Compliance Watch:

What are my rights as an hourly employee in Nevada?

Generally, an hourly employee is paid in direct correlation to the total actual hours they have worked in a given workweek, resulting in the fluctuation of their wages on a weekly basis. Hence, to ensure hourly wage workers are accurately compensated, employers typically rely on tools such as timesheet software or time clocks to monitor their working hours. Salaried employees, on the other hand, are given a fixed pay regardless of the number of hours they have worked in a week.

To learn more about Nevada labor laws, you can access our informative guides on understanding the rights of salaried employees in Nevada and how to run payroll in Nevada.

Both state and federal law do not stipulate the maximum working hours an employee is legally permitted to work in a week. In Nevada, all non-exempt employees generally adhere to the Fair Labor Standards Act (FLSA), instead of particular state regulations. With regards to overtime, this Act imposes no restrictions on the number of hours employees 16 years or older may work in a given workweek.

The Fair Labor Standards Act plays a critical role in regulating employee’s time management, hourly rate of pay and overtime payment. Employers must accurately monitor their employees’ working hours to ensure compliance with the provisions of the FLSA regulations.

According to the FLSA, employees who work any hours beyond 40 hours a week are entitled to overtime payment that is one and a half times their regular hourly rate. However, the particulars of overtime may vary depending on the employee’s wage level which is further explained below.

For an hourly employee in Nevada, the minimum wage largely depends on whether the employee is provided with a qualified health benefits plan. The minimum pay in Nevada is $11.25 per hour. The minimum wage increases annually as it is indexed to the rise in living expenses in accordance with the Nevada Constitution. Starting July July 1, 2024, with or without health insurance, minimum wage for all employees will stand at $12.00 per hour in the state.

As for tipped minimum wage, the tipped minimum wage should not be less than the standard hourly wage rate of $10.25 or $11.25 based on the presence of health insurance. Concurrently, employers can establish an agreement for employees to engage in tip pools, whereby tips are distributed among employees, inclusive of those who do not receive tips regularly.

It should be highlighted that there are particular instances where minimum wage law is inapplicable. For example, employees of a nonprofit organization, who are below the age of eighteen, are exempt within the first 90 days of their employment. The same applies to certain jobs, which are listed below:

• Independent contractors
• Executives, administrative workers and professionals
• Casual babysitters
• Outside salespeople, provided their earnings are based on commissions
• Domestic service employees who reside in the household
• Agricultural workers
• Taxicab and limousine drivers

Subminimum wage is a wage that is lower than the regular minimum wage. In Nevada, certain employees such as minors or disabled workers (who have a certificate from the Division of Public and Behavioral Health and Human Services) can be legally paid a subminimum wage. Particular wage rules also apply to young adults below the age of 20 years old and high school or college students who work part-time. However, all other employees, including trainees and apprentices must be paid the standard minimum wage.

With regards to overtime hours and their corresponding payment, Nevada’s labor laws are in general compliance with the Federal legal standard. Hence, all employers in Nevada are required to compensate employees for working additional hours which exceed their regular work hours, that being 1.5 times their regular rate of pay for non-exempt employees. Currently, the hourly overtime pay is $15.38 for minimum-wage employees who have access to health insurance. As for those without health insurance, the hourly overtime rate stands at $14.62.

It is important to highlight that the particular overtime rate is contingent on the employee’s salary level. Therefore, if an employee earns less than 1.5 times Nevada’s hourly minimum wage, the employer is obligated to pay for any hours worked beyond 8 hours in a 24-hour work day, regardless of whether the employee has health insurance or not. On the other hand, if the employee earns more than 1.5 times Nevada’s hourly minimum wage, overtime payment must be compensated to employees who work beyond 40 hours a week independent of their hourly wage.

In Nevada, employers are legally obligated to provide two different types of breaks: meal breaks and rest breaks to all of their employees, including hourly workers. During an 8-hour work shift, employers must grant workers a 30-minute undisturbed meal break throughout that shift and may choose whether or not it will be paid or unpaid. As for rest breaks, these are paid uninterrupted 10-minute breaks that are taken for every 4 hours worked in order to help employees retain their work efficiency throughout the day. The lactating break is a specific type of break applicable to nursing mothers whereby employers must accommodate breastfeeding mothers to take work breaks to expel milk in a secluded, non-bathroom area that is in very close proximity to the workplace. This break may be paid or unpaid depending on company regulations.

