scope; the employer must have a legitimate business interest; and most critically, the employer must provide garden leave pay of at least one month’s salary during the enforcement period.
Garden leave is mandatory in Nevada. Unlike many states where it’s optional, Nevada requires employers to pay employees during the non-compete period. This payment must be at least one month’s salary—an important protection that acknowledges workers shouldn’t lose their ability to earn. The payment structure should be clearly stated in the agreement.
Courts in Nevada must reform (blue-pencil) agreements that are unreasonable. This is different from states where courts have discretion to reform. Nevada makes blue-pencil mandatory, providing strong protection to workers—if your non-compete is partially unreasonable, courts will fix it rather than void it entirely.
Income Thresholds and Worker Exemptions
Nevada’s income threshold is clear: if you earn $35,000 per year or less, your non-compete is automatically void. This threshold is per-year income and includes base salary, bonuses, and other compensation. If your total annual compensation is $35,000 or less, the non-compete is unenforceable regardless of other terms.
For workers above $35,000, the reasonableness test applies, but with the garden leave requirement. Even high-earning workers with trade secret access cannot enforce a non-compete without providing the required garden leave payment. This is a significant worker protection unique to Nevada.
Workers who are laid off or terminated at-will present a special case. Nevada law suggests that laid-off workers cannot be bound by non-competes unless the employer pays full salary during the restriction period. At-will employees face additional limitations. If you’re terminated or laid off, the non-compete may be completely void or enforceable only with significant payment obligations.
What Happens If You Violate One
If you earn $35,000 or less, violating a non-compete carries no legal risk—the agreement is void. For above-threshold workers, violation can result in a lawsuit for injunctive relief and damages. However, Nevada’s blue-pencil mandate gives you protection: courts will modify unreasonable provisions before enforcing.
If you’re unsure whether you’re above or below the threshold, or whether the non-compete meets Nevada’s requirements, consult an attorney. Many non-competes fail Nevada’s scrutiny because employers don’t provide the required garden leave payment.
Nevada’s requirements are worker-friendly. Many employers don’t follow them, making their non-competes unenforceable or providing you leverage to negotiate.
Real Situations in Nevada
A hospitality worker in Las Vegas earning $28,000 per year was required to sign a non-compete restricting her from working in competing hotels for 2 years. Because her income ($28,000) is below Nevada’s $35,000 threshold, the non-compete is void. She can accept a competing position without legal risk. (Under NRS § 613.195, the agreement is automatically unenforceable.)
In another case, a software engineer in Reno earning $120,000 per year signed a non-compete restricting competing software development for 2 years statewide. The agreement specified no garden leave payment. When he joined a competitor, his former employer sued. The court found the non-compete unenforceable because the required garden leave payment (at least one month’s salary, or approximately $10,000) was not provided. Without this mandatory payment, the agreement violated Nevada law.
A casino manager in Henderson earning $85,000 per year was subject to a non-compete restricting competing casino management within 100 miles for 3 years, with garden leave pay of one month’s salary ($7,083). The manager’s income is above the threshold and garden leave was provided, but 3 years seemed excessive for the industry. The court used mandatory blue-pencil reform to reduce the duration to 2 years, making the modified agreement enforceable for the shorter period with the agreed-upon garden leave payment.
Common Mistakes Nevada Employees Make
Mistake 1: Not calculating income to determine threshold status. Many below-threshold employees comply with void non-competes. Calculate your total annual income including all compensation. If you’re at or below $35,000, the non-compete is void—you’re protected.
Mistake 2: Not checking for garden leave payment in above-threshold agreements. If you earn above $35,000 and your non-compete doesn’t specify garden leave payment of at least one month’s salary, the agreement likely violates Nevada law. Document the missing requirement and consult an attorney.
Mistake 3: Failing to negotiate garden leave terms. If you’re above the threshold and being asked to sign a non-compete, negotiate the garden leave amount. Nevada requires at least one month, but you can negotiate for more. Get this in writing before signing.
What to Do If You Have a Non-Compete
Step 1: Calculate your annual income to determine threshold status. Add all compensation (salary, bonuses, commissions, benefits). If total annual compensation is $35,000 or less, the non-compete is void. If you’re above the threshold, proceed to Step 2.
Step 2: Verify garden leave payment is specified. Review your non-compete for written specification of garden leave payment. The payment must be at least one month’s salary. If the agreement doesn’t specify this payment or specifies less, the non-compete violates Nevada law.
Step 3: Document your threshold status and garden leave gaps. Keep pay stubs showing your annual income. Keep copies of your non-compete highlighting missing or inadequate garden leave provisions. This documentation supports your defense if the employer attempts enforcement.
Step 4: Consult a Nevada employment attorney before taking a competing position. Have a lawyer confirm your threshold status and assess enforceability. An attorney can advise whether the agreement is void, unenforceable due to missing garden leave, or enforceable as written.
Step 5: Report employer violations to the Nevada Attorney General. If your employer attempts to enforce void non-competes or fails to provide required garden leave, report the violation at https://ag.nv.gov.
Related Guides
- Employment Rights Guide for Nevada Workers
- Nevada Wage Theft Laws: What You Need to Know
- Small Claims Court Guide: Handling Your Own Employment Disputes
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Non-compete enforceability in Nevada requires analysis of income thresholds and specific terms. For advice on your situation, consult a licensed employment attorney in Nevada. The information reflects the law as of March 2026.