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The Nevada Supreme Court recently addressed the question of whether lower courts may blue-pencil an otherwise unenforceable noncompetition agreement pursuant to a provision in the agreement that allows for court modification to redeem unreasonably restrictive clauses. The court’s decision is instructive not only for Nevada employers but for all businesses that operate in states with similar statutory structures.
Brief History and Background
The question of whether Nevada courts could judicially modify an overbroad noncompetition agreement was seemingly answered in the negative by the Nevada Supreme Court in 2016 (