Payroll Articles

Employers doing business in Nevada should be aware of statutory wage laws which affect the way business is conducted.

For example, if you have commission-based employees and no commissions are earned during a work week, the employee must be paid at least Nevada’s minimum wage for all hours worked, including any overtime hours. This would mean that in 2011, an employee would earn no less than $8.25 per hour unless qualified health benefits were available, and then the employee would earn no less than $7.25 per hour for all hours worked.

Beware of another Nevada law which falls under NRS 608.10, requiring employers provide seven (7) days written notice to any employee in any classification if the intent is to reduce that same employee’s wage, salary or compensation. Keep in mind that if the organization has a collective bargaining agreement in place, that agreement may trump this statute.

If you happen to be an employer who has minimum wage employees and expect to apply tips toward the employee’s statutory minimum wage, you’re mistaken. Nevada law does not allow tips to be applied as credit toward the payment of the statutory minimum wage. (See NRS 608.160)

An amendment to the Nevada Constitution set up a two-tiered minimum wage system for Nevada. What it boils down to is employers must pay a minimum wage which is the higher of the lower tier state minimum wage or the federal minimum wage. In other words, whatever rate(s) favors the employee. In 2010 and 2011, the minimum wage rates were $7.25 per hour for employees to whom qualifying health benefits were made available by the employer and for all other employees no less than $8.25 per hour apply.

Unlike the federal law and other states, Nevada requires employers under NRS 608.019 permit their employees to take at least one paid 10-minute rest period for every 4 hours worked. Authorized rest periods shall be counted as hours worked, for which there shall be no deduction from wages.