If you’ve ever wondered whether those few minutes before employees clock in really count as work, Nevada lawmakers just made that answer much clearer. After the state Supreme Court’s held on October 30 that Nevada had not adopted the federal Portal-to-Portal Act (PPA) or its limits on compensable working time, the state Legislature immediately responded by passing a measure confirming that employers do not have to pay employees for certain activities performed before or after a shift. The Governor just signed it on November 20 and it took immediate effect. This Insight explains what the Supreme Court decided, why the Legislature took quick action, what this means for your business, and why this issue will continue to matter.
What Did the Supreme Court Decide?
In the Amazon Services, LLC v. Malloy ruling, the Nevada Supreme Court ruled that, unlike federal law, Nevada law does not permit employers to skip paying for certain pre- and post- shift activities.
The court held that, under existing Nevada law, employers must pay for each hour an employee works. There are a few specific exceptions in state statutes, such as those for employee agreements that exempt sleep periods for 24-hour shifts. The Amazon ruling stated that Nevada’s exceptions did not cover the broader types of unpaid work listed in the federal PPA.
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