Nevada is the second state in the United States after Maine to make paid time off (PTO) mandatory for private employers. As of 2024, Nevada PTO law states that every employer with 50 or more employees must provide 0.01923 hours of paid leave for every hour the staff works. It also clearly states that employees can use this earned PTO for any reason.
Nevada employers must navigate the evolving landscape of employee rights and benefits and stay on top of the latest PTO regulations. To assist employers, we have created this guide on Nevada PTO law to ensure they know everything necessary for legal compliance and to create fair and beneficial policies, enhancing employee satisfaction and retention.
Table of Contents
Mandatory Paid Leave for Large Employers
Nevada passed Senate Bill (SB) No. 312, which enacted the law that all large employers (with 50 or more employees) must provide mandatory paid leave. This regulation is part of a broader effort to ensure workers have adequate time off for health, wellness, and personal matters.
The law only applies if an employer has 50 or more employees; all small businesses are forfeited from the law. Furthermore, the earned paid time off under this law provides employees the right to use time off for any reason and not just medical needs.
Therefore, employers must strategically implement these
regulations to minimize operational disruptions while maximizing the benefits of a well-rested and satisfied workforce.
Eligibility and Exemptions
Under Nevada PTO law, all employees are covered except on-call workers, temporary staff, and seasonal workers. The law also applies to part-time workers, and all employees of large employers are eligible for paid leave.
There are some other exemptions as well. All new employers are exempted from the Nevada PTO law for the first two years. Therefore, they are not required to provide any paid time off to their employees, irrespective of their business size. Also, employers that offer 40 hours of PTO annually are not required to follow the mandatory paid leave policy.
While the law broadly covers many workers, the exemptions are still unclear, and employers are recommended to seek legal counsel when creating employment policies, depending on the nature of their job or industry. Employers must carefully review these exemptions to determine the law’s applicability to their staff accurately.
Accrual Rate and Cap
Nevada PTO laws, as of 2024, employers must provide eligible employees 0.01923 hours of paid leave for each hour of work. Employees accrue paid leave at no less than one hour for every 52 hours worked. It is a straightforward accrual rate for employers to calculate and manage paid leave.
While employees accrue leave over time, there are cap limits that employers can put. Employers can limit the paid leave an employee can accrue in a year to 40 hours. Furthermore, employers can provide 40 hours of paid time off at the beginning of the year or let employees accrue PTO.
Understanding and setting these caps by legal guidelines is essential for employers. It helps in maintaining a balance between providing fair employee benefits and managing business operations effectively. The common accrual cap is for 40 hours of accrued PTO. Still, some employers may set higher or lower limits depending on employee tenure, job classification, and industry norms.
Waiting Period and Rollover
Employers in Nevada can implement a waiting period before new employees can use paid leave. They can set a waiting period of 90 days for employees before they can use the earned PTO for any reason. The company’s leave policy must clearly define the waiting period to maintain transparency.
Nevada allows employers to assert a “use or it lose it” policy requiring employees to use their earned PTO within the year. However, employees can roll over 40 hours of accrued PTO from one year to the next. The Nevada PTO law offers employers the discretion to set their policies. This includes deciding whether to allow the rolling over of unused leave and, if so, how much. Employers must judiciously establish these policies, considering the legal requirements and the implications for employee satisfaction and retention.
Payment and Recordkeeping
In Nevada, employers must ensure employees are compensated for their accrued paid time off at their regular pay rate. Additionally, employers should ensure that employees receive proper information regarding how their PTO is calculated.
Accurate recordkeeping is also essential for compliance with Nevada PTO law. According to the Section 5 of NRS 608.0197 all employers in Nevada are required to maintain detailed records of accrued and used paid leave for each employee for at least a year.
Sick Leave
Nevada has federal and state laws regarding sick leave for employees. The state follows the federal Family and Medical Leave Act (FMLA), which allows eligible employees 12 weeks of unpaid sick leave. To qualify for sick leave under FMLA, an employee must meet the following criteria:
- Employees must work for a covered employer with 50 or more employees, public agencies, and local educational agencies.
