Compliance Watch:

What are my rights as a salaried employee in Nevada?

According to the Fair Labor Standards Act (FLSA) and Nevada salaried employees laws, a salaried employee in the state is any employee who receives a predetermined amount at least twice a month. Therefore, employers in the state must pay their salaried employees at least two times every month. 

A salaried employee’s compensation typically includes paid benefits such as a health benefit plan and paid leave for employees in private organizations with 50 or more employees. 

In addition to paid benefits, some salaried employees in Nevada earn overtime pay when they work for more than 40 hours in one workweek. These employees fall under the category of salaried employees with non-exempt status. Comparatively, the state’s labor laws categorize salaried employers who are ineligible for overtime pay as exempt.

Common Questions About Salaried Employee Rights in Nevada

• Minimum Salary Threshold: Salaried employees in Nevada get paid a consistent amount of money at regular intervals, regardless of how many hours they work. This helps them have a steady income.
• Overtime Pay: Non-exempt salaried employees in the state are entitled to overtime pay when they work for every hour worked above 40 hours in a workweek. 
• Exempt vs. Non-Exempt Classification: It’s important to determine an employee’s exempt or non-exempt status to compute compensation accurately. Misclassification can lead to legal issues.
• Meal and Rest Breaks: Nevada law requires employers to provide meal and rest breaks to employees based on the number of hours worked. 
• Paid Sick Leave: Nevada law requires employers to provide paid sick leave to employees based on length of employment. Further, an employee can use their sick leave to take care of an ailing member of their immediate family.
• Equal Pay: Salaried employees in Nevada are protected by laws that prohibit employers from basing salaries on gender. Employees with the same level of responsibility who perform substantially similar work that requires equal skill and effort should receive equal pay.
• Whistleblower Protection: The state’s employment laws protect salaried public or private sector employees who report illegal or unethical activities in the workplace from retaliation. Employers cannot take adverse actions against employees for reporting wrongdoing.
• Family and Medical Leave: Eligible employees have the right to take unpaid leave for family and medical reasons under the federal Family and Medical Leave Act (FMLA). In addition to the types of unpaid leave stipulated by the FMLA, Nevada’s state-specific regulations guarantee leave for victims of domestic violence. Employers must comply with these laws and provide job protection during leave.
• Workers’ Compensation: Salaried employees who suffer an injury in the workplace have the right to file a workers’ compensation claim, which can provide medical benefits and wage replacement.
• Right to Organize: Salaried employees have the right to join labor unions and collectively bargain for better wages, working conditions, and benefits.
• Payroll Records: Employers are required to keep accurate records of hours worked and wages. Additionally, employers must provide regular paychecks at least twice a month. Deductions from paychecks must comply with state and federal laws. 

It’s important to stay informed about these rights as employment laws can change over time.

Yes. While some salaried employees are not eligible for overtime, earning a predetermined salary does not automatically exempt an employee from overtime pay. 

As of July 2023, all employees in the state who earn less than $15.375 per hour and receive healthcare benefits or earn less than $16.875 without healthcare benefits are eligible for overtime. The two categories of employees accrue overtime for working more than eight hours in 24 hours or more than 40 hours in one work week. However, Nevada overtime laws outline some exceptions as follows:

• Exempt Salaried Employees: Employees who meet the criteria for one of the FLSA’s white-collar exemptions (executive, administrative, or professional) and receive a salary above a certain threshold are not entitled to overtime.
• Agricultural Workers: Some agricultural employees are exempt from overtime requirements.
• Certain Salespeople: Salespeople engaged in the sale of automobiles, trucks, or farm equipment are not eligible for overtime in Nevada.
• Certain Transportation Workers: Certain transportation workers such as the drivers of limousines and cabs, motor carrier drivers, their helpers, mechanics, and loaders are exempt from overtime.
• Live-In Domestic Employees: Domestic service workers who live in their employer’s residence are not eligible for overtime.
• Railroad Employees: The employees of a railroad are exempt from overtime laws.
• Collective Bargaining Agreements: Salaried employees who are bound by CBAs that require employers to compensate for overtime in other ways are not entitled to overtime pay. 

