Nevada Minimum Wage 2024: Overtime and Minimum Wage Changes

Nevada’s minimum wage requirements have changed significantly since July 1, 2024. The state’s two-tiered minimum pay structure has been replaced with a single, uniform rate of $12 per hour for all employees, regardless of whether they have qualified health benefits from their employers.

This change, approved by voters in November 2022, represents the outcome of Ballot Question 2 and is now reflected in the Nevada Constitution under Article 15 § 16.

In this article, we’ll discuss the specifics of this new legislation and how it affects Nevada employers. We’ll also share how Mosey can take your business compliance to the next level.

What Is the Effect of This Change?

This update to Nevada’s minimum wage streamlines the pay system for companies and workers, removing the previous distinction based on health benefits.

It also signals the conclusion of Nevada’s yearly minimum wage hikes, effective since 2019. Businesses should be aware of the overall effects of these developments on salary laws, overtime eligibility, and compliance rules as they adapt to new terrain.

What Are Other Changes to Nevada’s Minimum Wage?

For Nevada employers, the change to a single minimum wage of $12 per hour is dramatic. Gone is the two-tiered system that saw companies providing a minimum wage of $10.25 per hour with qualified health benefits and $11.25 per hour for workers without them.

The new law eliminates this differentiation, establishing consistent pay for every employer. This modification has many advantages. First, it streamlines Nevada payroll, eliminating companies’ need to monitor and apply various pay rates depending on employee perks. This uniformity can help lower the possibility of payroll processing mistakes and administrative loads.

Second, it ensures a greater minimum pay independent of the perks the company provides. This fosters financial stability for workers throughout the state.

The termination of automatic annual pay raises also gives companies a degree of labor cost planning consistency. Nevada’s minimum wage increased yearly between 2019 and 2024, which forced companies to make constant adjustments. Now that the pay is $12 an hour, companies can plan ahead, knowing their precise responsibilities.

How Has Daily Overtime Eligibility Been Modified?

Nevada has a different attitude toward overtime, especially daily overtime. State law entitles nonexempt hourly workers earning less than 150% of the minimum wage to overtime compensation for hours worked over eight in a single workday. Unlike the more typical weekly overtime, which covers hours over 40 in a workweek, this daily overtime need varies.

The changes to daily overtime qualifying levels align with the new minimum pay of $12 per hour. As of July 1, 2024, employees making less than $18 per hour — 1.5 times the new minimum wage — will be eligible for daily overtime.

This change ensures that workers who make near minimum wage get suitable pay for long hours worked. For employers, this includes reviewing payroll systems and making sure workers under the new overtime regulations are correctly categorized and paid for.

Ignoring this revised level might result in non-compliance and even fines. By adapting to these changes early, businesses can prevent interruptions and maintain seamless operations.

What Are Special Considerations for Tipped Workers?

Nevada’s tipped workers earn the same minimum pay as non-tipped workers. Unlike several other states, Nevada does not let businesses credit gratuities toward fulfilling the minimum wage requirement. Since July 1, 2024, employees must be paid at least $12 per hour regardless of their tip income.

This uniform pay mandate guarantees a set baseline income for tipped employees, offering improved financial stability free from reliance on tip fluctuations. Moreover, this shift demands careful attention to payroll calculations for companies. In addition to required tip pooling, employers must be open about how tips are divided among staff members.

Given tipping’s prevalence in the hospitality and service sectors, the new minimum pay rate is especially important in those industries. These companies must ensure that all employees — including those who get tips — are paid equitably while they adjust to the $12 minimum pay.

How To Comply With Meal and Rest Breaks

Nevada law lays out guidelines for food and rest periods that companies must follow. Workers who work eight straight hours are entitled to at least a 30-minute lunch break. Although it isn’t compensated, this break must be given during the working day.

Apart from lunch breaks, companies also have to offer rest breaks. These must be paid, as they are computed at 10 minutes for every four hours of continuous labor. Rest breaks should ideally be planned during the workday so staff members can rejuvenate throughout their shifts.

Although legislation mandates these breaks, there are several exceptions. Collective bargaining agreements, for example, can change these criteria, and occasionally, with the authorization of the Labor Commissioner, other plans can be developed. Employers should be aware of these exclusions and make sure any departures from the norms are legally allowed.

Businesses depend on adherence to meal and rest break rules. Penalties and legal conflicts resulting from noncompliance might be expensive and harm an employer’s reputation. Following these guidelines can help your company avoid legal problems and create a better workplace.

How To Ensure Recordkeeping and Payroll Compliance

Payroll compliance in Nevada requires accurate recordkeeping. Companies must keep records of gross pay, deductions, net pay, daily hours worked, and payment dates for each employee. Additionally, these documents must be preserved for at least two years from their creation date.

The move to a new minimum pay structure emphasizes the need for careful documentation. Employers must ensure their payroll systems are updated and that all records fairly show the new pay responsibilities as they change. Failure to maintain correct records could result in significant fines — up to $5,000.

Beyond the minimum compensation, companies must be aware of additional payroll compliance obligations, such as wage deductions, meal and rest breaks, and overtime. Maintaining thorough and accurate records helps companies show their dedication to abiding by the law while guarding themselves from possible conflicts.

Choose Mosey To Stay Compliant

For companies and workers alike, the revisions to Nevada’s minimum pay and overtime rules in 2024 represent a significant departure. Businesses must ensure their payroll systems are current and in compliance with the most recent rules given the new $12 minimum wage.

The 2024 developments might bring new challenges, but they also provide clarity and consistency. Understanding and following these new criteria will help employers avoid compliance problems and build a good rapport with their employees. As always, running a profitable company in Nevada depends on staying educated and proactive about labor laws.

Mosey’s compliance management system provides the knowledge and tools you need to stay in line. Our compliance automation takes care of the legal details so you can focus on what matters most: your business.

Don’t let compliance problems keep you from growing your business. Schedule a demo with Mosey for more support with your compliance needs.

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