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Many practitioners in Nevada had been operating under the assumption that the Nevada Supreme Court’s 2016 opinion in
Golden Road Motor Inn, Inc. v. Islam, 132 Nev. 476, 376 P.3d 151 (2016) automatically rendered void and unsalvageable any non-competition agreement entered into prior to the enactment of NRS 613.195(5)[1] in June 2017 that contained a single unreasonable geographic or temporal restriction.. On December 31, 2020, however, the Nevada Supreme Court remedied this misconception by clarifying that parties may contractually consent to blue-penciling[2] of unreasonable or unenforceable non-competition clauses.
Background
Fielden Hanson Isaacs Miyada Robison Yeh, Ltd. (the “Employer”) is a provider of anesthesia and pain management services in Nevada who entered into employment agreements with two anesthesiologists (the “Employees”) in November 2016. The employment agreements contained non-competition