Salaried employees form a specific category within the workforce, being those who receive a predetermined fixed pay on a regular schedule, often weekly or less frequently.
This article explores the legal framework in Nevada that establishes the parameters for salaried employees and their employers. It spans topics like payment, rest and break regulations, and the classification of employees as exempt or non-exempt.
This article covers:
- Payment of Wages for Salaried Employees in Nevada
- Salaried Employees Eligibility for Overtime for Nevada
- Pay for Working Overtime for Nevada Salaried Employees
- Exceptions to Overtime Exemptions for Nevada Salaried Employees
- Violation of Salaried Employees Wages Payment in Nevada
- Male and Female Salaried Employees in Nevada
- Leave Entitlements for Salaried Employees in Nevada
- Break Entitlements for Salaried Employees in Nevada
- Deductions from Exempt Employees’ Salary in Nevada
- Termination of Employment for Salaried Employees in Nevada
In Nevada, employers have a legal obligation to provide compensation to their employees bi-monthly, commonly every two weeks.
Nevertheless, specific categories of employees, including executives, administrators, and professionals, have the option for monthly paydays according to the law.
If mutually agreed upon and documented in writing, both employers and employees can establish alternative payroll periods that adhere to legal regulations.
To ensure precise and consistent payments are made on time, employers frequently turn to the practice of monitoring payroll hours and establishing systems for managing payment schedules and approvals.
Despite salaried employees being employees who receive a fixed salary, regardless of their actual hours worked, some categories who are not considered exempt from overtime, still have the right to additional compensation in Nevada if their work hours surpass the hours their salary accounts for.
This entitles them to receive overtime compensation of 1.5 times their standard pay rate for any additional hours worked beyond their regular work hours. The specifics of the overtime rate differ based on an employee’s wage level.
To calculate the overtime rate for salaried employees, an employer must initially ascertain the employee’s hourly rate by dividing the salary by the hours the salary is intended to cover.
Next, the hourly pay rate would be used to compute the overtime rate for salaried employees through the following formula:
Hourly pay rate x Overtime Hours x Overtime Rate (1.5)
It’s crucial to understand that if an employee’s salary encompasses fewer than 40 hours in a workweek, their regular rate will be added for each additional hour worked up to 40 hours. Overtime at a rate of one-and-a-half times will be applicable only after exceeding 40 hours.
For employees whose salary accounts for 40 hours in a workweek, overtime at a rate of one-and-a-half times will be paid for any hours exceeding 40.
It’s important to mention that while salaried employees typically don’t need to monitor their work hours, there are situations, like calculating overtime, where tracking overtime hours can be beneficial. Timesheet templates can also be used to guarantee accurate recording of overtime hours, and there are specialized overtime compliance software options to ensure adherence to labor laws.
In adherence to federal overtime regulations, which Nevada also follows, employees in white-collar roles are exempt from receiving additional compensation for working overtime, as long as their weekly earnings meet the minimum threshold of $684. This exemption is applicable to professionals in four distinct white-collar categories: outside sales, administrative, executive, and professional positions.
In addition to these four categories, Nevada outlines various other professions that are exempt from minimum wage requirements. These include:
- Outside buyers
- Independent contractors
- Employees covered by a collective bargaining agreement that specifies different overtime regulations
- Retail or service industry employees, provided they earn at least 1.5 times the standard minimum wage and a significant portion of their compensation comes from commissions
- Drivers, driver’s helpers, loaders, and mechanics working for motor companies under the federal Motor Carrier Act
- Railroad employees
- Air carriers’ employees
- Local delivery drivers and drivers’ helpers, paid on a trip basis or another regulated delivery plan
- Taxicab and limousine drivers
- Agricultural workers
- Mechanics and salespeople mainly engaged in selling or servicing vehicles, trucks, and farm equipment
- Employees of businesses with annual sales under $250,000
- Domestic workers living in the household where they work, with both parties agreeing in writing to the overtime exemption
For more detailed information, refer to Nevada Overtime Laws.
In Nevada, when an employer fails to provide timely payment to an employee, the employee has the right to receive a penalty equivalent to one day’s wages for each day the payment is overdue, up to a maximum of 30 days. This penalty comes into effect from the day the paycheck was originally scheduled to be issued. However, if the employee decides to leave the job voluntarily, the penalty starts from the original due date of the paycheck. In cases of termination or layoff by the employer, the penalty commences three days after the paycheck was supposed to be received. Delays in receiving paychecks often lead to conflicts between employees and employers.
When it comes to unlawful withholding of wages, a complaint can be submitted to a government agency to instigate an investigation to assess the validity of the claim. If the investigation uncovers violations, the affected employee could be entitled to reclaim owed wages and seek damages. The agency might also engage in negotiations with the employer to reach a settlement on the employee’s behalf, or it might initiate legal action against the employer for widespread wage withholding practices.
