Nevada overtime laws 2023

In Nevada, nonexempt employees are entitled to overtime pay, regardless of their occupation or industry. All states, including Nevada, follow the labor laws defined by the U.S. Department of Labor. This includes overtime provisions that are outlined in the Fair Labor Standards Act, or FLSA. However, Nevada has its own state laws regarding overtime policies that you should also be aware of.

Keep reading if you’re new to Nevada overtime laws or need a quick refresher. You can also use the jump links below to navigate the post.

• What is overtime in Nevada?
• Updates to Nevada overtime rules in 2021
• Who is exempt from overtime pay in Nevada?
• Independent contractors in Nevada
• Common Nevada overtime mistakes
• Why are Nevada overtime laws important?
• Simplify your overtime process

What is overtime in Nevada?

Nevada overtime law requires employers to pay nonexempt employees overtime at time and a half their regular rate of pay if their workweek exceeds 40 hours. Per the Department of Labor, a workweek is a “fixed and regularly recurring period of 168 hours—seven consecutive 24-hour periods.” Moreover, a workweek can fall on any day or hour. So, if the minimum wage in Nevada is $9.75 per hour, the overtime rate would be $14.63 for every additional hour worked.

Employers in Nevada are also obligated to pay employees overtime if they exceed an eight-hour workday. This daily overtime only applies to workers that earn less than $12.38 per hour, or $10.89 if they have health benefits. That said, nonexempt workers that earn less than $684 a week or $35,568 annually are eligible for overtime compensation. Numerous employees also automatically meet the overtime requirements if they engage in manual labor or blue-collar work. This includes:

• Cashiers
• Construction workers
• Electricians
• First responders
• Park rangers
• Parole or probation officers

Is mandatory overtime legal in Nevada?

Yes, employers in Nevada can legally require employees to work overtime. The only condition for employers is that they have to provide their workers with an overtime compensation rate of one and one-half times their regular pay.

Updates to Nevada overtime rules in 2021

Earlier this year, the Office of the Labor Commissioner announced that the minimum wage rate would steadily increase. Beginning July 1, 2021, the minimum wage in Nevada will be $8.75 per hour if the employer offers a qualified health benefit plan. If health benefits aren’t provided, the minimum wage is $9.75. So, overtime rates for minimum wage workers will be $13.13 and $14.63, respectively. This change will be in effect until June 30, 2022.

Nevada has a unique minimum wage system with two tiers for hourly wages: health insurance and no health insurance. When an employer doesn’t offer health insurance, they’ll have to pay their employees a higher pay rate. On the other hand, employers that provide health insurance can pay employees a lower hourly rate. If an employee works at an establishment that offers health insurance and they deny coverage, they’re still going to get paid the lower wage.

The state’s labor commission also declared that Nevada’s minimum wage would continue to increase 75 cents annually until 2024. Ensure that your paycheck calculator can efficiently manage the overtime changes to come. Here’s what the overtime rates for minimum wage workers will look like in the upcoming years:

Who is exempt from overtime pay in Nevada?

In Nevada, employees earning a salary of $684 per week or $35,568 annually, or more, and who are in an exempt role don’t qualify for overtime pay. Workers that have overtime exemptions include some:

• Farm and agricultural employees
• Car salespeople and mechanics
• Transportation employees

To determine if an employee is exempt, you can head over to our exempt vs. nonexempt guide.

Independent contractors in Nevada

Independent contractors that are not legally your employees are also exempt from overtime pay. If you’re considering hiring independent contractors to avoid overtime pay, there are a few Nevada employment laws that you have to follow:

• Independent contractors must have an employer identification number (EIN) or Social Security number. Or, they must have filed a federal tax return for a business or as self-employed within the last year.
• Their current work requires them to have a valid business license in the state and proper documentation, such as an occupational license or insurance.

In addition to the requirements above, they must also meet three or more of the following criteria:

• The independent contractor dictates how the work is completed.
• They have control over their work schedule.
• They can work for more than one employer.
• They can hire employees to assist with the completion of the project.
• They’ve invested their own time and money to help their business flourish.

While labeling an employee as an independent contractor seems like an easy way out of paying overtime compensation, you should ensure it’s lawful. Miscategorizing employees is one way to commit an overtime violation in the state of Nevada. We’ll take a look at more common overtime offenses below to help you avoid issues with the law.

Common Nevada overtime mistakes

Overtime is complicated, and one wrong move can leave employees without overtime pay. That said, we’ve listed a few overtime mistakes you should have on your radar.

Misclassifying employees

Misclassifying employees means incorrectly labeling workers as exempt when they’re actually nonexempt. It could also mean employees are being wrongly classified as independent contractors.

Not paying unauthorized overtime

Some employers don’t like making their employees work overtime because it costs their business money. However, employees may think they’re doing their boss a favor by burning the midnight oil. Whatever the case, any additional time beyond an eight-hour shift or 40-hour workweek counts as overtime and must be paid.

By using a time tracking system, you can easily track, manage, and report time all in one place. Whether employees are just clocking in or heading out for the day, nothing will be left to chance. You can set up alerts and approvals for yourself or managers to prevent unauthorized overtime, saving you from potential headaches and money problems.

Underreporting hours

Under federal law, all overtime hours worked by employees must be accounted for. This includes productive and nonproductive work. Productive time is time spent actively working to complete a project or task. In contrast, nonproductive time can be for travel and training, as well as time spent putting on safety equipment.

The mistakes above often occur accidentally, but there are business owners that cut corners—sometimes illegally—to save themselves a few bucks. While it’s important to save money when running a business, it’s not worth committing overtime violations that can cost you more than you “saved.”

Why are Nevada’s overtime laws important?

Overtime policies, and any labor laws for that matter, are there to prevent employers from taking advantage of their employees. There are numerous blue-collar jobs in Nevada that are labor-intensive and physically demanding, so Department of Labor policies should be taken seriously. Not only will these rules protect your employees, they’ll also keep them happy at your business. Plus, not following compliance requirements can result in fines, lawsuits against you, and even jail time.

Simplify your overtime process

Whether your business is in Las Vegas or Carson City, ensuring employees receive the overtime wages that they’re entitled to is a significant responsibility. There’s no denying the complexities involved with calculating overtime pay. Make the matter a bit simpler with QuickBooks Time, an intelligent time tracking software. This way, you can keep a record of your employees’ time and provide accurate pay stubs, down to the last second and dollar.

If you need help with advanced overtime calculations, don’t worry. The QuickBooks Time Pay Rate Engine can make handling overtime a more streamlined process by automatically calculating complex overtime. With the Pay Rate Engine, you can also create custom presets for multiple pay, holiday, and overtime rates. Plus, it seamlessly integrates with your preferred payroll solution to reduce expensive payroll errors.

Get started with QuickBooks Time today and see the difference it can make in your business.

Is your business located in a state besides Nevada? Take a look at our state-by-state overtime pay law guide.