Employer’s Guide to the Nevada Minimum Wage

In the heart of the American West, where the vast desert landscapes meet the vibrant lights of the Las Vegas Strip, lies the state of Nevada – a place known for its unique blend of natural beauty and bustling urban centers. Beyond the iconic imagery, however, lies a complex web of employment regulations that directly impact the livelihoods of the state’s workforce. Among these regulations, the Nevada minimum wage stands as a crucial benchmark, shaping the economic landscape for both employers and employees alike.

In today’s comprehensive guide, we will explore everything that employers in “The Silver State” need to know about the Nevada minimum wage, including history, rates and exemptions. We will also share a list of best practices to help you navigate these regulations effectively and ensure compliance within your organization.

• US Minimum Wage Structure
• Nevada Minimum Wage: Historical Timeline
• Nevada Minimum Wage Rates
• Exemptions & Special Cases
• Additional Nevada Wage Laws
• Wage Law Compliance Best Practices for Employers
• How Factorial Can Help You Comply with Nevada’s Wage Laws
• Discover the Benefits of Automated Payroll Management Software

US Minimum Wage Structure

The minimum wage in the United States operates within a multi-tiered structure, subject to regulations at the federal, state, and municipal levels. At the federal level, the Fair Labor Standards Act (FLSA) sets the baseline minimum wage (currently $7.25 per hour), which applies to most employees across the country. However, individual states have the authority to establish their own minimum wage rates, provided they meet or exceed the federal standard. This decentralized approach recognizes the variation in the cost of living across different regions of the country.

Many states have opted to set minimum wages above the federal level to better align with local economic conditions. Some states even index their minimum wage to inflation, ensuring that it automatically adjusts to the rising cost of living. Examples of this include states like New York, Massachusetts, and California.

In addition to state minimum wage rates, municipalities can also enact their own minimum wage ordinances. This allows local governments to address specific economic challenges and living costs unique to their communities. Consequently, workers in cities with higher living expenses sometimes receive a higher minimum wage than those in other parts of the state.

Ultimately, the multi-tiered structure of the minimum wage acknowledges the diversity of economic circumstances across the nation. While the federal government establishes a baseline, states and municipalities have the flexibility to tailor minimum wage rates to reflect the economic realities of their respective jurisdictions. This system aims to strike a balance between providing a fair wage to workers and accommodating the varying costs of living experienced throughout the United States.

Nevada Minimum Wage: Historical Timeline

The Nevada minimum wage has undergone a fascinating evolution, reflecting both the state’s economic development and the ever-changing needs of its workforce. The journey has been marked by legislative adjustments, economic shifts, and the continuous pursuit of fair compensation for workers.

Here’s a historical summary of the key milestones of the evolving NV minimum wage.

Early Footsteps

• 1967: Nevada takes its first steps, mirroring the federal minimum wage of $1.00 per hour.
• 1970s: Gradual Nevada minimum wage increases take place, reaching $2.65 by 1978.

Twists and Turns

• 1981: Nevada breaks free from the federal minimum, setting its own Nevada state minimum wage.
• 1989 – 2003: A period of relative stability, with the minimum wage in Nevada hovering around $5.15.
• 2004: A significant step forward, with a Nevada minimum wage increase to $6.75.

The Silver Rush of Increases

• 2006: Minimum Wage Amendment (MWA) is signed, and the Silver State introduces a two-tiered minimum wage system, setting rates at $6.85 per hour with health insurance and $7.85 without. The MWA also establishes a method for automatically adjusting the state minimum wage based on the federal minimum wage and cost-of-living increases.
• 2010 – 2018: Nevada’s minimum wage rates increase to $7.25 with health insurance and $8.25 per hour without.
• 2019: Assembly Bill No. 456 is passed, providing for successive increases to the Nevada minimum wage, using a statutory schedule. This measure aims to increase the minimum wage by 75 cents annually until it reaches $11.00 per hour for employers that offer health benefits, or $12.00 per hour for employers not offering health benefits by 2024.
• 2023: Nevada’s two-tiered system evolves further, with increases to $10.25 with health insurance and $11.25 without.

A Landscape in Motion

Nevada’s minimum wage journey remains in constant flux. Advocacy groups push for even higher rates, while businesses navigate the evolving terrain. As debates continue, one thing remains clear: Nevada’s minimum wage history reflects a growing commitment to ensuring working Nevadans receive a fair share of the Silver State’s wealth.

Nevada Minimum Wage Rates

What is the minimum wage in Nevada?

The Nevada minimum wage is a dynamic ecosystem, with adjustments on the horizon. Understanding the nuances for both tipped and non-tipped workers, as well as potential local variations, is key for navigating this evolving landscape.

