Nevada Wage Law Explained
Table of contents:
Minimum Wage
Nevada’s minimum wage increased of July 1, 2020 to $9.00 per hour for employers who do not offer health insurance and $8.00 for those who do. It will continue to increase each year until it reaches $12 for jobs with no health insurance and $11 for jobs with health insurance, by 2024.The 2-tier system is scheduled to be eliminated as of 7/1/24.
| Effective Date | With Health Insurance | No Health Insurance |
| 7/1/2020 | $8.00 | $9.00 |
| 7/1/2021 | $8.75 | $9.75 |
| 7/1/2022 | $9.50 | $10.50 |
| 7/1/2023 | $10.25 | $11.25 |
| 7/1/2024 | $11.00 | $12.00 |
- Casual babysitters
- Domestic service employees who reside in the household where they work
- Employees engaged in an agricultural pursuit for an employer who did not use more than 500 days of agricultural labor in any calendar quarter of the preceding calendar year
- Taxicab and limousine drivers
Overtime Pay
In Nevada, an employer that either requires or permits an employee to work overtime is generally required to pay that employee overtime for those hours. Overtime is considered any hours worked over 40 hours per workweek, or over 8 hours per workday if the employee’s regular pay rate is less than 1.5 times the Nevada minimum wage, and the pay for overtime hours is at least one-and-a-half times an employee’s regular pay rate. So, if a worker makes less than one and one half times the state minimum wage ($12.375/$10.875) per hour, they are entitled to be paid overtime for time worked over 8 hours in a 24-hour period. If an employee makes more than one and one half times minimum wage, the employee would only be entitled to overtime pay for hours worked over 40 per week. There is an exception to the daily overtime rule for employees who agree to work 4, 10 hour shifts. Even though they work more than 8 hours per day, the employer is not required to pay them time and a-half for overtime. An employer doesn’t violate overtime laws by requiring employees to work overtime, (ie “mandatory overtime”), as long as they are properly compensated at the premium rate required by law.Overtime Exceptions
While many workers in Nevada are entitled to overtime pay when they work more than 40 hours per week, there are a few exceptions. Which workers are considered exempt or non-exempt in Nevada is largely consistent with federal law. Exempt employees are those who, due to their job duties and pay, are not legally entitled to overtime and are, therefore, “exempt” from the laws regarding overtime pay. Non-exempt employees are those whose job duties do not fit within any of the exemptions provided for under the FLSA or Nevada’s labor laws and are, therefore, entitled to overtime pay.Independent Contractors
Most employers in Nevada must provide employees with insurance coverage, including worker’s compensation, unemployment, and temporary disability insurance. They also must pay a portion of the employment taxes related to workers’ wages and overtime pay for any non-exempt employee. Independent contractors, on the other hand, are only entitled to the specific compensation bargained for in a contract and are not legally required to be paid a premium for overtime hours. As a result, there is a strong economic incentive for employers to misclassify employees as independent contractors in order to save on benefits and overtime pay. Merely labeling a worker as an independent contractor, or even entering into a written agreement, is not enough to avoid the labor laws on overtime pay. There are several factors to be considered in determining if a worker in Nevada is an employee or independent contractor (a/k/a 1099 employee) Under state law, workers in Nevada are considered independent contractors, rather than employees, if:- They have applied for a federal employer tax identification number or Social Security number, or has filed a federal income tax return for a business or earnings for self-employment, in the previous year;
- They are working under a contract that requires them to hold a state or local business license and to maintain any necessary occupational license, insurance, or bonding for the term of the contract; and
- They meet at least three of the following criteria:
- The worker has control and discretion over the means and manner of performance of the work
- The worker has control over the time the work is performed, unless agreed to in the contract
- The worker is not required to work solely for one employer, unless required by law or agreed to in a written contract with a limited term
- The worker is free to hire employees to assist with the work
- The worker has invested in the worker’s own business by, for example, buying or leasing tools and equipment, obtaining necessary licenses, or leasing workspace
