Employment Law
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your business.
Protect both.
Employment disputes are expensive, distracting, and often preventable. We help Nevada employers build legally sound documentation, comply with state-specific obligations, and structure workforce relationships that reduce exposure before problems arise, not after.
The Foundation
Key Employment Documents
Employment relationships are governed by a stack of documents, each serving a different purpose, each creating different rights and obligations. Getting these right from the start costs far less than fixing them after a dispute.
Offer Letters
An offer letter is not just a formality; it is the first legal document in the employment relationship. A well-drafted offer letter confirms the position, compensation, start date, and at-will status. It should also confirm that the offer is contingent on background check and eligibility to work, and explicitly state that the letter does not constitute a contract of employment for any specific period. Avoid language suggesting job security, guaranteed bonuses, or continued employment; courts have found implied contracts in carelessly worded offer letters.
Nevada note: Include an explicit at-will disclaimer. Reference the existence of any required arbitration agreement or confidentiality obligations the employee will be asked to sign separately.
Employment Agreements
Employment agreements are appropriate for executive, senior, or specialized employees where the employer wants to secure the employee's services for a defined term and protect key business interests. A well-structured employment agreement covers base compensation and bonus structure, duties and reporting relationship, term and termination triggers, severance (if any), confidentiality obligations, IP assignment, and post-employment restrictions. The more protection the employer seeks, the more consideration (compensation or severance) the agreement must provide.
Nevada courts scrutinize non-compete and non-solicitation provisions embedded in employment agreements carefully. Overbroad restrictions are unenforceable and may not be judicially reformed. Precision matters.
Independent Contractor Agreements
The independent contractor relationship is defined by the actual nature of the work, not by what the agreement calls it. A well-drafted independent contractor agreement establishes the contractor's control over how the work is performed, their freedom to work for other clients, their responsibility for their own tools and equipment, project-based payment structure, and their obligation to carry their own insurance and pay their own taxes. An agreement that says "contractor" while the underlying relationship looks like employment will not protect the business from misclassification liability.
Include: IP assignment (work-for-hire language is not always sufficient for independent contractors under copyright law), indemnification for contractor's own negligence, and acknowledgment of responsibility for self-employment taxes.
NDAs & Non-Solicitation Agreements
Confidentiality and non-solicitation agreements protect a business's core assets: its trade secrets, customer relationships, and workforce. NDAs are broadly enforceable in Nevada when narrowly tailored to protect legitimately confidential information. Non-solicitation agreements (prohibiting former employees from poaching customers or colleagues) are generally enforced more readily than non-compete agreements because they restrict fewer economic opportunities. We draft these provisions to be enforceable, not just intimidating.
Define "confidential information" specifically. Courts give less deference to catch-all definitions. Identify the categories of information you are protecting and, for trade secrets, document your reasonable efforts to maintain secrecy.
Non-Compete Agreements
Nevada's non-compete statute (NRS 613.195) was significantly amended in 2017 and again in 2021. Nevada courts will not enforce non-compete agreements against employees who are paid hourly or who are laid off. For employees who can be subject to non-competes, the restriction must be narrowly tailored to protect a legitimate business interest, reasonable in geographic scope and duration, and the agreement must be supported by adequate consideration at signing. Over-drafted non-competes are not reformed by Nevada courts; they are voided.
NRS 613.195(5): Non-compete agreements are void and unenforceable against employees who are paid solely on an hourly basis. NRS 613.195(7): If an employer lays off an employee, any non-compete is void unless the employer continues to pay the employee's base salary during the restricted period.
Employee Handbooks
An employee handbook is not a legal obligation in Nevada, but it is one of the most effective tools for managing employment-related risk. A properly drafted handbook establishes the policies, standards, and procedures that define the employment relationship: at-will disclaimers, harassment and discrimination policies, leave policies (PTO, FMLA, Nevada sick leave), social media use, technology use, expense reimbursement, and discipline procedures. It also provides evidence, in litigation, that the employer had policies in place and that the employee was aware of them.
Critical: A handbook with a well-drafted at-will disclaimer and disclaimer of contractual intent can protect against implied contract claims. A handbook without these provisions can create them.
State-Specific Rules
Nevada Employment Law
Nevada employment law has several provisions that are more protective of employees than federal law, and a number that diverge in ways that catch out-of-state employers off guard. If you operate in Nevada, these rules apply regardless of where you are incorporated.
