As an employer in Nevada, understanding the state’s overtime laws is crucial in ensuring fair compensation for your workforce. Nevada overtime rules are designed to protect the rights of employers and employees, but employers have compliance obligations that they must fulfil. These overtime laws ensure employers follow the federal and state-mandated rules regarding overtime and accurate wages.
This article will explore Nevada overtime pay laws, helping employers understand the wages and overtime calculations, avoid potential legal pitfalls, and foster a positive work environment.
Table of Contents
Minimum Wages and Hours in Nevada
As of 2024, Nevada follows a tiered system of minimum wage. The rate depends on whether employers offer qualifying health benefits.
If the employees are offered health benefits, their minimum wage must be $10.25 per hour. If they are not offered qualifying health benefits, they should be paid $11.25 per hour as minimum wage.
It’s important to note that these are minimum wage rates, and employers can offer more than these rates, just not less. In addition, the standard workweek in Nevada is defined as 40 hours. A work week is usually 5 days, 8 hours a day shift. Any work performed beyond this threshold is subject to overtime pay.
What are Nevada's Overtime Pay Laws?
Nevada law on overtime mandates that employers must pay to compensate eligible employees for any hours worked beyond 40 in a workweek at a rate of 1.5 times their regular hourly wage. This is commonly referred to as “time and a half.” For example, if an employee’s regular hourly rate is $15, their overtime rate would be $22.50 per hour ($15 + $7.50).
The overtime pay laws in Nevada follow the federal guidelines and require employers to pay overtime for any hours worked over 40 in a workweek. In some industries like retail and hospitality, overtime may apply to hours over 8 in a single workday. Additionally, employers must keep accurate records of all hours worked by non-exempt employees.
What are the Overtime Rates in Nevada?
As mentioned, Nevada employers are required to follow the tiered minimum wage.
Therefore, the overtime rates in Nevada as of 2024 are also tiered.
For employees receiving the lower tier minimum wage (with health benefits), the minimum wage rate is 1.5x $10.25 = $15.38 per overtime hour.
For employees receiving the higher tier minimum wage (without health benefits), the minimum wage rate is 1.5 x $11.25 = $16.88 per overtime hour.
These overtime rates apply to all non-exempt employees. Please note that these rates are for workers paid at the minimum wage level. For employees earning above minimum wage, their overtime rate would be 1.5 times their regular hourly rate.
Industries most affected by the Nevada Overtime Law
Effective July 1, 2024, Nevada overtime laws are updated to include all employees earning less than $18 per hour to be eligible for overtime. Some industries are more affected by changes in Nevada overtime laws than others. While the labour laws in Nevada overtime apply to all industries, there is a varying level of impact; let’s find out.
Retail and Fast Food
These industries have a diverse workforce and often hire employees to meet season demands and rush hours. The law’s increased salary threshold for overtime eligibility has not made many more earning staff eligible for overtime pay. It requires employers in these industries to adjust scheduling or compensation practices.
Hospitality
Similarly, in the hospitality sector, many salaried employees, particularly in supervisory roles, may now be eligible for overtime. Its impact will be on hotels, restaurants, and other businesses in the sector.
Small Businesses
The new changes in the Nevada overtime laws now provide exemptions for businesses grossing less than $250,000 annually. It has raised concerns among non-exempt small companies that may have to bear increased labor costs due to overtime pay.
Employers in these industries should be especially vigilant in tracking hours and ensuring proper overtime compensation.
State and Federal Statutes for Nevada Overtime
Nevada overtime laws are a culmination of both state and federal statutes. Employers must be aware of both to be compliant.
Nevada Statutory Bodies
- Nevada Revised Statutes (NRS) Chapter 608 is the group of the basic overtime provisions in Nevada that all employers must follow. It outlines the overtime pay requirements, including the pay rate, eligibility criteria, and exemptions.
- Another state provision is the Nevada Administrative Code (NAC) Chapter 608, which provides additional regulations and interpretations of the NRS provisions. It provides clear guidance to employers and employees on how to comply with the Nevada law on overtime.