Please note that these exemptions are subject to change, and specific circumstances may vary. It’s crucial to stay informed about the latest federal and state labor laws by consulting legal experts or the office of the Nevada Labor Commissioner to determine an individual employee’s eligibility for overtime accurately.

Under the Nevada Administrative Code (NAC) 608.160, an employer may not withhold or deduct an employee’s wages for any reason except under the following circumstances:

1. Court-Ordered Deductions: A court of competent jurisdiction may issue orders requiring employers to deduct child support, alimony, or other court awards from an employee’s salary. 
2. Voluntary Wage Deductions: Employees can authorize employers in writing to make certain deductions. These deductions include health insurance premiums and contributions to pension plans. While an employee can authorize any legal deductions, these deductions must not reduce the employee’s wages below the minimum wage.
   Further, an employee cannot provide blanket authorization. Rather, an agreement to make deductions from an employee’s salary must specify the purpose of the deduction and the pay periods in which the deduction is authorized.
3. State and Federal Deductions: Employers are allowed to deduct taxes and any other amounts required by state and federal laws. 

In addition to highlighting instances in which an employee can deduct wages from salaried employees, Nevada’s employment laws outline specific circumstances in which an employer is prohibited from deducting an employee’s wages. These include:

• Rebates and Refunds: An employer cannot recoup previous overpayments or any other funds owed to them by an employee from their wages without explicit authorization from the employee.
• Salary Reductions: An employer cannot pay an employee an amount lower than the previously agreed-upon salary without advance notice. 
• Uniforms and Tools: An employer cannot deduct the cost of uniforms and any other tools needed for work from an employee’s salary.

It’s important to emphasize that Nevada, like many states, has specific requirements and limitations on wage deductions in addition to the provisions of the FLSA. The state’s laws state that any deductions that are not authorized by the employee or the law can only be made for the benefit of the employee.

Primarily, Nevada defers to the Fair Labor Standards Act (FLSA) on the matter of breaks for exempt salaried employees. As such, exempt employees are not eligible for paid breaks as per NAC 608.145. However, state laws mandate breaks for non-exempt salaried employees as follows:

• An employee who works for 3 1/2 or more continuous hours is eligible for a 10-minute rest period if they work for less than 7 continuous hours. If the employee works for more than 7 but less than 11 continuous hours, they should get two 10-minute breaks. An employee who works for more than 11 and less than 15 continuous hours should take three 10-minute breaks. An employee who works for more than 15 but less than 19 continuous hours should take four 10-minute breaks.
• Second, all salaried employees are eligible for unpaid lunch breaks in addition to their 10-minute breaks. While employees are eligible for unpaid breaks, they can forgo their lunch breaks as well as their 10-minute breaks but the employer must prove that such an agreement was made voluntarily. 
• Finally, the NRS has a special provision for mothers with children under the age of 1. The employees are allowed reasonable breaks to express breastmilk. These breaks are separate from rest periods and meal breaks. They can be paid or unpaid. In addition to the break, employers must designate a clean, pollution-free, and enclosed space for the employees to express breastmilk. 

On top of their breaks, Nevada leave laws provide the following paid and unpaid leaves for salaried employees in the state:

• Paid leave for general purposes: Employees in the state earn paid leave based on hours worked. Every salaried employee is entitled to 0.01923 hours of paid leave for each hour worked. Employers can estimate and offer the total hours of leave due to employees at the beginning of the benefit year or require employees to accrue them over the year.

• Paid sick leave: Employees can take accrued sick leave for themselves or use the time to take care of their immediate family. The state prohibits employers from denying or retaliating against employees who use their paid sick leave to take care of ailing family members or retaliating against. It is important to note that the paid leave mandated by the state of Nevada is not included in the 12 weeks of unpaid sick leave provided for all salaried employees under the FMLA.
•  Paid or unpaid leave related to domestic violence: Victims of domestic violence in the state can take up to 160 hours of leave. However, an employee can only take this type of leave within one year of experiencing domestic violence. Further, an employee must have worked for their employer for at least 90 days before the incident to qualify for the leave. 

