“Workplace rights are human rights.” — Eleanor Roosevelt
Unlike most states, those who operate a business in the state of Nevada must pay certain employees overtime wage when they work more than 8 hours in a 24-hour period. Tied to the minimum wage rate, this daily overtime rate is unique to the state of Nevada.
This guide is intended to support employers who are not yet aware of this employment law so that they can remain compliant and maintain long-term success.
An Overview of Nevada Overtime Laws
In comparison to other states, Nevada has a number of overtime laws defined by the U.S. Department of Labor that all business owners need to be aware of. By understanding these state laws, companies are able to take a proactive approach in regard to employee rights and standards.
Put simply, in the state of Nevada, employers are required by law to pay overtime hours. However, there are a number of stipulations, influencing who is and who is not eligible.
Since this law has only been effective since July 1, 2015, many employers and employees are still unaware that overtime rules exist. Unfortunately, this is one mistake that can become rather costly.
As stated by the Office of the Labor Commissioner, all Nevada-based employers must pay their staff overtime if:
- An employee makes less than one and one-half times Nevada’s minimum wage per hour. In this case, employers must pay the employee overtime for any time worked over 8 hours in a 24-hour work period. This applies to all employees who make less than $10.88 per hour (who receive EHB), as well as employees who make less than $12.38 per hour (and do not receive health benefits).
- An employee makes more than one and a half times Nevada’s minimum wage, overtime is required when that employee works more than 40 hours a week. This is based on the Fair Labor Standards Act and applies to all employees, regardless of their hourly wage.
What makes Nevada overtime laws unique, is that it is one of only a few states that have implemented daily overtime requirements (in addition to overtime in relation to a 40-hour workweek).
In terms of overtime pay, the rate is 1.5 times the employee’s regular rate. This applies to both examples stated above (those who work in excess of 40 hours a week and those who work in excess of eight hours in a 24-hour period).
As reported by the Nevada Office of the Labor Commissioner, as of July 1, 2018, the minimum wage system and daily overtime requirements will remain unchanged. This is in relation to a law passed in 2006, which will adjust the minimum wage, accounting for inflation annually.
Industries Most Impacted by Nevada Overtime Law
There are some employees who are exempt under Nevada overtime laws, including executives, professionals, administrative employees, retail employees, agricultural employees, and more. You may view the full list of overtime exemptions in Nevada here.
Overall, there are many Nevada-based employers who are frustrated. This is mainly because many are confused as to who is eligible and who is not. As stated in a 2016 article by Nevada Appeal, more than 4 million U.S. workers became eligible for overtime pay.
For example, those who work in the retail and fast food industries are considered non-exempt employees and are particularly impacted by the new overtime pay laws. Those who were managers at the time would often work long hours, making only slightly less than those they supervised (who were receiving overtime pay). This was due to the fact that these managers were paid a flat salary and were therefore not eligible for overtime.
Based on these new rules, the annual salary threshold at which companies can deny overtime pay doubled from $23,660 to almost $47,500. In turn, this made 4.2 million salaried workers eligible for overtime pay.
Tips to Ensure Compliance with Labor and Wage Laws
Awareness is the first step towards greater compliance. As discussed, employers must understand all labor requirements to protect their companies long-term.
Perhaps the greatest tip for employers is to properly track employee hours. By implementing a scheduling software that is reliable and easy to manage, employers can be confident that all employee hours are being properly tracked.
In contrast, those who do not properly track employee hours (which can be analyzed and verified in the future), may be subject to mass amounts of paperwork. For example, if an employee brings this labor law to the attention of their employer, that employee may be entitled to back pay. Without a recorded history of the hours worked, this task could be painstakingly immense.
The worst-case scenario may end in a lawsuit. Whether an employee learns about this law or the employer is audited by the Department of Employment, Training, and Rehabilitation (DETR), the facts remain the same — the employer is liable.
Understanding this rule moving forward, employers can then increase the overall efficiency of their scheduling practices. Here are just a couple of tips for employers:
- Be mindful of the 24-hour rule when employing those who are entitled to overtime pay based on the 24-hour rule. Not only should employers be mindful of shift duration but also the associated start times. Remember, the 24-hour period begins as soon as an employee clocks in.
- To remain diligent in regards to Nevada law, accurate employee timesheets and well-planned employee schedules are imperative.
FAQs about Nevada Overtime Laws
How much is an hour of work paid in Nevada?
An average hourly rate in Nevada is $19, which is just below the nationwide average ($21).
Who is exempt from Nevada overtime laws?
Nevada overtime law doesn’t cover the following employees:
- Commissioned salespeople and automobile salespeople
- Agricultural and farm workers
- Taxis and limousines drivers
- Railroad workers
- Independent contractors
How is the Nevada wage system different from other U.S. states?
The state of Nevada has a unique, two-tier wage system created based on the differences in qualifying health benefits:
- With health insurance, accompanied by a lower hourly rate.
- Without health insurance, accompanied by a higher hourly rate.