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Nevada Labor Commissioner
announces post-election
minimum wage and overtime
changes
With the
passage of the Constitutional Amendment changing Nevada’s
minimum wage law, Nevada Labor Commissioner Michael Tanchek
announced changes in requirements for minimum wage and overtime
affecting Nevada employers.
“With the new
law going into effect on November 28th, it is
essential to get information concerning the changes out to
employers as soon as possible,” Tanchek said.
The amendment
sets up a two-tiered minimum wage system for Nevada. Employer’s
who make a qualified health insurance plan available to their
employees can pay a minimum wage of $5.15 per hour. Employers
who don’t make a qualified plan available will have to pay at
least $6.15 per hour. A qualified plan has to provide coverage
for the employees and their dependents and the cost to the
employee cannot exceed 10% of the employees gross taxable
income.
The amendment
increases the number of employees who are entitled to be paid
minimum wage.
According to Tanchek, the only exemption allowed under the new
amendment is for employees who are under the age of eighteen who
are employed by nonprofit organizations for after school or
summer employment or employed as trainees for a period not
longer than 90 days. Employers
who hire employees who were previously exempt under the statutes
will need to make the necessary payroll adjustments. Domestic
service employees, outside salespersons, agricultural employees,
taxicab and limousine drivers, and casual baby sitters will no
longer be exempt from the minimum wage. In addition, the
special minimum wage for severely handicapped persons with
certificates issued by the Rehabilitation Division of the
Department of Employment, Training and Rehabilitation was not
included among the exemptions.
“While that
amendment didn’t set any minimum wage for the after school,
summer employment, or trainee exemption, the federal government
does have such a rate and employers will still need to follow
the federal guidelines for those employees,” Tanchek said.
Another
significant change resulting from the new amendment is to
increase the coverage of Nevada’s daily overtime requirement.
Employee’s who are paid less than one and a half times the
minimum wage must be paid overtime when they work more than
eight hours in a workday.
Employees who
are offered a qualifying health insurance plan will be entitled
to daily overtime if they make $7.725 or less per hour.
However, employees who are not offered a qualifying plan will
have to be paid overtime on a daily basis if their hourly rate
is less than $9.225 per hour.
“Now that the
minimum wage is set by the people under the Constitution rather
than the Labor Commissioner under the statutes, we need to
follow the Constitution,” Tanchek said.
For more information, log on to www.leg.state.nv.us/NRS/NRS-608.html.
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