Nevada Labor Commissioner Michael Tanchek has announced a change to the state overtime laws. Under the current law, lower-paid employees are entitled to overtime when they work more than 8 hours per day. An employee who worked 13 hours on one day would be entitled to 8 hours at the regular rate, plus 5 hours of overtime at 1.5 times the employee’s usual rate. This is true, even if the employee only works 13 hours in the pay period. Changes to the law on July 1, 2008 mean it will apply to more workers than ever.
The Nevada law actually requires overtime pay when an employee works more than 8 hours in any 24-hour period. For example, a hotel front desk clerk might work 3 pm to 11 pm on Tuesday and then 7 am to 3 pm on Wednesday. Under the overtime law, the desk clerk would be entitled to time-and-one-half for the entire 8 hours on Wednesday, because she has worked more than 8 hours in a 24-hour period.
The new Nevada overtime law applies to employees who earn less than $8.775 and have a qualifying health insurance plan. In addition, the new overtime rules apply to employees who earn less than $10.275 per hour if they do not have a qualifying health insurance benefit from the employer. All employees, including those who earn more than those amounts, are still entitled to overtime after 40 hours.
“What sets Nevada apart from the other states is that our daily overtime requirement is tied to the minimum wage,” Labor Commissioner Michael Tanchek said, “This is a significant enforcement issue for us because many employers
are unfamiliar with the daily overtime requirement.”
Under a law passed in 2006, Nevada’s minimum wage will be adjusted for inflation annually. The overtime rate will also be adjusted each year.
Nevada’s wage payment laws, including minimum wage and overtime requirements, are enforced by the Office of the Labor Commission, with offices in Las Vegas and Carson City. Employer groups, including the Las Vegas Chamber of Commerce, have voiced concerns about this change.
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