AB 276 — Revises provisions relating to employment practices. (BDR 53-289)

(ReprintedAssembly withBill amendmentsNo. adopted on May 19, 2017) SECOND REPRINT A.B.

276276–Assemblymen ASpiegel, SSEMBLYJoiner, BDiaz; ILL NO .

276–ASSEMBLYMENBilbray-Axelrod, SPIEGEL,Carlton, JOINER,Cohen, DIAZMiller, ;Swank, Thompson and Yeager Joint Sponsors:

BILBRAYSenators -AParks; XELROD , CARLTON , COHEN , M ILLER, SWANK , THOMPSON AND Y EAGER M ARCH 10, 2017 ____________ JOINT SPONSORS :

ENATORSManendo Pand ARKSSegerblom ;CHAPTER..........

MANENDO AND SEGERBLOM ____________ Referred to Committee on Judiciary SUMMARY—Revises provisions relating to employment practices.

(BDR 53-289) FISCAL NOTE:

Effect on Local Government:

No.

Effect on the State:

Yes.

~ EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

Existing law establishes certain employment practices as unlawful and prohibits certain employers, employment agencies and labor organizations from engaging in such practices.

(NRS 613.330) With certain exceptions, this prohibition only in applies to employers who have 15 or more employees for each working day in each of 20 or more calendar weeks, either in the same or the preceding calendar year as billwhen prohibits such an employer,unlawful an employment agencypractice oroccurred. a labor organizations from discriminating against a person with respect to employment or membership, as applicable, for inquiring about, discussing or voluntarily disclosing information about wages.

This(NRS provision613.310) doesSection not3 applyof tothis anybill personprohibits whosuch hasan accessemployer, an employment agency or a labor organization from discriminating against a person with respect to employment or membership, as applicable, for inquiring about, discussing or voluntarily disclosing information information about the wages of other persons as part of his or her essential job functions and discloses the information to a person who does not have access to competentthat jurisdiction.tinformation, except as ordered by the Labor Commissioner or a court of Existingcompetent lawjurisdiction. also prohibits a person, association, company or corporation, or agent or officer thereof, from preventing any person who for any cause left or was - *AB276_R2* – 2 – discharged from their employ from obtaining employment elsewhere in this State.

However,Existing underlaw existingalso law,prohibits a person, association, company or corporation, or agent or officer thereof, is not prohibited from negotiating,preventing executingany andperson enforcingwho anfor agreementany withcause anleft employeeor which,was upondischarged terminationfrom oftheir employment,employ prohibits the former employee from pursuingobtaining aemployment similarelsewhere vocation in competition with or Section 2 of this billState. removes this provision from existing law, allowing for noncompetition agreements.

However, under existing law, a person, association, company or corporation, or an agreement with an employee which, upon termination of employment, prohibitsforcing the former employee from pursuing a similar vocation in competition with or becoming employed by a competitor of the former employer.

(NRS 613.200) Section 2 of this bill removes this provision from existing law, allowing for noncompetition agreements.

(2) does not impose any restraint that is greater than is required for the protection of the employer;imposes restrictions that are appropriate in relation to the valuable consideration supporting the covenant.

(3)Section does1 further provides that a noncompetition covenant may not imposerestrict anya undueformer hardshipemployee onof thean employee;employer from providing service to a former customer or client if:

and (4) supporting the covenant.

Section 1 further provides that a noncompetition covenantn may not restrict a former employee of an employer from providing service to a former customer or client if:

Section 1 also provides that if an restructuring,- a79th noncompetitionSession covenant(2017) – 2 – employee is onlyterminated enforceablebecause duringof thea timereduction inarin force, reorganization or similar which the employer is paying the employee’s salary, benefits or equivalentequivalentme in compensation.

EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

and - *AB276_R2* – 3 – (c) The former employee is otherwise complying with the limitations in the covenant as to time, geographical area and scope of activity to be restrained, other than any limitation on providing services to a former customer or client who seeks the services of the former employee without any contact instigated by the former employee.

- 79th Session (2017) – 3 – 4.

If the termination of the employment of an employee is the result of a reduction of force, reorganization or similar restructuring of the employer, a noncompetition covenant is only enforceable during the period in which the employer is paying the employee’swithout salary,limitation, benefitsseverance orpay.ivalent equivalent compensation, including, without5. limitation, severance pay.

5.

613.200and 1.section 1 of this act, any person, association, company or[,] corporation within this State, or any agent or officer on behalf of the person, association, company or corporation, who willfully does anything intended to prevent any person who for any cause left or was discharged from his, her or its employ from obtaining employment elsewhere in this State is guilty of a gross misdemeanor and shall be punished by a fine of not more than $5,000.

Except as otherwise provided in this section [,] and section 1 of this act, any person, association, company or corporation within this State, or any agent or officer on behalf of the person, association, company or corporation, who willfully does anything intended to prevent any person who for any cause left or - *AB276_R2* – 4 – was discharged from his, her or its employ from obtaining employment elsewhere in this State is guilty of a gross misdemeanor and shall be punished by a fine of not more than $5,000.

If a fine or an administrative penalty is imposed pursuant to this section, the costs of the proceeding, including investigative - 79th Session (2017) – 4 – costs and attorney’s fees, may be recovered by the Labor Commissioner.

The provisions of this section do not prohibit a person, association, company, corporation, agent or officer from negotiating, executing and enforcing an agreement with an employee of the person, association, company or corporation which, upon termination of the employment, prohibits the employee from [:

[or] (b) To limit, segregate or classify an employee in a way which would deprive or tend to deprive the employee of employment opportunities or otherwise adversely affect his or her status as an employee, because of his or her race, color, religion, sex, sexual orientation, gender identity or expression, age, disability or national origin [.] ;

- *AB276_R2* – 5 – 2.

[or] (b) [Classify] To classify or refer for employment any person on the basis of the race, color, religion, sex, sexual orientation, gender - 79th Session (2017) – 5 – identity or expression, age, disability or national origin of that person [.] ;

or (c) Except as otherwise provided in subsection 7, to discriminate against any person because the person has inquired about,wages discussedof oranother voluntarilyperson.ntarily disclosed his or her wages or the wages3. of another person.

3.

4.labor organization or joint labor-management committee controlling apprenticeship or other training or retraining, including, without limitation, on-the-job training programs, to discriminate against any person because of his or her race, color, religion, sex, sexual orientation, gender identity or expression, age, disability or national origin in admission to, or employment in, any program established to provide apprenticeship or other training.