- Employees must have worked for the employer for at least 12 months or at least 1,250 hours last year.
Also, unlike PTO in Nevada, which can be used as sick leave, any time off under FMLA should be used only for medical emergencies affecting the employee or their family members.
FMLA allows eligible employees to take unpaid leave for the following reasons:
- Serious Health Condition: To address employees’ own severe health conditions that render them unable to perform essential job functions.
- Family Member’s Serious Health Condition: To care for a spouse, child, or parent with a severe health condition.
- Birth or Adoption: For a child’s birth, adoption, or foster care placement.
- Qualifying Exigency: Employees with family members serving in the military can take FMLA leave for qualifying exigencies related to the military member’s covered active duty or call to covered active duty status.
Maternity, Paternity, and FMLA Leave
Nevada has both federal and state laws for maternity and paternity leave requirements. Maternity leave allows eligible employees to take time off from work due to pregnancy, childbirth, or related medical conditions. While Nevada does not have state-specific maternity leave laws, eligible employees may qualify for unpaid leave under the federal FMLA. FMLA provides eligible employees in the state with up to 12 weeks of unpaid, job-protected leave for the birth and care of a newborn child, including prenatal care and recovery from childbirth.
Like maternity leave, paternity leave rights are governed by FMLA, which provides eligible employees with up to 12 weeks of unpaid, job-protected leave for fathers and non-birthing parents to actively participate in the early stages of their child’s life and support their family’s well-being.
Nevada also follows the Pregnancy Discrimination Act (PDA), ensuring that no employee is discriminated against at the workplace due to pregnancy, childbirth, or related medical conditions.
The Nevada Pregnant Workers Fairness Act
All employers with 15 or more employees must provide their workers with reasonable accommodation or leave to deal with childbirth or other conditions related to pregnancy. It applied to each working day of the 20-week pregnancy.
The Nevada Fair Employment Practices (FEP)
The Nevada Fair Employment Practices Act is designed to promote fair and equal treatment in the workplace. It prohibits discrimination in employment based on race, color, religion, sex, sexual orientation, gender identity or expression, age, disability, or national origin. This act is enforced by the Nevada Equal Rights Commission (NERC) and is crucial for employers to understand as it impacts all aspects of employment, including PTO policies.
Bereavement Leave
Nevada PTO law does not mandate bereavement leave for employees. Still, many employers offer it as part of their comprehensive leave policies, allowing up to 2 days of unpaid leave. Bereavement leave typically allows employees to take time off for the death of a close family member.
Jury Duty Leave
In Nevada, employers are legally required to provide time off for employees called to serve on jury duty. Employees should be allowed to fulfill their civic responsibilities without fear of losing employment or facing retaliation. Private employers are not required to pay employees for jury duty time off. Such employees are paid a juror fee of $40 a day.
Employers can ask employees to provide advance notice up to 3 days before jury duty. Also, employees cannot be made to use their sick leave or vacation time to fulfill their jury duty.
Military Leave in Nevada
Nevada adheres to both federal and state laws regarding military leave. The federal Uniformed Services Employment and Reemployment Rights Act (USERRA) governs military leave, ensuring that service members who leave their civilian jobs for military duty can return to their jobs with the same pay, benefits, and status.
Under USERRA, employers must ensure that service members receive group healthcare benefits for up to 24 months when on active duty. Also, military leave is unpaid and can be up to 5 years, depending on the requirement. Upon returning from military leave, employees in Nevada are entitled to be reinstated to their former job or a comparable position. This includes the preservation of seniority, pension rights, and other benefits.
Members of the Nevada National Guard are provided the same protections as under USERRA by the state law on military leave.
The state law prohibits discrimination and retaliation against employees who take military leave. This includes any adverse employment action like demotion, pay reduction, or unwarranted disciplinary action.
Voting Leave
Nevada law encourages civic participation by providing voting leave for employees. Employers are required to give employees 1, 2, or 3 hours of paid time off to vote. The duration depends on the distance between the workplace and the polling station.
