Nevada Employers, Beware the Impact of the Increased State Minimum Wage on the Daily Overtime Rate

Many employers with enterprise operations in Nevada are conscious by now that Meeting Invoice 456, enacted in June 2019, will increase the minimal wage in increments of 75 cents yearly on July 1 of every 12 months via 2024. Thus, starting on July 1, 2022, the Nevada minimal wage charge for workers who should not supplied “certified well being advantages” underneath the state’s two-tiered minimal wage system will enhance to $10.50 per hour. The minimal wage charge will enhance to $9.50 per hour for workers who’re supplied such qualifying advantages. (See under for particulars on the tiered minimal wage system and when an employer pays the lesser quantity.)

Nevada employers might need to word that a rise within the minimal wage charge brings an automated enhance within the each day additional time charge as nicely. Given the July 1, 2022, minimal wage charge of $10.50 per hour, Nevada employers that pay their staff lower than $15.75 per hour (or $14.25 per hour for employers that provide certified well being advantages) should pay staff each day additional time for time labored over eight hours in a workday or forty hours in per week. Nevada Revised Statutes part 608.0126 defines “workday” as “a interval of 24 consecutive hours which begins when the worker begins work.” That is totally different from the everyday twenty-four-hour interval in a calendar day. Workers incomes greater than 1.5 occasions the relevant minimal wage should not required to be paid each day additional time, however they’re entitled to additional time pay for hours labored over forty in per week. The one exception is that if “by mutual settlement the worker works a scheduled 10 hours per day for 4 calendar days inside any scheduled week of labor.” Nevertheless, any deviations from the “4-10 rule” may trigger additional time to accrue.

That is the primary time that employers in Nevada that pay staff a wage of $15.00 per hour shall be topic to each day additional time. Because of these minimal wage will increase, Nevada employers might need to assess whether or not their staff will now qualify for each day additional time compensation, how this each day additional time compensation will influence their companies, whether or not it makes monetary sense to extend hourly charges to keep away from each day additional time funds, and whether or not they have the correct procedures in place to trace hours labored.

Nevada’s Two-Tiered Minimal Wage System

Beneath Nevada’s two-tiered minimal wage system, employers should pay their staff the upper minimal wage charge except they supply “certified well being advantages” to their staff, each part-time and full-time. Particularly, to ensure that an employer to qualify to pay the decrease minimal wage charge, that employer should:

• supply a medical insurance plan that “[c]overs these classes of well being care bills which might be typically deductible by an worker on his particular person federal earnings tax return” (“the medical insurance plan have to be made accessible to the worker and any dependents of the worker”) (emphasis added);

• present a medical insurance plan wherein the share of the price of the premium for the medical insurance plan paid by the worker—no matter whether or not the worker selects an employee-only or worker plus dependent(s) plan—“[does] not exceed 10 p.c of the gross taxable earnings of that individual worker attributable to the employer underneath the Inner Income Code [emphasis added]” (voluntary ideas should not included within the 10 p.c calculation); and

• contribute $1 per hour labored towards that worker’s medical insurance protection which the worker enrolled in (or may/would have enrolled in).

Additional data on different state minimal wage charges is accessible in Ogletree Deakins’ Interactive Minimal Wage Chart Map.