Employers should adhere to their own policies regarding whether accrued, unused vacation time must be paid upon termination.
Nevada Labor Laws
Nevada Minimum Wage
Nevada has a two-tier minimum wage system. As of July 1, 2021, the minimum wage is $8.75 per hour for employers that provide a qualified health benefit plan, and $9.75 per hour for employers that do not offer such a plan.
The minimum wage rates in Nevada will increase over the next several years as follows:
- July 1, 2022: $9.50 per hour (lower tier), $10.50 per hour (higher tier)
- July 1, 2023: $10.25 per hour (lower tier), $11.25 per hour (higher tier)
- July 1, 2024: $11.00 per hour (lower tier), $12.00 per hour (higher tier)
Nevada Labor Law Posters
Simplify labor law compliance and make workplace policies visible with J. J. Keller state and federal labor law posters.
History of Nevada Labor Laws
Due to the 2006 Minimum Wage Amendment to the Nevada Constitution, employers must provide employees with a qualified health plan to pay them the lower-tier minimum wage rate.
In 2016, the Nevada Supreme Court clarified what it means for an employer to “provide” a qualified health plan. In the case of MDC Restaurants LLC v. Eighth Judicial District Court, the court ruled that an employer does not need to “enroll” the employee in a health plan but merely needs to “offer” the benefit.
In 2018, the court further ruled in MDC Restaurants LLC that an employer must provide health insurance equivalent to one dollar per hour in wages, as the minimum wage rate is reduced by one dollar when a qualified health plan is provided.
Most recently, the legislature addressed the types of health benefits required for employers to pay the lower-tier minimum wage rate. SB 192, effective January 1, 2020, mandates that health coverage must include:
- Ambulatory patient services
- Emergency services
- Hospitalization
- Maternity and newborn care
- Mental health and substance use disorder services, including behavioral health treatment
- Prescription drugs
- Rehabilitative and habilitative services and devices
- Laboratory services
- Preventive and wellness services and chronic disease management
- Pediatric services (excluding oral and vision care)
- Any other health care service or coverage level required under Nevada law
Municipality Minimum Wage Laws
Nevada does not have any preemption laws regarding minimum wage. This means that cities in Nevada have the authority to set minimum wage rates higher than the state requirement. However, no cities or localities in Nevada have chosen to do so.
Nevada Minimum Wage Exemptions
According to Nevada Revised Statutes 608.255, an employment relationship does not exist, and therefore minimum wage does not need to be paid, for the following workers:
- A person with an intellectual or developmental disability participating in a jobs and day training services program
- An independent contractor
Nevada Posting Requirements
Required posters:
- Rules to Be Observed by Employers (Wage and Hour Laws)
- Annual Minimum Wage Bulletin
- Annual Daily Overtime Bulletin
- Fair Employment
- Pregnant Workers' Fairness Act
- Nursing Mother's Accommodation Act
- Domestic Violence Victim's Bulletin
- Emergency Numbers
- Paid Leave Act
- Payday Notice
- Lie Detector Tests
- OSHA
- Employee Sick or Sustained Injury
- Unemployment Insurance
- Workers' Compensation
Tipped Wage in Nevada
Nevada law prohibits employers from taking any part of an employee’s tips or gratuities or using them toward a tip credit.
Regarding tip pools, the Nevada Supreme Court ruled in 2013 that employers can require employees to participate in tip pools, even if the employees are of different ranks.
Overtime Wage in Nevada
The overtime rate is one-and-a-half times an employee’s regular wage rate.
Overtime is required when an employee works more than 40 hours in a workweek.
Daily overtime is required when an employee:
- Works more than eight hours in a 24-hour period, and
- Earns less than one-and-a-half times the applicable state minimum wage rate. As of July 1, 2020, the daily overtime rate is $12 per hour if the employee is offered qualified health benefits and $13.50 per hour if the employee isn’t offered qualified health benefits.
- Note: An employer and employee may agree to a schedule of four 10-hour shifts, in which case daily overtime isn’t required.
Exemptions from Overtime Requirements (Nevada Revised Statutes 608.018):
- Employees not subject to the state minimum wage
- Outside buyers
- Employees in a retail or service business if their regular rate is more than one-and-a-half times the minimum wage, and more than half their compensation for a representative period (at least one month) comes from commissions on goods or services
- Executive, administrative, or professional employees
- Employees covered by collective bargaining agreements that provide otherwise for overtime
- Drivers, drivers’ helpers, loaders, and mechanics for motor carriers subject to the Motor Carrier Act of 1935, as amended
- Railroad employees
- Employees of a carrier by air
- Drivers or drivers’ helpers making local deliveries and paid on a trip-rate basis or other delivery payment plan
- Drivers of taxicabs or limousines
- Agricultural employees
- Employees of business enterprises with a gross sales volume of less than $250,000 per year
- Salespersons or mechanics primarily engaged in selling or servicing automobiles, trucks, or farm equipment
- Mechanics, under certain circumstances
- Domestic workers who reside in the household where they work, if an employer-employee agreement regarding overtime has been reached
- Domestic service employees who reside in the household, if the employer and employee have a written agreement regarding overtime
Child Labor Laws in Nevada
According to Nevada’s child labor laws, minors under the age of 16 are allowed to work a maximum of eight hours per day and 48 hours per week.
Employer Recordkeeping Requirements in Nevada
Nevada employers are required to maintain records of wages paid to each employee for two years. These records must include the following information for each pay period:
- Gross wage or salary, excluding compensation in the form of services, food, housing, or clothing
- Deductions
- Net cash wage or salary
- Total hours worked in the pay period, noting the number of hours per day (with some exceptions for domestic service employees)
- Date of payment
If an employee requests this information, the employer must provide it within 10 days.
Nevada Labor Law Questions & Answers
Yes, small businesses in Nevada must comply with state minimum wage rules. The rate depends on whether the employer offers health insurance to employees.
Minors under 16 years old can work up to eight hours per day and 48 hours per week.
Yes, employers must pay overtime at one-and-a-half times the regular wage rate for hours worked over 40 in a workweek. Additionally, Nevada has a daily overtime requirement for employees who work more than eight hours in a 24-hour period and earn less than one-and-a-half times the state minimum wage rate.
Yes, employees are entitled to an unpaid 30-minute meal period for each eight-hour work period. Additionally, for every four hours worked, employers must provide a paid 10-minute break.
Nevada Labor Law Posters
Simplify labor law compliance and make workplace policies visible with J. J. Keller state and federal labor law posters.