Federal Statutes: Fair Labor Standards Act (FLSA)
The FLSA is the primary federal law that governs the minimum wage, overtime pay requirements, child labor standards, and record-keeping requirements for employers throughout the United States.
The FLSA states that every non-exempt employee is eligible for overtime for hours worked over 40 in a workweek. Also, the overtime rate cannot be less than one and a half times their regular wage rate. The federal statute also outlines exemptions for certain employees and industries from overtime requirements.
While Nevada has its overtime laws, it must comply with the minimum standards set by the FLSA.
Eligibility for Overtime in Nevada
Here are the criteria for various workers under the Nevada overtime laws:
Blue-collar workers
Generally, most blue-collar workers are eligible for overtime pay. They are typically paid 1.5 times their regular hourly rate for overtime hours.
White-collar workers
Some white-collar workers may be exempt from overtime pay if they meet specific criteria related to their job duties and salary level. For instance, salaried employees earning over $684 per week are not eligible for overtime under Nevada overtime laws. All eligible white-collar workers are paid 1.5 times their regular wage rate.
Professions eligible for overtime include:
- Retail sales associates
- Restaurant staff
- Construction workers
- Manufacturing employees
- Administrative assistants
- Customer service representatives
- Maintenance workers
- Security guards
Some additional eligibility requirements for white-collar employees may include:
- Being paid hourly rather than a salary
- Not having significant managerial responsibilities
- Not exercising independent judgment in job duties
Unauthorized Overtime and Requirements
Nevada gives employers the right to take action against unauthorized overtime. However, employees must be paid if they work overtime, even when it is unauthorized.
To prevent unauthorized overtime, employers should implement clear policies prohibiting it. Managers and supervisors must be trained to monitor and control employee hours effectively. Companies can use time-tracking systems like Truein to record all hours accurately worked and promptly address violations of overtime policies.
Who is not entitled to overtime pay?
A few categories of employees are exempt from overtime pay entitlements. Employers don’t have to pay overtime pay to these employees:
- Executive employees
- Administrative employees
- Professional employees
- Computer professionals earning over $684 per week
- Outside sales employees
- Some transportation workers
- Certain agricultural workers
Compliance with State and Federal Laws
Misclassification of employees to prevent them from overtime can result in heavy penalties and fines. Employers must ensure that employees classified as exempt meet all criteria under both Nevada state law and the FLSA. In scenarios where state and federal laws differ on overtime exemption, the law most beneficial to the employee typically applies.
Company-specific policies regarding exempt employees
Employers can have additional policies regarding overtime exemption as long as they abide by the state and federal laws. However, employers must define exempt positions in job descriptions to implement company-specific. These policies must be regularly reviewed to ensure the exempt classifications meet ongoing compliance. Train managers on proper classification and treatment of exempt employees based on company policies. Furthermore, a process for employees to request a classification review should be implemented.
Flexible Work Arrangements and Overtime Considerations
Overtime rules and calculations are more straightforward when employers stick with the traditional scheduling models. However, flexible work arrangements, such as compressed workweeks, flextime, and remote work, have become increasingly common in Nevada workplaces. This requires employers to understand how overtime works with flexible work arrangements.
Overtime Implications of Flexible Work Arrangements
Flexible work schedules can require changes to how work hours are tracked within the organization. Compressed workweeks can also alter the schedule when daily overtime applies, such as working over 8 hours a day. If it involves remote work, it may lead to “off-the-clock” work that must be compensated.
Establishing Overtime Policies for Flexible Work
If you offer a flexible work schedule, all the policies regarding overtime are expected to be communicated, including expectations for work hours and overtime. Enable your organization to track all hours accurately worked using time and attendance systems like Truein, including remote work. Establish and implement protocols for approving overtime in flexible arrangements.
Compliance Considerations
- Using cloud-based tools, ensure all work time is recorded, regardless of location
- Apply overtime rules consistently across all work arrangements
- Regularly review flexible work policies to ensure compliance with changing laws
Overtime Calculation for Salaried Employees
Overtime calculation for non-exempt salaried employees in Nevada is simple. It is calculated by simply calculating the regular hourly rate by dividing the weekly salary by 40 hours. Then, pay 1.5 times the regular wage rate for overtime hours.
