Nevada jurisprudence has long recognized the legality of contractual non-compete agreements.2. Compete clause is a contractual provision that restricts an employee's ability to engage in competitive activities after leaving a company.Under the final Noncompete Rule, the FTC adopts a comprehensive ban on new noncompetes with all workers, including senior executives. Download a template here. Nevada law outlines broad guidelines for determining whether or not a noncompete is enforceable. This document is intended to provide you with general information regarding Nevada state laws governing non-compete agreements. Essentially, noncompete clauses limit an employee's opportunity to excel in whatever skill or trade they're familiar with. Restrictive employment agreements such as noncompete and nonsolicitation agreements are generally disfavored. On paper, yes, Nevada Law does allow for certain noncompete agreements. Protect Legitimate Business Interests: Under Nevada law, a noncompete agreement must protect the legitimate business interest of the employer.