Changes to Nevada Overtime Law

Labor Commissioner Michael Tanchek has announced a change to the state laws. Under the current law, lower-paid employees are entitled to 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 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 ,” 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.

 

This entry was posted in , Bookmark the permalink

16 Thoughts on “Changes to Nevada Overtime Law”

strip Darns

September 13, 2009 at 7:50 am

Can a written agreement between the employer and employee to work 3
eleven hour shifts in three day’ without overtime be legal?

Amelia

September 13, 2009 at 9:21 am

Hi strip! Yes, this arrangement is lawful in Nevada as long as the employee earns $9.83 per hour or more.
Federal law requires overtime only after 40 hours in the payroll week.
Nevada law requires overtime after an employee works 8 hours per day — but only for certain minimum wage employees. The Nevada law actually requires that an employee who works more than 8 hours per day earn at least 1.5 times the Nevada minimum wage of $6.55 per hour for the overtime. That works out to $9.825 per hour. (If the employer does not offer group health insurance, then the minimum overtime rate increases to $11.325 per hour.) If the employee’s hourly rate is higher than that, the employer is in compliance with the Nevada overtime law. HTH, and thanks for reading the blogs!~ Amelia

Johnothan

March 23, 2010 at 12:36 am

It’s now March 22 2010 and I just heard of this law for the first time today because of an announcement at my wifes job. My employers have made no such announcement and I want to know where I can find a copy of this law in writing so I can bring it to their attention properly. If you could please email me a link or something it would be greatly appreciated.

Amelia

March 23, 2010 at 8:52 pm

Hi Johnothan! For more info, see the link below. Note that this law applies only to employees whose base salary is less than 1.5 times the Nevada minimum wage. For an employee with health insurance in 2010, that is $9.825 per hour. For other employees, that is $11.325 per hour. So an employee with a base (hourly) rate higher than that is entitled to overtime only when he or she works more than 40 hours per payroll week.

Example: Tina earns $12 per hour and has no health insurance. She must be paid overtime after 40 hours, but because she is already being paid more than $11.35 per hour, she need not be paid time-and-one-half when she works more than 8 hours in a day. Amy earns $10.15 per hour with group health insurance. She is also not entitled to overtime after working 8 hours per day.

Employers are not required to inform workers of changes in employment law. They are merely required to follow the law themselves. If your hourly wage is less than $11.325 (or $9.825 with insurance) and you are not paid overtime after 8 hours, file a wage complaint with the Nevada Labor Commissioner. HTH, and thanks for reading the blogs!~ Amelia

Read more at: http://www.laborcommissioner.com/faqs.htm and http://www.laborcommissioner.com/

Erica

April 10, 2010 at 3:38 am

If I work 3pm-12am one day and it is the end of the pay period then for the next week (next day) I work 7am-4pm am I entitled to over time pay?

Danna

July 31, 2010 at 2:42 pm

Amelia,
I don’t know where you’re getting your figures. Minimum wage in 2010 is $7.25 an hour so the daily overtime requirement kicks in at $10.875 an hour, not $9.825.

Thanks,

Danna

July 31, 2010 at 2:55 pm

Never mind the last comment. Your figures are right for March 2010. They changed in July 2010.

Another question: What about hourly employees who also earn product sales commission and a service charge (percentage of weekly business revenue) on top of their hourly wage? It does not equal more than half of their compensation. It is actually a small amount, but would put our $10 per hour employees over the $10.88. Does that affect their daily overtime requirement?

Thanks! :)
Danna

Amelia

July 31, 2010 at 6:07 pm

Hi Danna! Actually, if you look at the date, the post above was written in March 2008. The minimum wage changed in 2009, but the comments above were posted before that change.

There are two overtime laws that apply to most Nevada workers. The federal FLSA requires that an employee be paid 1.5 times the employee’s average wage earned in that payroll week, including commissions and bonuses. Suppose Jack averages $12 per hour in wages and commissions for 48 hours. Jack is entitled to an additional $6 per hour for 8 hours, as an overtime premium under the federal law.

