October 22, 2020

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Nevada’s Minimum Wage Set to Increase on July 1, 2020

As most employers are aware, Nevada has a two-tier minimum wage system. Currently, Nevada employers are required to pay their employees a minimum of $8.25 per hour unless they qualify to pay the lower tier minimum wage rate of $7.25 per hour. Employers seeking to qualify for the lower tier minimum wage must meet the following requirements: (1) the employer must offer qualifying health insurance benefits; (2) those benefits must be offered to the employee and any dependents; (3) the employee’s share of the cost of the premium for health insurance benefits cannot exceed 10 percent of the employee’s income; and (4) the employer must provide a benefit in the form of health insurance at least equivalent to the one dollar per hour in wages that the employee would otherwise receive. Nevada employers that believe they qualify to pay the lower minimum wage should consider reviewing their health insurance benefits to ensure the benefits meet the stringent requirements of Nevada Administrative Code sections 608.102 and 608.104.

Effective July 1, 2020, Nevada’s minimum wage will increase to $9.00 per hour, and $8.00 per hour for those employers that offer qualifying health insurance benefits. The Nevada minimum wage is set to increase by $0.75 each year on July 1, until 2024 at which time the minimum wage will reach either $12.00 per hour or $11.00 per hour if the employer offers qualifying health insurance benefits.

As the minimum wage rates increase, the daily overtime rate rises as well. In Nevada, daily overtime is based on whether an employee “receives compensation for employment at a rate less than [1.5] times” the applicable minimum wage. Employees earning less than 1.5 times the minimum wage (which is equivalent to $13.50/$12.00 per hour effective July 1, 2020) must be paid daily overtime for time worked over 8 hours in a workday or 40 hours in a week. Nevada Revised Statutes section 608.0126 defines “workday” as “a period of 24 consecutive hours which begins when the employee begins work.” This is different from the typical 24-hour period in a calendar day. Employees earning more than 1.5 times the applicable minimum wage are not required to be paid daily overtime, but are entitled to overtime pay for hours worked over 40 in a week. The only exception is if “by mutual agreement the employee works a scheduled 10 hours per day for 4 calendar days within any scheduled week of work.” However, any deviations from the “4-10 rule” could cause overtime to accrue.

Due to these minimum wage increases, Nevada employers may want to assess whether their employees will now qualify for daily overtime compensation (i.e., they make less than $13.50/$12.00 per hour respectively), how this daily overtime compensation will impact their businesses, whether it makes financial sense to increase hourly rates to avoid daily overtime payments, and whether they have the proper procedures in place to track hours worked.

© 2020, Ogletree, Deakins, Nash, Smoak & Stewart, P.C., All Rights Reserved.National Law Review, Volume X, Number 179
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About this Author

Dana B. Salmonson Labor & Employment Attorney Ogletree Deakins Law Firm Las Vegas
Associate

Dana Salmonson focuses her practice on defending employers against current and former employees in all aspects of employment litigation. She has extensive experience representing her clients in wage and hour class and collective actions both in state and federal courts involving hundreds and thousands of putative class members.  These cases include alleged violations of minimum wage, overtime, and off-the-clock work. Dana also defends her clients in employment matters involving claims of harassment, discrimination, retaliation, and wrongful termination brought under...

702-369-6808
Noel M. Hicks Labor & Employment Attorney Ogletree Deakins Law Firm Las Vegas
Associate

Noel Hicks is an associate in the Las Vegas office. She represents employers of various sizes in state and federal court litigation and administration proceedings in all aspects of labor and employment law including wrongful termination, discrimination, wage and hour, breach of contract, harassment, retaliation, and employee classification disputes.

Ms. Hicks works with clients on matters at the pre-litigation stage to facilitate a favorable resolution before a lawsuit is initiated. Ms. Hicks also works with employers to draft tailored employee handbooks and implement best practice workplace policies.

Prior to joining Ogletree Deakins, Ms. Hicks completed a judicial clerkship for the Honorable Timothy C. Williams in the Eighth Judicial District Court, where she helped draft legal opinions, analyze summary judgment motions, and brief upcoming issues for trial.

Ms. Hicks’ life outside of work includes spending time with friends and family, as well as volunteering with the Junior League of Las Vegas.

702-369-6800
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