A common flexible work schedule in Nevada is the compressed four-day workweek under which employees work 10 hours for four days a week and enjoy a three-day weekend. The state’s laws recognize the compressed work schedule in their overtime provisions for non-exempt salaried employees.

In addition to the 4-day week, Nevada recognizes and encourages other compressed work schedules, also referred to as innovative or non-standard workweeks in the Nevada Statutes and Regulations.

Exempt status in Nevada refers to ineligibility for both overtime and minimum wage requirements. The primary qualification for exempt exempt status is a minimum salary of $684 per week ($35,568 annually).

Therefore, a salaried employee in the state is considered exempt if they earn more than $684 per week, do not qualify for overtime, and are not guaranteed the state’s minimum wage of $10.25 if the employer offers health benefits and $11.25 if the employer does not offer a health benefits plan. However, effective 1st July 2024, the state minimum wage will be $12, irrespective of health benefits offered to the employee.  

According to NRS 608.018(3)(d), exempt status generally applies to bona fide executive, professional, and administrative employees. However, some professionals can qualify for exempt status without meeting the salary threshold. The section outlines specific professionals who fall under this category, including architects, interior and residential designers, accountants and financial planners, dentists, physicians, doctors of oriental medicine, and psychologists. Here is the State of Nevada Office of the Labor Commissioner’s comprehensive list of professionals who can be exempt without meeting the salary threshold in Nevada.

In Nevada, determining whether an employee is exempt or non-exempt from federal and state wage and hour laws is crucial for purposes of minimum wage, overtime pay, and accurate employee classification. The Fair Labor Standards Act (FLSA) is the primary federal law governing these classifications, and Nevada state law may also provide additional protections. To determine exempt or non-exempt status in Nevada, you should consider the following tests and criteria:

• Compensation Basis Test: Exempt employees in Nevada receive a predetermined salary at least twice a month. The salary is not subject to reduction based on the quantity or quality of work performed. Non-exempt employees are typically paid on an hourly basis.
• Salary Level Test: Exempt employees in Nevada must meet a salary threshold of $684 per week ($35,568 annually).
• Duties Test: To qualify for exempt status, employees must also perform specific job duties that fall within one of the exempt categories. In Nevada and under federal law, there are several exempt categories, including:
• Executive Exemption: Employees must have management as their primary duty, regularly supervise at least two or more employees, and have the authority to hire or fire employees.
• Administrative Exemption: Employees must perform primarily office or non-manual work related to management or general business operations and exercise discretion and independent judgment on significant matters.
• Professional Exemption: Employees must perform work that requires advanced knowledge in a field of science or learning, customarily acquired through a prolonged course of specialized intellectual instruction.
• Outside Sales Exemption: Employees must be primarily engaged in making sales or obtaining orders outside of the employer’s place of business.
• Computer Employee Exemption: Employees must be employed as computer systems analysts, computer programmers, software engineers, or other similar positions and meet specific salary and duties requirements.
• Overtime Eligibility: Non-exempt employees are generally entitled to receive overtime pay for any hours worked beyond 40 hours in a workweek. Exempt employees, on the other hand, are not eligible for overtime pay, regardless of the number of hours worked.

Keep in mind that employment laws can change, so it’s crucial to regularly review federal and Nevada state regulations and consult with legal professionals or your HR department to ensure compliance with the most current laws regarding exempt and non-exempt classifications.

Nevada’s minimum wage has increased gradually over the years. In July 2023, it rose to a minimum of $10.25 per hour for employees with health benefits and $11.25 per hour for employees without health benefits.

In July 2024, salaried employees in Nevada will have the right to a minimum wage of $12.00, regardless of health benefits offered by the employer. However, this rate only applies to non-exempt salaried employees. Exempt salaried employees are not protected by federal or state wage and hour laws and are, therefore, not subject to the state’s minimum wage and overtime laws.

