Nevada Minimum Wage Increases to $6.85 in July

June 10th, 2008 Posted by Amelia

On July 1, 2008 the Nevada minimum wage will increase from $6.33 per hour to $6.85 per hour. The state minimum wage in Illinois, Michigan, West Virginia and Kentucky will increase on that same date.

Nevada’s minimum wage statute is unique in the 50 states because it allows employers who offer a qualified health benefit plan, such as group health insurance, to pay workers less. Currently, Nevada employers offering a qualified health insurance plan can pay workers $5.30 per hour. On July 1, 2008, qualified employers can pay workers $5.85 per hour.

Important changes to the Nevada overtime law were announced at the same time.

The changes were announced by Nevada Labor Commissioner Michael Tanchek. The Nevada minimum wage increase slightly precedes an increase in the federal minimum wage. Under the Fair Pay Act of 2007, the federal minimum wage will increase on July 24, 2008 from $5.85 per hour to $6.55 per hour. This means that Nevada employers who offer health insurance but conduct business across state lines will be obligated to pay workers at least $6.55 per hour, under federal law. However, Nevada employers who offer insurance and do not conduct business out of state, will be able to pay employees $5.85 per hour.

As might be expected, with all the changes, this is an excellent time for employers to update their federal and state minimum wage posters – and to check that all other posters required by state and federal law are current.

Nevada is one of 10 states – plus Puerto Rico – that do not allow employers to pay tipped workers less than the minimum wage. Along with Alaska, California and other states, Nevada requires that waiters, waitresses, cocktail servers and other tipped workers be paid the full state minimum wage.

The Nevada minimum wage law also sets limits on which health care plans qualify under this program. The cost to the employee is limited, while a certain level of benefits is required. Some health plans – especially those offered by self-insured employers – may not qualify under the Nevada statute.

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