In cases where intentional wage withholding is proven, the government has the option to press criminal charges. If the employer is found guilty, potential consequences include imprisonment and financial penalties.
In civil litigation scenarios, the recovery of unpaid wages and liquidated damages is possible. Additionally, the employer responsible for the misconduct may be required to cover the employee’s legal fees and related expenses.
Both the federal Equal Pay Act (EPA) and its corresponding Nevada statute, NRS 608.017 mandate that employers must provide equal compensation to male and female employees when performing the same job within the same establishment. While the roles don’t necessarily have to be identical, they must be significantly comparable. The basis for determining this equality lies in the nature of the work, not the job titles. The authority to enforce the EPA rests exclusively with the federal Equal Employment Opportunity Commission (EEOC).
The concept of “substantially equal” work entails tasks that demand comparable levels of skill, effort, and responsibility and are carried out under comparable working conditions.
Nevertheless, both federal and state regulations permit a wage disparity if it is founded on factors such as seniority, merit, a system linking compensation to production quality or quantity, or a wage discrepancy arising from factors beyond gender.
Nevada’s leave policies encompass various scenarios. Mandatory Paid Leave requires private sector employers with over 50 employees to offer paid sick leave: full-time staff get 40 hours, and part-timers receive 0.01923 hours per hour worked. The Family and Medical Leave Act (FMLA) mandates up to 12 weeks of unpaid leave for eligible employees, covering self or family health issues, childbirth, or adoption. Employers with over 50 employees must comply. FMLA also provides 26 weeks for Armed Forces member support. For vacation, eligible employees at companies with at least 50 employees can accrue paid leave, starting after 90 days and up to 40 hours per year.
Jury duty entitles employees to leave without using other leave types, and 4 hours’ service prevents scheduling from 5 p.m. to 3 a.m. Voting time off is provided based on the distance to the voting location. Over 50-employee businesses offer parental leave for school-related activities. Military leave under the Uniformed Services Employment and Reemployment Rights Act (USERRA) applies to the Armed Forces, National Guard, and state militia members. Court-summoned witnesses can opt for paid/unpaid leave. Victims of domestic or sexual violence can take up to 160 hours annually for medical, legal, or safety-related needs.
Nevada mandates that businesses provide employees with two distinct break categories: meal breaks and rest breaks. Within an 8-hour shift, employees are entitled to a 30-minute meal break, although the decision to offer compensation for it rests with the employer.
In contrast, paid rest breaks, lasting 10 minutes, are obligatory. These rest breaks can be taken every 4 hours, aiming to sustain employee productivity. Furthermore, an extra break category, referred to as a lactating break, is available for breastfeeding mothers.
According to the Nevada Administrative Code (608.160) and the Nevada Wage And Hour Laws (NRS 608), an employer is prohibited from demanding an employee to give back any portion of their wage, salary, or earnings.
Except for mandatory legal deductions and contributions to benefit programs, deductions from an employee’s paycheck can only occur if there is prior explicit signed consent from the employee. This written consent must outline the exact deduction amount, its purpose, and the date or pay period when the deduction will be processed.
Reduction of an employee’s wage, salary, or compensation is also against the law for an employer unless specific conditions are met:
- Providing the employee with written notice of the decrease at least 7 days before they work at the reduced rate.
- Adhering to conditions set in a collective bargaining agreement or a contract between the employer and the employee.
Nevada adheres to the “employment-at-will” doctrine. This signifies that employers hold the right to terminate employees’ contracts at their discretion, without the obligation to provide reasons. Conversely, employees possess the freedom to leave their positions for any reason or without any reason, without facing legal repercussions.
Yet, Nevada introduces a distinct statute that furnishes supplementary safeguards for employees. Specifically, employers are prohibited from firing an employee based on the reports of a detective or special agent without first notifying the accused employee and conducting a just hearing.
Moreover, Nevada’s regulations stipulate that employers are obliged to furnish a final paycheck to employees who are dismissed, whether due to layoffs or terminations. This paycheck is required to encompass all outstanding wages and accrued benefits. The timing of this final payment is contingent upon whether the employee voluntarily resigned or was terminated, but it must be issued within 7 days or by the upcoming payday, whichever occurs earlier.
Learn more about Nevada Labor Laws through our detailed guide.
Important Cautionary Note
When making this guide we have tried to make it accurate but we do not give any guarantee that the information provided is correct or up-to-date. We therefore strongly advise you seek advice from qualified professionals before acting on any information provided in this guide. We do not accept any liability for any damages or risks incurred for use of this guide.