Non-exempt salaried employees who work regular 8-hour days in Nevada qualify for overtime for all time worked above 8 hours a day or 40 hours a week. Overtime is compensated at 1.5 times the employee’s regular rate. 

However, the state recognizes a compressed workweek with four 10-hour workdays and three-day weekends. Employees who work these compressed workweeks are not eligible for overtime for working more than 8 hours a day but any time worked above 40 hours a week is considered overtime and compensated at a rate of 1.5 times the regular hourly rate.

Nevada laws prohibit employers from making any other deductions from their employees’ salaries except:

• Law-mandated Deductions: Any amounts authorized by law, which include wage garnishments due to child support, alimony, or other legal obligations.
• Employee Welfare Deductions: Contributions to an employee benefits program, include retirement contributions and health insurance premiums. 
• Federal and State Deductions: This includes federal income tax and social security. Please note that state employees in Nevada are not required to contribute to social security and all employees in the state are not required to pay individual income taxes. 
• Union Dues: If an employee is a member of a labor union, union dues may be deducted from their salary as part of their membership obligations. Membership to unions and deductions for union dues must be voluntary. 
• Voluntary Deductions: Employees may choose to have other deductions, such as charitable contributions, additional retirement contributions, or certain insurance premiums, deducted from their paychecks. However, the employer can only make these deductions with written and explicit authorization from the employees.

Salaried employees in Nevada have the right to the following benefits and protections under Nevada law:

• Minimum Wage: Nevada law establishes a minimum wage rate that employers must adhere to. The minimum wage rate will be uniform for all employees from 1st July 2024.
• Overtime Pay: Non-exempt salaried employees in Nevada are entitled to receive overtime pay when they work more than 40 hours in a workweek. Overtime pay is calculated as 1.5 times the regular hourly wage.
• Paid Sick Leave: Nevada law requires employers to provide paid sick leave to eligible employees. The amount of paid sick leave may vary based on the size of the employer. Salaried employees can take a few hours off work for medical purposes without reporting the time off as sick leave. 
• Family and Medical Leave: As per the federal Family and Medical Leave Act (FMLA), all salaried employees in Nevada have the right to take unpaid leave for certain family and medical reasons, without losing their jobs. 
• Workers’ Compensation: Employers in Nevada are generally required to provide workers’ compensation insurance, which covers medical expenses and wage replacement for employees who are injured on the job.
• Health Insurance Continuation (COBRA): Federal law, known as COBRA, allows employees to continue their health insurance coverage for up to 18 months after leaving their job.
• Discrimination and Harassment Protections: Employees are protected against workplace discrimination and harassment based on characteristics such as gender.
• Pregnancy and Breastfeeding Accommodations: Employers are required to provide reasonable accommodations to pregnant employees to ensure they can continue working safely and to breastfeeding employees to ensure that they have the time to express milk and safe, clean, and enclosed spaces to do so. 
• Domestic Violence Leave: Nevada law may provide employees with the right to take unpaid leave to address issues related to domestic violence, including seeking medical attention or legal assistance.

If your employer is in violation of federal and state labor and employment laws and you wish to take action, you can report the violations as follows:

Contact the Office of the Labor Commissioner’s Office

For general complaints or to report wage and hour violations, such as unpaid wages or overtime issues, you can file the claim with the Office of the Labor Commissioner by filling out the appropriate form. 

Contact the State of Nevada Department of Business & Industry Division of Industrial Relations

If you witness workplace safety violations or have concerns over your safety in the workplace, you can contact the State of Nevada Department of Business & Industry Division of Industrial Relations (DIR) and fill out the OSHA complaint form. 

Contact the Nevada Equal Rights Commission

If you believe you’ve experienced workplace discrimination or harassment, you can file a complaint with the Nevada Equal Rights Commission (NERC), which enforces anti-discrimination laws in the state.