The Nevada Legislature and Nevada Supreme Court have not always seen eye-to-eye in the interpretation of noncompetition covenants. Historically, the two bodies have parried back and forth in trying to decide where Nevada will draw the line in enforcing restrictive covenants.1 In many cases, the Nevada Supreme Court opted for a strict stance and invalidated noncompetition agreements the court viewed as overly broad. In response, the Nevada legislature pushed back with a mandate that the court should broadly modify, or “blue-pencil,” these agreements to make them enforceable. Despite these efforts, this conflict and the overall discretionary nature of injunctive relief enforcement continue to create challenges in drafting strongly reliable noncompetition agreements in Nevada.
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