At-Will Employment
Nevada is an at-will employment state: either party may terminate the employment relationship at any time, for any lawful reason or no reason at all, without notice. This rule can be modified by contract: an employment agreement with a for-cause termination provision overrides at-will status. Courts have also found implied contracts modifying at-will status based on employee handbook language, employer representations, and course of conduct. The most effective protection is a clear, signed at-will acknowledgment in both the offer letter and the handbook.
Final Pay Requirements
Nevada has strict rules on final paychecks. If an employer discharges an employee, all wages due must be paid immediately at the time of termination. If an employee resigns, final pay is due by the next regularly scheduled payday or within seven days of separation, whichever is earlier. Nevada NRS 608.020-608.040. Failure to timely pay final wages exposes the employer to waiting time penalties of continued wages at the regular rate for up to 30 days. These penalties apply per employee and can compound quickly.
Non-Compete Enforceability (NRS 613)
Nevada's non-compete statute imposes substantive limits on what non-compete agreements may restrict. Courts evaluate: whether the restriction protects a legitimate business interest (trade secrets, specialized training, goodwill), whether it is reasonable in duration and geographic scope, and whether the consideration is adequate. Courts will not blue-pencil an overbroad non-compete; if it is unenforceable as written, it is unenforceable entirely. The statute expressly voids non-competes for hourly employees and employees laid off without the employer continuing to pay base salary during the restricted period.
Minimum Wage & Overtime
Nevada's minimum wage is tiered: employees who receive qualifying health benefits from their employer are subject to a lower rate; employees who do not are subject to a higher rate. Nevada follows federal overtime rules under the FLSA: non-exempt employees must be paid 1.5x their regular rate for hours over 40 in a workweek. Nevada also requires overtime for hours over eight in a single day for employees who are not covered by a collective bargaining agreement, making Nevada's daily overtime requirement more protective than federal law.
Required Policies
Nevada law requires employers to maintain written policies on: sexual harassment (including a mechanism for reporting and investigation), domestic violence leave (NRS 608.0198), paid leave (NRS 608.0197, applicable to employers with 50+ employees and requires up to 40 hours of paid leave annually), jury duty leave, and lactation accommodation. Employers covered by the FMLA must post and distribute the required FMLA notice. Failure to maintain required policies creates both regulatory exposure and evidentiary problems in litigation.
Background Check Restrictions
Nevada has enacted "ban the box" legislation at the state level restricting when employers may ask about criminal history in the hiring process. Local ordinances in Clark County and the City of Las Vegas impose additional restrictions. Federal law (FCRA) governs the use of third-party background check providers and requires specific disclosures and adverse action procedures before an employer takes an adverse action based on background check results. Non-compliance with FCRA adverse action requirements is a common source of class action litigation.
Where Exposure Comes From
Employer Risk Areas
Most employment claims arise from predictable, identifiable patterns. Understanding the risk, and addressing it before a claim is filed, is the most cost-effective approach to employment law for any employer.
Worker Misclassification
The Risk
Treating an employee as an independent contractor, whether to avoid payroll taxes, benefits obligations, or labor law protections, creates multi-layered exposure. The IRS, the Nevada Department of Employment, Training and Rehabilitation, and the Department of Labor each apply different tests, but the core question is the same: does the worker function as an employee in economic reality? Misclassification liability includes back payroll taxes (employer's share), unpaid benefits, overtime exposure, and civil penalties.
Mitigation
Apply the IRS right-to-control test and the economic reality test before classifying. Use properly drafted independent contractor agreements that reflect the actual relationship. Conduct periodic audits of your contractor workforce. If the relationship is truly employee-like, reclassify before the government does it for you.
Wage & Hour Violations
The Risk
Wage and hour violations (unpaid overtime, misclassified exempt employees, off-the-clock work, improper deductions from pay) are among the most common and costly sources of employer liability. Nevada's daily overtime rule, combined with federal FLSA requirements, creates a matrix of obligations that many employers inadvertently violate. Class action wage and hour litigation is frequently driven by policy-level failures: a single improper practice applied to dozens or hundreds of employees generates significant aggregate exposure.
Mitigation
Audit exempt classifications annually; the salary threshold under federal law changes, and the duties test requires a genuine analysis of each position. Implement timekeeping systems that capture all hours worked, including pre-shift and post-shift activities. Review meal and rest break practices against Nevada and federal requirements.