A few Nevada employers are not covered by the federal overtime law, the FLSA. However, they are covered by the Nevada overtime law. As you know, that law requires that employees who are paid less than 1.5 times the minimum wage (currently $7.25 x 1.5 = $10.875 rounded to $10.88) must be paid overtime after 8 hours per day and after 40 hours per week.

Whether or not you can count commissions in the employee’s regular rate of pay to get up to the $10.88 is a gray area. (We are assuming that every employee always earns enough commission to exceed the $10.88 rate, no exceptions.) Our recommendation is that you consult with the Nevada Labor Commission or an attorney specializing in employment law on this issue. HTH, and thanks for reading the blogs!~ Amelia

stacy

November 13, 2010 at 9:36 pm

I worked for employer started at 10.50pr/hr in july08 then went to 11.00pr/hr inmid 2009.There was and still is no health insurance program available. All this time they only paid overtime after 40hrs pr/wk. Certain days I worked 9-10.5 hrs other days only 7-8. My previous job paid o.t. after 8 and over 40.They also didnt pay o.t. on the major holidays when we worked such as thanksgiving,xmas,etc. I have since had problems with them and had asked about this and they said it was not so. My daughter also worked there part time during school year and fulltime in summer having similar long days.The parttime she worked when in school was 9.5-10 hrs every sat and sun. She didnt get overtime just straight time as her total hrs were usually 20 pr week 10 each of the 2 days.Is there any way to be able to still file and go back for these lost wages, who do i file with and how? As they do keep all time recorded on computer there is record of it. I also earned week vacation due to me in june,only took 1 day of it as was saving to use in aug for trip.I was ‘let go’ day before my vacation started do they still owe this to me?
Thank you

Amelia

November 14, 2010 at 5:31 am

Hi stacy! Under Nevada law, employees without health insurance must be paid at least $12.38 per hour when working more than 8 hours per day. Employees who have affordable health insurance available must be paid at least $10.88 per hour. (Both of these rates are 1.5 times the relevant Nevada minimum wage.) You can file a wage complaint with the Nevada Labor Commissioner at http://www.laborcommissioner.com/faqs.htm. They will investigate, and if you are owed wages will force the employer to pay. Do so soon — they can only go back a maximum of 2-3 years.

There is no Nevada law that requires overtime or a higher rate on holidays such as Thanksgiving and Christmas. Nor is there any Nevada law that requires the employer to pay for unused vacation at termination. HTH, and thanks for reading the blogs!~ Amelia

January 7, 2011 at 2:17 pm

Message
In Nevada, can ski resort only pay its employee ski instructors for actual time instructing, even though resort mandates that they stay on premises to be available to teach (but not get paid for wait time)?

Amelia

January 7, 2011 at 4:19 pm

Hi David! No, this is probably not legal. Under both the federal and Nevada minimum wage laws, an employee must be paid for all time worked. That includes time spent waiting on the employer’s premises for work. The classic example is a bike messenger who is required to wait at the dispatch office until his services are needed. Because he is not free to go to the movies, grocery shopping or leave the premises, he must be paid for all the time spent waiting, not just time he is on his bike. Your situation sounds very similar. If you are not allowed to leave the premises and go about your own pursuits, you should be paid for this time. You can file a wage complaint with the Nevada Labor Commissioner at http://www.laborcommissioner.com/. Be aware that some states exclude ski instructors from the state minimum wage. If that is the case, file a wage complaint with the U.S. Department of Labor at http://www.dol.gov. HTH, and thanks for reading the blogs!~ Amelia

Amy

March 3, 2011 at 8:35 pm

Hi Amelia…I will try to explain my situation as simply as I can. A few days ago my co-workers and I found out that our pay period was changing. Our current pay period is 7 days long, starting on wednesday, ending on tuesday. we are paid on fridays, approximately 2 days after the period ends. Our manager stated that because of the pay period was changing, our next check would be for a 5 day work week, and the following week would return to a 7 day period. The new pay period would be starting on monday and ending on sunday. Payday would still be the Friday following the last day of period. However, because of the way they are doing this we are losing the Monday and Tuesday shifts due to this 5 day pay period. Some employees are off on these 2 days so it doesn’t effect them at all. I work 12 hour shifts on both Monday and Tuesday. How is it legal for my employers to do this? From what I am hearing around work, corporations change pay periods every so often to save money. Can you explain to me how this works, and how its legal? Our pay period was changed about 8 months ago as well, how often can they do this?

