Nevada Minimum Wage 2024

The Nevada Office of the Labor Commissioner has announced updates to the state’s minimum wage, set to take effect on July 1, 2024. Here are the details of the upcoming changes to Nevada minimum wage for 2024!

What Is the Nevada Minimum Wage 2024?

Previously, the minimum wage in Nevada was set at $10.25 per hour for employers offering qualifying health benefits and $11.25 per hour for those that do not. Starting July 1, 2024, the minimum wage for all employers in Nevada will increase to $12 per hour, irrespective of health benefits. This adjustment will also affect the daily overtime rates, except for employees exempt from overtime under NRS 608.018.

For overtime pay calculations, employees earning at least one and one-half times their minimum wage, or $18 per hour, are eligible for overtime pay at one and one-half times their regular rate for the time worked over 40 hours a week. On the other hand, eligible employees who earn less than $18 per hour receive overtime compensation at 1.5 times their regular pay rate, working beyond eight in 24 hours or over 40 hours in a week.

A Historical Overview of Nevada’s Minimum Wage

The Nevada minimum wage has experienced significant changes over the years, reflecting the state’s economic trends and the changing needs of its workers. This history includes several legislative changes, economic fluctuations, and efforts to ensure fair wages for employees.

Below is an overview of the critical developments in Nevada’s minimum wage history.

• 1967: Nevada aligns with the federal minimum wage of $1 per hour.
• 1970s: Nevada gradually raises its minimum wage, reaching $2.65 by 1978.
• 1981: Nevada sets a state-specific minimum wage independent of the federal rate.
• 1989 – 2003: The minimum wage remains around $5.15, a period of relative stability.
• 2004: The state minimum wage is increased to $6.75.
• 2006: Nevada introduces a two-tiered minimum wage system through the Minimum Wage Amendment (MWA), setting wages at $6.85 per hour with health insurance and $7.85 without. The amendment also includes a mechanism for annual adjustments based on the federal minimum wage and inflation.
• 2010 – 2018: The minimum wage rises to $7.25 with health insurance and $8.25 without.
• 2019: Assembly Bill No. 456 mandates yearly increases of $0.75 until the minimum wage reaches $11 per hour for employers providing health benefits and $12 for those not offering them by 2024.
• 2023 and Up-to-date: The two-tier system adjusts to $10.25 with health insurance and $11.25 without. By July 1, 2024, the minimum wage will increase to $12 per hour for all employers, irrespective of health benefits.

Compliance with Wage Laws in Nevada: Essential Points for Employers

Small business owners in Nevada should stay informed about the evolving minimum wage laws to ensure they are prepared for any financial implications on their operations. Owners must evaluate their business category to determine how the varying minimum wages might impact their business and employees.

Firstly, reviewing and auditing business expenses is essential. This allows business owners to adjust and make necessary changes or reductions in response to an increase in the state’s minimum wage rates. Secondly, focusing on hiring the right employees can improve retention, engagement, and productivity.

After hiring, it is important to foster strong relationships with employees, offer opportunities for advancement, and promote effective engagement strategies to retain valuable team members. Lastly, updating business technology can be beneficial. For instance, implementing advanced systems can streamline operations by reducing time spent on administrative tasks, thus allowing more focus on business growth. This approach not only aids in compliance with wage regulations but also enhances overall business efficiency.

Here are some additional things to consider:

1. Overtime Pay Requirements

As previously mentioned, under Nevada law, employers must pay overtime to employees who work more than 40 hours in a week or more than 8 hours in any 24 hours. The overtime pay rate is one and a half times the regular rate, which includes base pay and may also incorporate commissions and certain bonuses. In specific sectors like retail, hospitality, and construction, employees earn double their regular pay for working beyond 12 hours daily.

However, certain job categories, including executive, administrative, and professional roles that meet defined salary thresholds, are exempt from overtime, as are some agricultural and commissioned sales positions.

2. Record-Keeping Obligations

Employers in Nevada must provide detailed wage statements at the end of each pay period, which should list gross earnings, deductions, and net pay, including any overtime compensation.

Furthermore, employers must maintain accurate records of hours worked, wages, and deductions for at least three years after the final payment to manage audits and disputes effectively.

3. Timekeeping and Transparency

Accurate documentation of all work hours—regular, overtime, paid time off, and other absences—is mandatory. This includes recording shifts’ start and end times, especially for employees eligible for overtime, and noting any bonuses or commissions paid. Employers must also be transparent about pay rates in job descriptions and advertisements to avoid potential discrimination.

4. Equal Pay and Non-Discrimination

Nevada adheres to guidelines similar to the federal Equal Pay Act, prohibiting wage discrimination based on sex or gender for equivalent work within the same business. This is part of a broader mandate to ensure fair and equal compensation for all employees.

5. Break Policies

State law mandates that employees working over six hours per shift are entitled to a 30-minute meal break, and those working more than four hours are entitled to two 10-minute rest breaks or one if the shift lasts less than seven hours. These breaks are paid and should not be subtracted from the employee’s total hours worked.

Employers are also advised to accommodate additional needs, such as unscheduled bathroom breaks, and to post their break policies clearly.

6. Specific Considerations for Commissioned Sales and Minor Employees

Employers must ensure that commissioned sales staff earn at least the minimum wage when commissions are accounted for. Compliance with child labor laws, which regulate permissible jobs and working hours for minors, is also crucial to avoid legal repercussions.

Employers in Nevada must adhere to these regulations to ensure fair treatment of employees and prevent any legal issues related to wage and hour laws.

Conclusion

Nevada’s 2024 minimum wage update reflects ongoing efforts to balance fair wages and economic sustainability. Starting July 1, 2024, the uniform minimum wage of $12 per hour for all employers marks a significant shift from the previous tiered system. This change, alongside the state’s comprehensive wage laws, underscores the importance of diligent business compliance.

Employers must adapt by reassessing financial strategies, enhancing employee relations, and updating operational technologies to meet these new requirements effectively. Adhering to these regulations ensures the fair treatment of employees while fostering a stable and compliant business environment in Nevada.

Frequently Asked Questions