Here’s everything you need to know.

Untipped Workers

The minimum wage for non-tipped workers depends on whether their employer offers qualified health insurance. Those enjoying employer-sponsored plans earn a minimum of $10.25 per hour, while those without receive $11.25 per hour.

However, there is an upcoming increase to both tiers of untipped workers which is due to come into effect next year. As of July 1, 2024, untipped workers with health insurance will receive $11.00 per hour, while those without will see a $1.00 increase to $12.25 (a 25-cent increase compared to initial plans when Assembly Bill No. 456 was passed in 2019).

Tipped Workers

Nevada recognizes the unique nature of tipped workers, setting a lower minimum wage of $4.15 per hour. However, there’s a crucial caveat: employers must make up the difference if an employee’s earnings including tips do not meet the required minimum wage rate per hour.

Nonetheless, while non-tipped employees will see a bigger increase, tipped workers will also experience a slight bump. On July 1, 2024, the tipped minimum wage will increase to $4.35 per hour, with the same requirement for employers to ensure a $9.50 total hourly wage with tips.

Variations Across The Silver State

The Nevada minimum wage is a state-level baseline. However, some municipalities have chosen to enact higher local minimums to reflect the higher cost of living in the area.

For example, Reno boasts a $12.00 per hour minimum wage for all workers, regardless of whether they receive employer-sponsored health insurance. This exceeds both tiers of the current state minimum wage ($10.25 with health insurance, $11.25 without).

Exemptions & Special Cases

While the ultimate aim of the Nevada minimum wage law is to promote pay parity for all employees, the state does recognize certain exemptions and special cases where the minimum rate does not apply.

Here’s what employers in the state need to be aware of.

Nevada Minimum Wage: Exemptions

• Independent contractors. True independents, not disguised employees, escape minimum wage requirements. Determining true independence can be tricky, so careful assessment is crucial.
• Commissioned salespeople. Individuals primarily earning commissions above 1.5 times the minimum wage can be exempt, though base pay must still meet minimum standards.
• Agricultural & farm workers. Excluded to support the agricultural industry, but regulations ensure overtime pay and other protections.
• Newspaper carriers. Under 18-year-old newspaper carriers delivering door-to-door fall outside minimum wage regulations.

Nevada Minimum Wage: Special Cases

• Tipped workers. As we saw above, Nevada recognizes the unique nature of tipped occupations, setting a lower minimum wage ($4.15 in 2023). However, employers must make up the difference if an employee’s earnings including tips do not meet the required minimum wage rate per hour.
• Young workers. Employees under 16 have a lower minimum wage for certain jobs with training purposes ($7.25 per hour in 2023).
• Live-in domestic workers. Minimum wage exemptions apply to some live-in domestic workers, but other protections under wage and hour laws still apply.

Additional Nevada Wage Laws

Beyond the Nevada minimum wage, the state has additional wage laws that employers must be aware of to ensure full compliance and fair treatment of employees. These laws cover various aspects of compensation and working conditions.

Here are some key additional wage laws in Nevada.

Overtime

According to Nevada law, employers must pay overtime if an employee works more than 40 hours in a week or 8 hours in a 24-hour period. The regular rate used for calculations (time and a half) encompasses base pay, commissions, and certain bonuses. In addition, for employees in retail, hospitality, and construction exceeding 12 hours in a workday, overtime is calculated at twice the regular rate. However, executive, administrative, and professional employees under certain salary thresholds are exempt from overtime, along with some agricultural and commissioned sales individuals.

Recordkeeping

Employers in Nevada must comply with the following recordkeeping requirements:

• Wage statements. Employers must provide detailed wage statements at the end of every pay period. These statements must include gross earnings, deductions, overtime pay, and net pay.
• Timesheets & records. Employers must maintain detailed records of employee hours, wages, and deductions for audits and potential disputes.
• Retention. Employers must retain wage records for three years after the last payment in case of inquiries or investigations.

Timekeeping

Accurate and compliant timekeeping isn’t just about paying employees fairly; it’s a legal necessity in Nevada.

Specifically, employers must maintain records of:

• Hours worked. This includes all regular hours, overtime hours, paid time off (PTO), and any other authorized absences.
• Start and end times. Employers must clearly document the start and end times of each employee’s shift, especially for those eligible for overtime or double overtime.
• Wage rates. Record regular rates of pay, along with any bonuses, commissions, or other forms of compensation that factor into overtime calculations.
• Deductions. Document any authorized deductions from employee wages, such as taxes, health insurance premiums, or union dues.

Equal Pay

In line with the federal Equal Pay Act, Nevada prohibits unfair pay disparities based on sex or gender for equal work in the same establishment. This is known as pay parity. In addition, employers must ensure pay transparency in job descriptions and wages.