Amelia

March 4, 2011 at 8:13 am

Hi Amy! It is legal for a company to change the payroll week and the payroll period. However, under federal and Nevada laws, employees must still be paid for all the time they work, and must still be paid overtime when they work more than 40 hours in the payroll week.

In this case, the employer is handling the change appropriately, although the manager could have explained it better. (And it should have been explained in writing.)

You should not lose anything by working on Monday and Tuesday when the payroll week is changed. Currently the payroll week runs from Wednesday to Tuesday. So one Friday you will receive a paycheck for the previous Wed — Tues. The next week is a transition week, and you will receive a check on Friday that covers your work for Wednesday, Thursday, Friday, Saturday and Sunday. (You are not due any payment for Monday or Tuesday on that check because you were already paid for those days the previous Friday.) The next week you will be paid on Friday for all the time worked on Monday, Tuesday, Wednesday, Thursday, Friday, Saturday and Sunday.

You have less money during the transition week, because now you are waiting 5 days after the pay period ends before you receive a check, instead of 2 days. However, in reality you are being paid for all the time you work. (And employees in many states wait 7 to 14 days after the payroll period ends for their paycheck.) The hours from Monday and Tuesday don’t evaporate — you are still being paid for them.

To be sure you are being paid for all the hours you work, sit down with a calendar and write the hours you work on each day. When you receive your paycheck, draw a red line through the dates you are paid for. Within 3 weeks, you should see that you have been paid for all the days you worked, except the current payroll period.

Having said all that, we will add that reputable companies do not use a change in payroll week or payroll period to save money or to solve cash-flow problems. In fact, there is no savings if this is done correctly. It is very, very unusual for a company to change the payroll week (or pay period) more than once every two or three years. You should strongly consider whether you want to continue to work for such a shady company. This might be a great time to start looking for a better job. HTH, and thanks for reading the blogs!~ Amelia

Johnothan

March 4, 2011 at 10:22 am

Is there any point at which double time kicks in for regular workers that aren’t in some kind of construction job? I’ve worked in food for the past 11 years and can’t even remember all the times I’ve worked multiple open to closes back to back.

Also what can I do about my company which was notified mid last year about the new ot rule by myself and still only pays it to people who bring it up? I feel I’ve given them ample time to get some kind of automated system in place. They even asked me to make sure I didn’t announce it to all the employees but I still tell my workers as it comes up that they need to fight for their correct pay. Can I make the complaint anonymously?

Amelia

March 4, 2011 at 10:35 am

Hi Johnothan! No, there is no point under Nevada law where an employee is entitled to double time. Employers in some industries may offer double-time as an incentive, or they may be required to pay it under a union contract. However, there is no Nevada or federal law that requires an employer to pay double time, ever. (In fact, federal law only requires overtime after 40 hours.) A few states such as California have laws that require double-time under some circumstances, but Nevada does not.

The employer is breaking the law by not paying overtime to employees, and they are breaking it again by asking you to lie about it to other employees. Every automated payroll system on the planet is capable of figuring overtime after 8 hours, or after 40 hours. This is not a computer problem — the employer just doesn’t want to pay employees their money. You should file a wage complaint with the Nevada Labor Commissioner at http://www.laborcommissioner.com/faqs.htm. Usually you cannot do this anonymously. However, it is illegal for the employer to take any negative action against an employee who files a complaint. Even if it turns out the employer has done nothing wrong, they still cannot retaliate against the employee. HTH, and thanks for reading the blogs!~ Amelia

Leave a reply

Your email address will not be published. Required fields are marked *