Assume a salaried employee earning $800 per week who works 45 hours in a workweek.
Regular hourly rate: $800 / 40 = $20 per hour
Overtime rate: $20 x 1.5 = $30 per hour
Overtime pay: 5 hours x $30 = $150
Total weekly pay: $800 + $150 = $950
Overtime Calculation for Hourly Employees
For hourly employees, identify the regular hourly rate by dividing the earnings by the number of hours worked. Pay 1.5 times this rate for hours worked over 40 in a workweek.
If an employee earning $15 per hour who works 48 hours
Regular pay: 40 hours x $15 = $600
Overtime rate: $15 x 1.5 = $22.50
Overtime pay: 8 hours x $22.50 = $180
Total weekly pay: $600 + $180 = $780
Overtime Calculation for Commission-based Employees
For commission-based employees, employers have to consider the earnings through bonuses when calculating overtime based on these rules:
- Calculate the regular rate by dividing total earnings (including commissions) by total hours worked
- Pay 0.5 times this rate for overtime hours (since commissions have already compensated for the “regular” portion of overtime)
Suppose an employee who earns $1000 in commissions and works 50 hours
Regular rate: $1000 / 50 = $20 per hour
Additional half-time for overtime: $20 x 0.5 = $10
Overtime pay: 10 hours x $10 = $100
Total weekly pay: $1000 + $100 = $1100
Overtime Calculation for Piecework Employees
Piecework employees in Nevada work on project-based assignments. The overtime calculation for these workers is based on the regular rate derived by dividing total earnings by total hours worked. Then overtime is paid 1.5 times this rate for overtime hours.
Example: An employee who earns $900 for piecework and works 45 hours
Regular rate: $900 / 45 = $20 per hour
Additional half-time for overtime: $20 x 1.5 = $30
Overtime pay: 5 hours x $30 = $150
Total weekly pay: $900 + $150 = $1050
Overtime Laws for Tipped Employees
In Nevada, tipped employees are subject to the same overtime laws as other employees. However, the calculation can be more complex:
- Ensure the employee’s total earnings (including tips) meet or exceed the minimum wage
- Calculate the regular rate based on total earnings divided by hours worked
- Pay overtime at 1.5 times this regular rate
Calculating Bonuses in Overtime
Nevada overtime laws require that non-discretionary bonuses be included in the regular rate calculation for overtime purposes.
The calculation means that employers allocate the bonus amount to the period it covers (e.g., weekly, monthly) to derive the regular rate, including the bonus. The new overtime rate is calculated by factoring the bonus for the period.
For example, an employee works 50 hours at $15/hour and receives a $100 weekly production bonus:
Original overtime pay: 10 hours x ($15 x 1.5) = $225
New regular rate: ($15 x 50 + $100) / 50 = $17/hour
New overtime rate: $17 x 1.5 = $25.50
Additional overtime due: 10 hours x ($25.50 $22.50) = $30
Compensatory Time Off in Nevada
Compensatory time off in Nevada can only be offered by public-sector employers. The state prohibits private employers from providing compensatory time off (comp time) instead of overtime pay. Any attempt to provide comp time against overtime pay will be termed a violation of the rule.
Penalties for Misclassifying Employees and Non-compliance
Depending on the degree of non-compliance severity, Nevada employers can face the following penalties for misclassifying employees.
- Required to pay back wages, including payment of all unpaid overtime
- Liquidated damages for each violation in addition to the amount of the unpaid overtime
- Civil penalties of up to $1,000 per violation
- Criminal penalties for proven willful violations
- Payment of employee’s attorney fees in successful claims
Tips to Make Sure You Comply with the Labor, Wages & Overtime Pay Regulations
Here are some best practices to ensure compliance:
- Regularly review and update job descriptions to ensure that employees are correctly classified
- Implement accurate time-tracking systems for all non-exempt employees using software tools
- Train managers and supervisors on overtime policies and proper timekeeping
- Conduct regular audits of payroll practices to ensure overtime is paid accurately
- Stay on top of changes in state and federal labor laws
- Communicate work schedules and overtime expectations
- Consider implementing rotating shifts to distribute overtime among employees fairly
- Use scheduling software to manage complex shift patterns and monitor overtime
How can Truein help with Overtime Pay Management?
