Many employers with business operations in Nevada are aware by now that Assembly Bill 456, enacted in June 2019, increases the minimum wage in increments of 75 cents annually on July 1 of each year through 2024. Thus, beginning on July 1, 2022, the Nevada minimum wage rate for employees who are not offered “qualified health benefits” under the state’s two-tiered minimum wage system will increase to $10.50 per hour. The minimum wage rate will increase to $9.50 per hour for employees who are offered such qualifying benefits. (See below for details on the tiered minimum wage system and when an employer can pay the lesser amount.)
Nevada employers may want to note that an increase in the minimum wage rate brings an automatic increase in the daily overtime rate as well. Given the July 1, 2022, minimum wage rate of $10.50 per hour, Nevada employers that pay their employees less than $15.75 per hour (or $14.25 per hour for employers that offer qualified health benefits) must pay employees daily overtime for time worked over eight hours in a workday or forty hours in a week. Nevada Revised Statutes section 608.0126 defines “workday” as “a period of 24 consecutive hours which begins when the employee begins work.” This is different from the typical twenty-four-hour period in a calendar day. Employees earning more than 1.5 times the applicable minimum wage are not required to be paid daily overtime, but they are entitled to overtime pay for hours worked over forty in a week. The...
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