Blog

NEVADA LAWS PROVIDE ADDITIONAL OVERTIME PAY FOR CERTAIN HOURLY EMPLOYEES

It is important that Nevada-based employers have a strong grasp on our state-specific minimum wage and overtime laws. Certain Nevada employees are entitled to higher wages compared to what is required under federal laws such as the Fair Labor Standards Act.

Pursuant to Article 15, Section 16(A) of the Nevada State Constitution, there is a requirement that the minimum wage for an employee who receives health benefits is $7.25 while an employee who does not receive health benefits must receive no less than $8.25**. Governor Sisolak signed a new bill into law on May 21, 2019 that updated the requirements for health coverage that qualifies an employer to pay the lower minimum wage rate, the details of which will be discussed in another blog post.

Nevada overtime laws are generally provided via NRS 608.018.  When an employee who receives less than 1.5 times the applicable minimum wage works more than 40 hours a week, or more than 8 hours in a workday (unless by mutual agreement that employee works 10 hours per day for 4 calendar days within any schedule week of work), his/her employer is required to pay 1.5 times that employee’s regular wage rate for any additional hours.  For an employee who makes at least 1.5 times the minimum wage, that employee only gets overtime for hours worked in excess of 40 hours per calendar week.

Many employers may be unaware of the fact that certain employees are entitled to overtime if they exceed an 8 hour workday, even if they work less than 40 hours per week, as this is in excess of what is required under federal law. However, employers may be subject to liability for failing to pay Nevada employees in accordance with NRS 608.

Pursuant to NRS 608.018(3), there are numerous types of “exempt” employees that are not entitled to overtime, regardless of hours worked.  Here is a non-exhaustive list of certain jobs that can properly be considered exempt from overtime:

  1.  Outside buyers;

  2. Outside salespersons whose earnings are based on commissions;

  3. Employees in retail or service businesses who get a regular pay rate over 1.5 times min wage with more than half their compensation coming for commissions on goods/services;

  4. Employees is bona fide executive, administrative, or professional capacities;

  5. Employees subject to collective bargaining agreements that provide for overtime;

  6. Drivers or drivers’ helpers making local deliveries and paid on a trip-rate basis or other delivery payment plan;

  7. Drivers of taxicabs or limousines;

  8. Agricultural employees;

  9. Employees of business enterprises having a gross sales volume of less than $250,000 per year;

  10. Any salesperson or mechanic primarily engaged in selling or servicing automobiles, trucks or farm equipment;

It is important to remember that even if an employee is paid a salary, it does not mean they are automatically an exempt employee. If a non-exempt employee is paid a salary, NAC 608.125(2) provides that their effective rate of compensation is determined by dividing the amount paid to that employee in a week by the number of hours worked by the employee during the week.

**Note that on July 1, 2020, AB 456 will increase the minimum wage in Nevada to $8 an hour with qualifying health benefits and $9 without qualifying health benefits. The minimum wage will continue to rise by $0.75 annually until it hits $11/$12 respectively on July 1, 2024.

If you are a Nevada employer who has questions regarding Nevada minimum wage and overtime laws, feel free to contact Jordan Wolff at Saltzman Mugan Dushoff, PLLC to discuss. This blog post does not constitute legal advice, and reading or interacting with this website does not create an attorney-client relationship.

Saltzman Mugan Dushoff, PLLC

Share
Published by
Saltzman Mugan Dushoff, PLLC