Nevada Overtime Laws: All You Need to Know in 2024

“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.

For individuals earning less than one and one-half times the minimum wage in Nevada, employers are mandated to provide overtime compensation for hours worked beyond 8 in any 24-hour period. This requirement is applicable to those earning less than a specific threshold, which, starting July 1, 2024, will be adjusted to apply to employees making less than $18.00 per hour. The criterion for overtime eligibility also encompasses scenarios where employees, regardless of their hourly earnings, work more than 40 hours within a week, aligning with stipulations under the Fair Labor Standards Act.

Nevada’s approach to overtime laws distinguishes itself by including daily overtime stipulations in addition to the conventional weekly overtime considerations found in many other states. Overtime pay is calculated at 1.5 times the regular hourly rate for employees, applicable to both cases of exceeding 40 weekly hours or 8 daily hours within a 24-hour timeframe.

An important update for 2024 is the introduction of a unified minimum wage rate of $12.00 per hour for all employees, effective from July 1, 2024. This update follows the approval of Ballot Question 2 during the 2022 General Election, which resulted in the elimination of the two-tier minimum wage system previously based on whether employees received qualifying health benefits.

The Nevada Office of the Labor Commissioner, responsible for announcing annual adjustments, has indicated these changes as part of ongoing efforts to align wage practices with inflation and legislative updates. This ensures that employees receive fair compensation for overtime, irrespective of their earning bracket, and simplifies the wage structure across the board for easier compliance and understanding among employers and employees.

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.

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.

Related: 5 Ways Shift Scheduling Software Can Grow Your Bottom Line

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.

Have questions about how you can maximize your business through more effective scheduling and team management strategies? Let us help you today!

FAQs about Nevada Overtime Laws

How Much is an Hour of Work Paid in Nevada?

As of February 6, 2024, job positions in Nevada offer an average hourly compensation of $19.211. This estimate is closely matched by the hourly earnings in Las Vegas, Nevada, recorded at $19.07 on December 13, 2023. An alternative calculation presents the average hourly income in Nevada as $22.91, equivalent to an annual salary of $47,652. These numbers, however, are subject to fluctuations depending on the job role, the sector, and the specific area within Nevada. Furthermore, Nevada’s minimum wage is anticipated to reach $12.00 per hour by 2024 for workers who do not receive qualifying health benefits.

Who is Exempt From Nevada Overtime Laws?

In Nevada, the Nevada Revised Statutes (NRS) 608.018(3)(d) outline exemptions from overtime laws for specific employee groups. Exempt categories include those working in true executive, administrative, or professional roles. Professionals, in this context, are those with state licenses or certifications in Nevada, practicing law or in fields governed by chapters 623 to 645, 645G, and 656A of the NRS, encompassing a broad array of professions from architects and engineers to healthcare providers and therapists.

Furthermore, exemptions extend to outside salespeople, independent contractors, workers under a collective bargaining agreement with alternate overtime provisions, employees in retail or service sectors earning at least 1.5 times the minimum wage with over half their earnings from commissions, and certain employees in the transportation sector (drivers, driver’s helpers, loaders, mechanics) governed by the federal Motor Carrier Act.

Additionally, white-collar employees earning at least $648 weekly are exempt from overtime. This category includes individuals in outside sales, administrative, executive, and professional jobs. Other specific exemptions cover railroad or airline workers, certain motor carrier employees, taxi and limousine drivers, car salespeople and mechanics, farm laborers, and employees of businesses grossing less than $250,000 annually.

Eligibility for the executive, administrative, or professional exemptions also demands compliance with the federal Fair Labor Standards Act and associated regulations, emphasizing both the salary threshold and specific job responsibilities.

How is the Nevada Wage System Different from Other U.S. States?

In Nevada, the minimum wage is determined by a dual-level system, hinging on whether employees are provided with a qualifying health benefit plan by their employers. Employers who offer such benefits pay a minimum wage of $9.50 per hour, while those who do not offer these benefits pay $10.50 per hour. This structure is scheduled for discontinuation on July 1, 2024, transitioning to a uniform minimum wage of $12.00 per hour for all employees.

The approach to overtime compensation in Nevada also stands out. Employees earning less than 1.5 times the minimum wage qualify for overtime pay for hours worked beyond 8 in a single 24-hour period. In contrast, those earning above this threshold receive overtime pay only for hours worked in excess of 40 in a week, diverging from the federal guideline that generally mandates overtime pay for hours beyond 40 in a week, without a daily calculation.

Nevada’s payment regulations require employers to disburse wages to their employees at a minimum of twice per month, a practice not universally mandated across all states.

Regarding the issuance of final paychecks, Nevada has distinct timelines based on the nature of employment termination. Employees who resign must be paid within seven days or by the next regular payday, whichever comes first. In cases of termination by the employer, the final wages are due within three days.

Workers in Nevada are guaranteed a 30-minute unpaid meal break for every 8-hour work period.

Additionally, Nevada law prohibits employers from deducting the cost of uniforms from employees’ wages and mandates that larger companies (with 50 or more employees) provide paid leave, accruing at a rate of 0.01923 hours of paid leave for every hour worked.