Harassment & Discrimination Exposure
The Risk
Employers are liable for harassment by supervisors and, under certain circumstances, by co-workers and third parties when the employer knew or should have known about the conduct and failed to act. Title VII, the Nevada Equal Rights Commission (NERC) framework, and the ADA impose overlapping obligations. A single harassment or discrimination complaint that is mishandled, whether by ignoring it, conducting an inadequate investigation, or retaliating against the complainant, can compound initial exposure dramatically.
Mitigation
Maintain a compliant written harassment policy with clear reporting channels. Train supervisors annually on recognition, reporting obligations, and the prohibition on retaliation. Conduct prompt, documented, and impartial investigations of all complaints. Document the remedial action taken. Retain investigation records.
Wrongful Termination
The Risk
Nevada's at-will doctrine does not permit termination for every reason. Discharging an employee in violation of public policy (e.g., retaliation for reporting workplace safety violations or filing a workers' compensation claim), for exercising a protected right, or because of a protected characteristic constitutes wrongful termination. Even in at-will states, the manner and documentation of a termination matters significantly: terminations that appear arbitrary, inconsistent with stated policy, or temporally close to protected activity invite scrutiny.
Mitigation
Document performance issues contemporaneously, not just at termination. Apply disciplinary policies consistently. Ensure the stated reason for termination is accurate and supported by the record. Conduct a pre-termination review for any employee who has recently engaged in protected activity (complaints, FMLA leave, workers' comp claim).
Trade Secret Protection
The Risk
Nevada's Uniform Trade Secrets Act (NRS Chapter 600A) and the federal Defend Trade Secrets Act (DTSA) protect confidential business information (customer lists, pricing strategies, proprietary processes, software) from misappropriation. The risk is not just departing employees taking information to a competitor; it also includes inadequate internal controls that allow information to be accessed by those without a need to know, undermining the "reasonable measures" requirement for trade secret protection.
Mitigation
Implement access controls that limit confidential information to employees who need it. Use NDAs with specific, defined categories of protected information. Conduct offboarding procedures that include reminders of confidentiality obligations and return of company property. Document reasonable measures taken to protect each category of trade secret.
Common Questions
FAQ
Are non-compete agreements enforceable in Nevada?
Yes, with meaningful limitations. Nevada courts will enforce non-compete agreements that protect a legitimate business interest, are reasonable in scope and duration, and are supported by adequate consideration. However, NRS 613.195 expressly voids non-competes against employees paid solely on an hourly basis and against employees who are laid off unless the employer continues paying base salary throughout the restricted period. Courts will not judicially reform an overbroad non-compete; if the restriction is unreasonable as written, the entire provision is void. Precision in drafting is not optional.
Do I need an employee handbook?
No Nevada statute requires a private employer to maintain a handbook. But the question is really about risk management, not legal obligation. A well-drafted handbook: establishes and documents your policies, creates the at-will disclaimers and contractual disclaimers necessary to prevent implied contract claims, satisfies Nevada's requirement to have written anti-harassment and paid leave policies, and gives you evidentiary support in any employment dispute. Employers without a handbook have no documented baseline, and every practice dispute becomes a credibility contest.
What does at-will employment mean in Nevada?
At-will employment means either party (employer or employee) can end the employment relationship at any time, for any reason or no reason at all, without advance notice or cause. The employer does not owe the employee an explanation for the termination (though providing one is often strategically wise), and the employee owes the employer no notice period (though giving two weeks' notice is a professional norm). At-will status has important exceptions: employers cannot terminate employees for discriminatory reasons, in retaliation for protected activity, or in violation of a specific contract or public policy.
What is the difference between an employee and an independent contractor?
The legal distinction is not determined by what you call the relationship in a contract; it is determined by the economic reality of how the work is performed. Key factors include: who controls the manner and method of the work (not just the outcome), whether the worker is economically dependent on one business or operates independently, whether the work is integral to the business's core operations, and whether the worker has invested in their own tools and business infrastructure. The IRS applies a right-to-control analysis; the Department of Labor applies the FLSA economic reality test; Nevada applies its own framework under NRS 616B for workers' compensation purposes.
What should an offer letter include?
At minimum: the position title and reporting relationship, start date, compensation (base salary or hourly rate, and whether any bonus is discretionary), at-will employment disclaimer (in clear and unambiguous language), contingencies (background check, work authorization verification), and a reference to any agreements the employee will be required to sign at or before start. What to avoid: language suggesting a guaranteed term of employment, guaranteed bonuses, or statements that the employee will only be terminated "for cause." An offer letter reviewed by counsel before it is sent is significantly cheaper than an implied contract claim after the employee is terminated.
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