Many companies across the US grant employees the privilege to take time off from work to attend to personal matters of their own while still having their employment positions secured. Such leave entitlements are typically arranged between the employer and the employee. The following federal and state laws listed below apply to generally all employees (both salaried and hourly employees) in Nevada:

1. The Family and Medical Leave Act (FMLA): The Family and Medical Leave Act (FMLA) is a federal statute that grants employees 12 weeks of annual job-protected unpaid leave to attend to family and medical-related matters.
2. Senate Bill (SB) 312: The Senate Bill (SB) 312 outlines that Employers with 50 or more employees are obligated to provide a minimum of 0.01923 hours of paid sick leave per hour worked while employers with less than 50 employees are not obligated to offer paid sick leave but are still bound by the FMLA.
3. The Nevada Pregnant Workers’ Fairness Act: This legislation obliges employers with 15 or more employees to grant their workers reasonable accommodation or leave due to pregnancy or childbirth related matters.
4. The Nevada Fair Employment Practices (FEP): The Nevada Fair Employment Practices (FEP) prohibits sex discrimination in employment. It mandates that if an employer grants leave for sickness or disability reasons due to a medical condition, they must extend the same benefits to female employees for pregnancy, childbirth, or related medical reasons to ensure fair treatment.

In the same way as salaried employees, the Nevada Administrative Code (608.160) and the Nevada Wage And Hour Laws (NRS 608) are also applicable to hourly employees in terms of pay deductions. Accordingly, employers are legally disallowed to request their employees to return any fraction of their wage, salary, or earnings unless such deductions are mandated by law or contribute to benefit programs. Thus, deductions from an employee’s paycheck can only happen if the employee’s prior written consent has been sought. This written agreement must indicate the precise amount to be deducted, its intended use, and the date or pay period when the deduction will be made.

A reduction in an employee’s wage, salary, or compensation is only legally permitted if the employer has fulfilled the particular criteria below:

• Issuing a written notice of the reduction to the employee at least 7 days prior to the commencement of work at the reduced rate.
• Complying with the terms stipulated in the collective bargaining agreement or the employment contract between the employer and the employee.

Below is a list of employment entitlements that generally apply to all employees, including Nevada hourly employees:

• Minimum Wage: Employees are entitled to be paid the state minimum wage of $10.25 per hour for those with health insurance and $11.25 per hour for those without health insurance. 
• Overtime: In adherence to the Fair Labor Standards Act, hourly employees are entitled to receive overtime compensation fixed at one and a half times their regular hourly wage for any hours worked beyond 40 hours in a workweek. In Nevada, employees with access to health insurance have an hourly overtime rate of $15.38 and those without health insurance have an overtime rate of $16.88.
• Child Labor Protections: Minors are individuals who are aged 18 and below. In Nevada, such minors are protected under both state and federal law from work exploitation. These laws strongly emphasize on the importance of education for minors, forbid them from working in hazardous positions, and restrict them in terms of work hours, night work and particular occupations.
• Paid Sick Leave: Hourly employees accumulate a specific amount of annual paid sick leave which can be utilized to offset lost wages alongside unpaid leave taken under the Family and Medical Leave Act (FMLA). However, in accordance with the Mandatory Paid Leave legislation, employees working in the private sector with over 50 employees are given mandatory paid sick leave whereby full-time employees receive 40 hours of paid sick leave while part time employees receive 0.01923 hours for every hour worked.
• Domestic Violence Leave: If an hourly or salaried employee falls victim to domestic or sexual abuse, they are entitled to Domestic Or Sexual Assault leave. Employees are only eligible for such leave if they have worked for the employer for at least 90 days. With this leave, workers can utilize up to 160 hours per year attending to particular needs and arrangements such as seeking medical treatment, counselling and engaging in legal proceedings.
• Equal Pay: Both the federal Equal Pay Act (EPA) and its corresponding Nevada Statute, NRS 608.017 legally require employers to offer equal pay to both male and female employees working the same job with significantly similar roles within the same workplace. Establishing this equality is founded on the basis of the nature of work rather than job titles. The federal Equal Employment Opportunity Commission (EEOC) is responsible for the enforcement of the EPA.
• Other Obligatory Time-Off Provisions: The laws of Nevada mandates employers to grant several other obligatory leaves for hourly employees to address personal matters as well as state-related obligations. These leaves are as follows:

1. Witness leave: An employee cannot be discharged or threatened to be discharged for appearing as a witness and must be provided leave to do so.
2. Voting leave: Employees, who are registered voters, are entitled to paid leave to vote if voting is not feasible to be done before or after their work hours.
3. Jury duty leave: Employers must provide unpaid leave to employees serving on a jury. Employees are required to show their jury summons to be granted leave and cannot use their sick or vacation leaves to observe their jury duties.
4. Military leave: The federal Uniformed Services Employment and Reemployment Rights Act (USERRA) entitles employees who are members of the armed forces to take unpaid leave to serve the military 
5. Vacation leave: Employers with 50 or more employees are obligated to provide at least 0.01923 hours of paid leave per hour of work done.
6. Parental leave: Employers with 50 or more employees must grant four hours of leave per child for employees to attend to child-related activities.

1. Violations reporting: Nevada’s Whistleblower protection laws safeguards an employee’s freedom to report workplace violations, without fearing the consequential loss of their employment or the confrontation of any legal repercussions. However, these laws are applicable to organizations that employ 15 or more employees.
2. Workplace safety: In relation to employee safety, Nevada employers are obligated to comply with both federal law, specifically the Occupational Safety and Health Act (OSHA), as well as the additional rules under the Nevada State Plan. Adherence to both of these sets of regulations ensures that employees are free of workplace safety hazards and provided with adequate safety training in working conditions that are regularly inspected by employers.
3. Termination of employment: Upon the termination of employment, employers in Nevada must observe the relevant provisions concerning final compensation. According to the Nevada Revised Statutes (NRS 608.020 to 608.040), an employee who has ended their employment is required to receive their final wages within 7 days of their termination or by the upcoming pay day (whichever occurs sooner), and a discharged employee must receive their final compensation within 3 days of termination.
4. Discrimination and harassment: Nevada forbids employers to engage in workplace discrimination of employees on the basis of religion, sex, race, color, national origin, age and disability.
5. Protection of minors: All employers in Nevada must ensure the rights regarding the employment of minors are safeguarded to prevent exploitation within the workplace.

Much like other states across the US, Nevada adopts the ‘employment-at-will’ policy for all of its employees. This means that employers possess the flexibility to terminate the employee’s contract at any time, without having to disclose their reasons for doing so. Similarly, employees have the freedom to resign from their positions for any or no reason without being subjected to legal repercussions.

However, it must be emphasized that under federal law, employers are disallowed from terminating an employee’s contract for unlawful reasons that would amount to workplace discrimination. Such discriminatory reasons, under both federal and state legal standards, include:

Workplace discrimination: In this aspect, the Wisconsin Fair Employment Law prohibits employers from discriminating their employees by wrongfully terminating them based on the their protected characteristics which comprise of their:

• Age
• Race
• Color
• Gender
• Sexual orientation
• Religion
• National origin
• Pregnancy
• Genetic information (including family medical history)
• Physical or mental disability
• Child or spousal withholding
• Military or veteran status
• Citizenship and/or immigration status
• Use of lawful products off the premises and outside of work hours
• Use of service animal
• Opposing unlawful employment practices
• Credit report or credit information

Furthermore, Nevada has a unique statute that further protects employee’s rights. Particularly, employers are prohibited from terminating an employee’s contract based on the report of a detective or special agent without first giving prior notice and an impartial hearing to the accused employee.

In addition, Nevada’s laws mandate employers to grant terminated employees a final paycheck which comprises all unpaid wages and accumulated benefits. The timing of the last paycheck is contingent upon the basis of whether the employee has resigned voluntarily or was terminated, but it must be granted within 7 days or by the forthcoming payday, whichever happens earlier.

Severance pay is the payment made by an employer to an employee when they have been terminated from their employment. In Nevada, both hourly and salaried employees are entitled to receive severance pay. However, it should be borne in mind that Nevada employers are not legally required to offer their employees severance pay, but should they decide to do so, the terms of the employment contract must be strictly adhered to.