The Nevada Overtime Law has an impact on overtime pay calculations, so take the time to verify that your business is compliant.
Overtime pay in Nevada is covered by the Federal laws that are set out in the Fair Labor Standards Act. However, this state also has its own specific overtime laws that override the federal laws.
It is the responsibility of all employers in Nevada to understand these laws, so that they can make sure they are paying their employees correctly.
Overtime Pay in Nevada
The Fair Labor Standards Act states that most employees who are paid by the hour in Nevada are entitled to overtime pay for any hours worked over a total of 40 hours in one single work week. A single workweek is defined as any seven consecutive days.
Also, when an employee in Nevada earns less than 1.5 times the official minimum wage, they must receive 1.5 times their wage whenever they work more than 40 hours in a scheduled week or more than 8 hours in a 24 hour workday.
Typically, any hourly employee who earns less than $455 per week and works in a non-exempt industry is entitled to receive overtime pay. This applies to most employees who work in manual labor jobs, such as factory attendants, construction workers, cashiers, etc.
The minimum wage in Nevada is $7.25 for employers who provide their employees with health benefits, or $8.25 for those who do not provide a health benefit. This is one of the things that sets Nevada apart from other states – the overtime rules are tied to the minimum wage.
Can Nevada Employers Require Employees to Work Overtime?
In the state of Nevada, employers can legally require employees to work overtime. An employee who refuses to work overtime when asked could legally be fired.
In addition to this, there is no limit to the number of hours an employee may require, as long as they are paying overtime for those hours in accordance to Nevada overtime law.
A Little-Known Law
Many employees and employers in Nevada are unaware of a certain law regarding overtime. In Nevada, employers are required to pay daily overtime when the following conditions apply:
- The employee makes at least $10.88 per hour, works over eight hours in a 24 hour period and receives health benefits.
- Or, when the employee works over eight hours in a 24 hour period, doesn’t receive benefits but has time-and-a-half wages that are less than $12.38. (Nevada’s minimum wage is $8.25 per hour, so that is one and a half times the regular minimum wage.)
This is a state law, rather than a federal law. In Nevada, it overrides the federal overtime laws. It was set in place by the Office of the Labor Commission, which has offices in Carson City and Las Vegas.
So, it’s the 24 hour period that counts for the purpose of these calculations? That is correct and the period begins when the employee first clocks in for their shift. For example, if their shift starts at 8am on a Monday and they work for more than 8 hours before 8am on a Tuesday, those extra hours must be paid as overtime.
This often applies to shift workers such as restaurant and hotel staff who work during different times of the day. For example, if a hotel receptionist works the late shift from 4pm to midnight one evening, then works the daytime shift the next day from 8am until 4pm, they would be entitled to overtime pay for the entire 8 hours of the second shift.
This applies even if the employee only works one day per week. If the employee is scheduled to work on a Saturday, but their shift is 13 hours long, they are entitled to overtime even if they don’t work on any other days that week. They would be paid for 8 hours at the regular rate, plus 5 hours of overtime at 1.5 times their regular rate.
This law has been in practice since July of 2015, but many workers and employers in Nevada do not know about it. Many cases exist where employees learn about the rule and realize that they are owed a substantial amount of overtime back pay, and in turn file a lawsuit with their employer. The employer then must go through the time, effort and expense of auditing the hours of the employee and calculating back pay – which can be quite a significant undertaking.
If you are an employer who is unaware of the law and do not follow it correctly, you could be making a very expensive mistake.
This Doesn’t Apply to Everyone
There are some types of employees to whom Nevada’s overtime laws do not apply. In order to figure out whether or not a certain job is exempt from overtime, the Fair Labor Standards Act has a checklist based on many factors, including pay rate, skill level, working conditions, whether the employee can set their own hours and various other considerations.
For example, these laws don’t apply to sales people who receive commission and are earning over 1.5 times the minimum wage – as long as they receive at least 50% of their pay from their commissions.
It also doesn’t apply to other types of workers, including air carrier employees, railroad workers, drivers, mechanics, agricultural and farm laborers, taxi or limo drivers, automobile salespeople and others. Administrators and professionals earning more than $455 also do not have to be paid overtime.
Also, it may be the case that the particular employees has arranged for an alternative overtime agreement through collective bargaining. There are also some cases where the company and the employee have agreed on an alternative flextime schedule. For example, they have agreed to four 10-hour days per week, then three days off. However, this must be agreed upon on a case by case basis and should be reviewed by a legal expert.
In the case of paralegals and practical nurses, they would otherwise fall under the category of being exempt from overtime. However, they are specifically protected under Nevada overtime law as these professions are often at risk of being overworked by their employers due to the nature of the job and the long hours of work involved.
Ensuring Your Compliance
This tricky 24 hour rule means that it is especially important for employers in Nevada to be aware of the overtime hours their employees are working. So, how can you make sure that you are compliant with Nevada overtime law?
- Remember that the 24 hour period starts when the employee punches the clock to start their shift and any work over eight hours within the following 24 hours counts as overtime.
- So, when scheduling employees for the week make sure that you pay attention to the start times, the duration of the shift and the time that they are scheduled to work the following day.
- Using employee time tracking software can make this much easier to keep track of. You’ll be able to see all employee shifts at a glance, so that you can immediately be aware if an employee is accruing overtime under this Nevada law.
- If you are not sure whether or not your employees are exempt from overtime, you can use this FLSA checklist to find out.
- If you are agreeing to an alternate arrangement (such as a flextime schedule) with your employee, make sure that you seek legal counsel to check that the arrangement is in compliance with the law.
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