Minimum Wage Laws: Updates, Impacts, and Compliance – A Quick Guide for Nevada

Nevada’s minimum wage currently stands at $10.50 per hour, while the Federal Minimum Wage is $7.25/hour. According to the FLSA guidelines, employees are entitled to receive the higher of the two rates.

If you are employed in Nevada, it is your rightful claim to be paid no less than $10.50 per hour. However, there are a few exceptions to Nevada’s minimum wage laws, including certain categories of employees such as students, tipped employees, and specifically exempted occupations.

Nevertheless, the days of Nevada’s minimum wage rate of $10.50 per hour are numbered, as the Labor Commissioner revises the rates annually, with the changes coming into effect on July 1st. This year, the Labor Commissioner Law has announced revised minimum wages, and all employers in Nevada must comply with these new rates.

These updates not only increase the minimum wage rates in Nevada but also revise the daily overtime rates. It is of utmost importance for both employers and employees to stay informed about the state’s minimum wage laws to ensure that their rights are protected and to take necessary action if the law is not being upheld, which will be considered a violation of employee rights.

Updates

  • From July 1, 2023, onwards, employees in Nevada will experience a change in the minimum wage. For individuals who are not provided with qualifying health benefits, the new minimum wage will be $11.25 per hour. On the other hand, employees who are offered qualifying health benefits will receive a minimum wage of $10.25 per hour.
  • Starting July 1st, 2024, Nevada’s minimum wage will see an increase to $12 per hour, irrespective of whether employees receive health benefits from their employer.

Impacts

The revised minimum wage rates will also impact the daily overtime rates in Nevada and must be observed starting from July 1st, 2023.

In Nevada and many other states, overtime is considered when an employee works over 8 hours in a day and over 40 hours in a workweek. If the employees continue to work past 8 hours in 24 hours, they must be paid overtime. The same goes when they cross the weekly work hours’ threshold.

In this case, the following employees are entitled to overtime wages:

  • Employees who earn less than $15.38/hour and are offered qualifying health benefits
  • Employees who earn less than $16.88/hour and are not offered qualifying health benefits

Nevada’s minimum wage laws always impact Nevada’s overtime laws because the two are connected.  According to the law, the employer must pay 1.5 times the employee’s wage when they work overtime unless they are exempted from the law.

One of the exemptions includes when both parties (the employer and the employee) have pre-decided on a work schedule, such as working 12-hour shifts for 3 weekdays and a 4-hour shift on a weekend.

We strongly suggest that if you decide on an alternate work schedule with your employer, you must seek legal counsel before doing so to help protect your rights.

Compliance

Every employer in Nevada is legally bound to pay minimum wages and overtime wages to their employees. Failing to adhere to labor laws and overtime laws can lead to penalties, criminal charges, lawsuits, and legal liabilities. In some cases, if the employer fails to comply with the law, they may even suffer from the closure of the business.

Employers must ensure the following to stay compliant with the law:

  • Prepare for the annual revisal in advance by revising their payroll system and revisiting their employee schedules.
  • Communicate with third-party payroll processing services to ensure a smooth transition to increased minimum wages.  
  • Implement and maintain a robust and foolproof system for accurately recording and documenting employees’ work hours, including their time-ins and timeouts.
  • Make every effort to ensure that each employee is paid the full Nevada minimum wage rate, avoid over-scheduling employees, and consistently adhere to timely payment practices.

Cutting to the Chase

If you suspect that your employer is not complying with the labor law regulations, reach out to us at The Bourassa Law Group. We can help you take civil action against your employers for not complying with the regulations of the law, and they may have to compensate you back pay, damages, injunctive relief, attorneys’ fees, and any other remedies allowed by the law.

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