Meal & Rest Breaks

Nevada takes employee well-being seriously, hence its specific laws regarding meal and rest breaks.

This includes the following:

• Employees who work more than 6 hours in a shift are entitled to an uninterrupted 30-minute meal break.
• Employees who work more than 4 hours in a shift are entitled to two 10-minute rest breaks, or one break if the shift is less than 7 hours.
• Breaks are considered hours worked and cannot be deducted from employee pay.
• Employers must be flexible and accommodate employee needs within reason, such as allowing bathroom breaks outside scheduled times.
• Posting clear break policies and scheduling procedures in the workplace is recommended.

Additional Requirements

• Commissioned sales. While these individuals may be exempt from overtime, they must still earn at least the minimum wage based on total pay, including commissions.
• Gratuities. Tipped workers in Nevada have a lower minimum wage ($4.15 as of 2023), but employers must ensure they earn $9.50 per hour with tips, or else make up the difference.
• Child labor laws. Protecting young workers, Nevada restricts working hours and occupations for minors based on age. Familiarize yourself with these regulations to avoid violations.

Wage Law Compliance Best Practices for Employers

To ensure compliance with Nevada’s wage and hour laws, employers must adopt best practices that safeguard the rights and interests of their employees.

These practices include:

• Two-tiered minimum wage structure. Firstly, remember Nevada’s two-tiered minimum wage structure ($10.25 with health insurance, $11.25 without as of July 1, 2023). Make sure you verify employee health insurance status and apply the correct Nevada minimum wage rate to each employee.
• Overtime. Secondly, track employee hours diligently. Overtime (time and a half) kicks in after 40 hours in a week or 8 hours in a 24-hour period. Certain exemptions apply, so familiarize yourself with those.
• Meal & rest breaks. Thirdly, keep in mind that Nevada mandates uninterrupted 30-minute meal breaks for shifts exceeding 6 hours. For shifts extending beyond 4 hours, offer 10-minute rest breaks at reasonable intervals. Make sure you provide clear schedules and designated break areas.
• Deductions. Moreover, remember that only authorized deductions with written employee consent are permitted. Think beyond taxes; gym memberships or loan repayments require clear agreements.
• Final pay. In addition, upon termination, promptly pay all wages due within 3 days (immediately if fired). Provide a detailed wage statement outlining earnings and deductions.
• Timesheets & records. Furthermore, maintain accurate and detailed records of employee hours, wages, and deductions. Aside from ensuring compliance, these records will protect you in the event of audits or disputes.
• Postings & policies. Also, clearly display official Nevada labor law posters and readily accessible company wage policies to keep everyone informed.
• Train your team. In addition, train managers and supervisors on Nevada wage laws and compliance procedures to minimize inadvertent errors.
• Technology. Finally, use payroll software to automate calculations, track records, and simplify complex wage compliance tasks.

How Factorial Can Help You Comply with Nevada’s Wage Laws

Factorial, a comprehensive human resources management platform, can play a pivotal role in helping businesses to effectively comply with Nevada’s wage laws.

Here’s how Factorial can help you manage payroll and navigate the intricacies of wage regulations in “The Silver State”:

• Automatic payroll calculations & compliance. Factorial automatically applies the correct Nevada minimum wage for both tiers based on health insurance. Our payroll software also tracks overtime based on weekly and daily thresholds and handles intricacies like Nevada state holidays and holiday pay.
• Seamless pay periods. Simplify your pay period setup, whether you choose weekly, bi-weekly, or monthly schedules. Factorial ensures timely and accurate payroll processing, so your Nevada employees receive their earnings without delays.
• On-demand pay. Empower your Nevada workforce with optional on-demand pay features. They can access earned wages before the official payday, fostering financial well-being and boosting employee satisfaction.
• Payroll security. Rest assured, your financial data is safe with Factorial’s robust payroll security measures and bank-level encryption. Trust the platform to handle your Nevada employees’ sensitive payroll information with utmost care.
• Electronic time-tracking. Eliminate paper timesheets and embrace accuracy with Factorial’s integrated electronic time clock. This helps you comply with Nevada’s time-tracking legal requirements, reducing the risk of errors.
• Employee record management. Use Factorial’s employee record management software to securely store essential employee information, tax documents, and leave management data securely.
• Comprehensive employee handbook. Finally, use the platform to create a user-friendly, Nevada-specific employee handbook, outlining your company’s wage policies, benefits, and compliance procedures. Keep your Nevada employees informed and engaged.

Factorial is more than just payroll software; it’s your one-stop shop for Nevada wage law compliance. We empower you to focus on building a thriving business while we handle the complex back-office work.