Truein is a cloud-based time and attendance system with advanced overtime tracking and management. It automates tracking the number of hours worked while adhering to the overtime policies set by the employer.
It can send real-time overtime alerts to managers, making overtime tracking easier. It has over 70 customizable policy templates that employers can customize according to their policies. It also integrates with payroll systems, facilitating accurate overtime calculations.
By utilizing Truein’s software, employers can reduce the risk of overtime violations, streamline payroll processes, and ensure accurate employee compensation.
“Get centralized and foolproof Time & Attendance for your organization”
Book a Free Demo Now
Conclusion
Nevada overtime laws lay down the policies and guidelines for employers to follow while ensuring compliance with laws regarding minimum wage tiers, overtime calculations, specific requirements for different industries, and penalties employers can face.
As labor laws continue to evolve, employers in Nevada must remain vigilant and adaptable to ensure they meet all legal obligations while maintaining operational efficiency.
FAQs
1. Who is eligible for overtime pay in Nevada?
Most non-exempt employees in Nevada are eligible for overtime pay, including hourly workers and salaried employees, such as computer professionals, earning less than $684 per week. Eligible workers generally have non-managerial roles and do not exercise significant independent judgment. Retail workers, restaurant staff, construction workers, and administrative assistants are some examples of employees eligible for overtime in the state.
2. What is the overtime pay rate in Nevada?
Nevada is one of the few states that follow a tiered overtime pay rate. The regular overtime pay rate is 1.5 times the employee’s hourly rate, commonly known as “time and a half.” Overtime rate applies to hours worked over 40 in a workweek. For employees earning minimum wage, the overtime rates as of 2024 are $15.38 per hour for those receiving health benefits and $16.88 per hour for those not receiving health benefits.
3. What is the hourly wage rate in Nevada?
As of 2024, Nevada has a two-tier minimum wage system. For employers who offer qualifying health benefits, the minimum wage is $10.25 per hour in the state, while for employers who do not offer qualifying health benefits, the minimum wage is $11.25 per hour.
4. Who is not covered by Nevada’s overtime regulations?
Several categories of employees are exempt from Nevada’s overtime regulations. These typically include executive, administrative, and professional employees who meet specific salary and job duty requirements. Other exempt categories include certain computer professionals, outside sales employees, and some transportation workers. Employers should carefully review state and federal exemption criteria, as misclassification can have significant legal and financial consequences.
5. How does Nevada’s wage system differ from other states in the U.S.?
Nevada’s wage system is unique from other U.S. states in several ways. First, the state maintains a two-tier minimum wage system based on whether employers offer qualifying health benefits. Additionally, Nevada’s overtime laws are more generous than federal standards in some respects, such as potentially requiring daily overtime for hours worked over 8 in a day, which is not a federal requirement.
6. Limits on Overtime Hours in Nevada?
Under Nevada’s overtime laws, no specific limits exist on the number of overtime hours an employee can work. However, employers must pay the appropriate overtime rate for all hours worked over 40 in a workweek and sometimes for hours over 8 in a day. Employers must ensure workers do not face fatigue and safety concerns when scheduling extended hours without any legal maximum-hour limit.
7. Is overtime pay mandatory in Nevada?
Yes, overtime pay is mandatory in Nevada for all eligible employees. Employers are required by law to pay overtime at a rate of 1.5 times the regular hourly rate for hours worked over 40 in a workweek. Nevada law also requires daily overtime pay in some situations, such as for hours worked over 8 in 24 hours, unless the employee agrees to a different schedule.
8. What is the penalty for failing to pay overtime in Nevada?
Nevada overtime laws have strict penalty policies for employers found violating these laws. The Nevada Labor Commissioner can impose fines of up to $1,000 per violation. Additionally, guilty employers may be required to pay back wages for all unpaid overtime plus an equal amount in liquidated damages. In cases of willful violations, criminal penalties may apply.