If the distance is less than 2 miles, an hour of paid time off must be provided; two hours of paid time off should be provided if the distance is 2 to 10 miles, and if it’s more than 10 miles, 3 hours of paid time off should be given to vote.
This duration is required to ensure that employees can exercise their voting rights without fear of losing wages or facing job repercussions.
State Holidays
There are 12 state-recognized holidays in Nevada, but private employers are not required to provide paid or unpaid holidays. Here is a complete list of holidays in Nevada in 2024:
| Holiday | Observed in 2024 | General Date |
| New Year’s Day 2024 | Monday, January 1 | January 1 |
| Martin Luther King, Jr. | Monday, January 15 | 3rd Monday in January |
| Washington’s Birthday | Monday, February 19 | 3rd Monday in February |
| Memorial Day | Monday, May 27 | Last Monday in May |
| Juneteenth | Wednesday, June 19 | June 19 |
| Independence Day | Thursday, July 4 | July 4 |
| Labor Day | Monday, September 2 | 1st Monday in September |
| Nevada Day | Monday, October 25 | Last Friday in October |
| Veterans Day | Monday, November 11 | November 11 |
| Thanksgiving Day | Thursday, November 28 | 4th Thursday of November |
| Family Day | Friday, November 29 | Day after Thanksgiving |
| Christmas Day | Wednesday, Dec. 25 | December 25 |
Valid PTO Usage
Nevada’s mandatory PTO law allows employees to use their paid time off for any reason without explaining to their employers. However, specifically, the statute, NRS 608.0197, gives following as the valid reason for PTO usage:
- Caregiving to a family member
- Receiving medical or preventive care
- Treatment for a mental or physical issue
- Addressing other personal well-being needs
This is not an exhaustive list, but some reasons PTO usage is valid. A complete list is available here.
Rate of Pay Calculation
As mentioned earlier, Nevada requires employers to pay the same hourly wages for PTO as their regular wages. However, a distinction is how regular hourly wages are calculated for salaried employees. The employer takes the hourly wage of the last 90 working days to calculate the rate of pay for PTO. For instance, if an employee in Nevada has worked 550 hours in the last 90 days and earned $25,000, their PTO rate will be $45.45 per hour.
Recording PTO
Employers must maintain detailed records of accrued and used paid leave for each employee for at least a year. This includes tracking the accrual rates, used leave, and any remaining leave balance. A bulletin informing employees of their rights under Nevada PTO law at the workplace must be displayed.
Employee Rights
When creating PTO policies in Nevada, employers should consider these employee rights:
- Employees can start using accrued PTO 90 days after starting the job.
- Employees have the right to use their paid time off for any valid reason without specifying the reason to their employers.
- Employees should receive payment for unused PTO if mentioned in their employment contract or company policy.
- Employers cannot ask employees to find a replacement if they use their paid time off.
Unused PTO Payment
No law mandating employers in Nevada to pay unused PTO on termination unless it is explicitly included in company policies. However, accrued PTO must be reinstated if an employee rejoins the company within 90 days of being terminated.
How can Truein help with paid time off management?
Truein is a cloud-based, hardware-less time and attendance management software that helps employers across industries with paid time off management. Its robust features, such as automated accrual tracking, easy leave application and approval processes, and detailed reporting, can streamline PTO management by significantly reducing administrative burdens and enhancing accuracy.
You can easily integrate Truein into your HR processes to ensure PTO management is seamlessly accurate. It offers customizable policy templates you can change per your requirements and company policies, ensuring compliance with Nevada PTO laws. It is a robust tool, making it easier for employers to adhere to legal requirements while maintaining operational efficiency.
Conclusion
Understanding and complying with Nevada Paid Time Off law is crucial for employers. By integrating these laws into your operational practices, you can ensure compliance and employee welfare. From managing mandatory paid leave for large employers to handling specific leave types like sick, maternity/paternity, and military leave, employers have much to know to maintain legal compliance.
Tools like Truein can significantly aid in this process, offering streamlined, efficient solutions for PTO management.
