Process of Termination: Nevada
Authors: William R. Dabney and Dora V. Lane, Holland & Hart LLP
Updating Author: XpertHR Editorial Team
- Nevada courts use a specific definition of "good cause" to analyze claims for wrongful termination where the employee was protected by an express or implied employment contract. See Termination for Cause.
- Nevada law sets forth procedures regarding service letters and blacklisting prohibitions. See Service Letters and Job References.
Termination for Cause
When a Nevada employee has successfully established that they are protected by an express or implied employment contract, the employer likely has to demonstrate good cause to terminate the relationship. In that case, Nevada courts use a specific definition of good cause to analyze claims, requiring that employers demonstrate that the reasons for termination are not arbitrary, capricious or illegal. Further, courts require that employers demonstrate the following, when pursuing just cause terminations:
- The reason(s) for termination is/are based on facts supported by substantial evidence; and
- The employer reasonably believes the facts and substantial evidence supporting termination to be true.
In that regard, the employer's belief is not a substitute for good cause and employers can not pursue good cause terminations if the basis for their decisions is factually incorrect.
In Southwest Gas Corp. v. Vargas, +901 P.2d 693 (Nev. 1995), the employer conducted extensive interviews and obtained written statements from other employees. This due diligence was sufficient to substantiate its decision to terminate the plaintiff for cause.
Thus, employers seeking to terminate contractual employees for cause should consider performing internal investigations to thoroughly uncover the facts surrounding any allegations of misconduct. For more information on internal investigations, see Internal Investigations: Federal
Service Letters and Job References
An employee who has been employed for 60 days or more may ask their employer to provide a service letter, comprised of a truthful statement of the reason for the employee's termination of employment, e.g., resignation, and any meritorious services rendered. +Nev. Rev. Stat. Ann. § 613.210(4).
Nevada law also prohibits the blacklisting of any discharged employee with the intent of preventing that employee from securing other employment. +Nev. Rev. Stat. Ann. § 613.210(2).
For further information on Nevada blacklisting prohibitions, see Employee Communications: Nevada.
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