In Nevada, federal and state termination laws govern the conditions under which an employee may be dismissed, ensuring the firing process is conducted fairly and legally. Employers and employees must understand these regulations to manage terminations properly and reduce the risk of disputes.
This article explores the key aspects of Nevada termination laws, offering a comprehensive overview of employer and employee rights and responsibilities.
This Guide Covers
Legal Considerations for Termination in Nevada
At-Will Employment in Nevada
- What is At-Will Employment?
- What are the Exceptions to At-Will Employment in Nevada?
- Employment Under Contract in Nevada
Lawful Termination in Nevada
Legal Protections During Termination in Nevada
Terminated Employee Benefits in Nevada
Layoffs in Nevada
Resignations in Nevada
Legal Cases Related to Wrongful Termination in Nevada
Legal Considerations for Termination in Nevada
In Nevada, termination of employment must adhere to several legal considerations:
- Discrimination: Terminations cannot be based on race, color, religion, sex, sexual orientation, national origin, disability, or age, as protected under federal and state laws. Violations can lead to claims with the Nevada Equal Rights Commission (NERC) or the U.S. Equal Employment Opportunity Commission (EEOC).
- Retaliation: Employers cannot terminate employees in retaliation for exercising their legal rights, such as filing a workers’ compensation claim or reporting illegal activities.
- Contractual Obligations: If there is an employment contract or union agreement, termination must comply with the terms outlined in those agreements, including notice periods or specific conditions.
- Final Pay: Nevada law requires that terminated employees receive their final paycheck within the standard pay period if they give notice or within seven days if no notice is provided. This must include payment for all earned wages and any accrued vacation time if the employer’s policy or contract provides it.
- Unemployment Benefits: Employees terminated without cause may be eligible for unemployment benefits. Claims are evaluated based on the reason for termination and adherence to the law.
At-Will Employment in Nevada
What is At-Will Employment?
At-will employment is an employment doctrine that allows the employer or employee to terminate the employment relationship at any time, for any reason or no reason, and without prior notice.
Nevada follows the at-will doctrine, which provides flexibility for both parties. It allows employers to end employment without cause and employees to leave a job without needing to give a reason.
What are the Exceptions to At-Will Employment in Nevada?
While Nevada follows at-will employment, several exceptions protect employees from unjust terminations:
- Discrimination: Employees cannot be terminated based on race, color, religion, sex, sexual orientation, national origin, disability, or age, as such terminations violate federal and state anti-discrimination laws.
- Retaliation: Employers cannot terminate employees in retaliation for exercising their legal rights, such as filing a workers’ compensation claim, reporting illegal activities, or participating in investigations.
- Implied Contract: An implied contract occurs when an employer’s actions, statements, or policies suggest that employees will only be terminated for just cause, even if there is no formal written agreement. If an implied contract exists, employers cannot terminate without proper justification.
- Public Policy Violations: Termination is not allowed if it contravenes public policy, such as firing an employee for refusing to engage in illegal activities or for taking legally protected leave.
- Good Faith: This exception prevents terminations done in bad faith or with malicious intent, such as firing an employee to avoid paying benefits or violating fair dealing principles in the employment relationship.
Employment Under Contract in Nevada
Employment under contract in Nevada means that a written or verbal agreement between the employer and employee governs the terms and conditions of employment. This contract outlines specific terms, such as the duration of employment, compensation, job duties, and conditions for termination.
Unlike at-will employment, where either party can terminate the relationship without cause, employment contracts often require valid reasons for termination. They may include notice periods, severance agreements, or other protections for the employee.
If an employer violates the contract terms, the employee may have grounds for a breach-of-contract claim. Conversely, employees are bound by the contract terms and must fulfill their obligations as outlined. Contracts must comply with state and federal laws, including provisions related to wages, discrimination, and workplace rights.
Lawful Termination in Nevada
Legal Grounds for Termination in Nevada
In Nevada, employers may legally terminate employees for various reasons as long as the termination is not unlawful or discriminatory. Some common grounds for termination include:
- Performance-Related Issues: Employers can terminate employees for unsatisfactory job performance, provided the employee has been given a fair opportunity to improve and the performance issues have been documented.
- Misconduct: Employees can be terminated for misconduct, such as violating company policies, engaging in unethical behavior, or committing illegal acts. Misconduct must be well-documented to support the termination decision.
- Attendance Problems: Excessive absenteeism or tardiness can be grounds for termination, especially after receiving warnings, as long as it is consistent with company policies.
- Violation of Company Policies: Termination may occur if an employee breaches established company policies or procedures. The policies should be communicated and applied consistently.
- Business Necessity: Economic reasons, such as downsizing or restructuring, can also justify termination. These decisions should be based on legitimate business needs rather than discriminatory motives.
Read our comprehensive guide to firing employees in Nevada for further information.
How Do I File a Wrongful Termination Claim in Nevada?
Employees are encouraged to gather evidence, such as employment records, communications, and witness statements, before filing a wrongful termination claim in Nevada.
Employees can file wrongful termination claims with the Nevada Equal Rights Commission (NERC) or the U.S. Equal Employment Opportunity Commission (EEOC). These agencies will investigate the claim and may mediate it. If the issue is unresolved, employees can file a lawsuit in a Nevada state court.
Legal Protections During Termination in Nevada
Terminations in Nevada must comply with both federal and state laws to protect employees from illegal or unjust dismissal:
- Title VII of the Civil Rights Act of 1964: Title VII of the Civil Rights Act of 1964 is a federal law that prohibits employers from terminating employees based on race, color, religion, sex, or national origin. It applies to employers with 15 or more employees and protects workers from discriminatory firing practices.
- Americans with Disabilities Act (ADA): The ADA protects employees with disabilities from termination and requires employers to provide reasonable accommodations unless it causes undue hardship. This law applies to employers with 15 or more employees and ensures workers are not discriminated against due to disability.
- Age Discrimination in Employment Act (ADEA): The ADEA prohibits employers from terminating employees based on age if they are 40 or older. It applies to employers with 20 or more employees and is designed to protect older workers from age-based discrimination. Employees can file claims with the EEOC if they believe they have been terminated due to age.
- Family and Medical Leave Act (FMLA): The FMLA prohibits employers from terminating employees who take approved family or medical leave. It covers employers with 50 or more employees and provides up to 12 weeks of unpaid leave for qualifying medical or family reasons.
- Occupational Safety and Health Act (OSHA): The OSH Act of 1970 protects employees from being terminated for reporting unsafe working conditions or legal violations related to workplace safety. This law applies to most private employers, ensuring workers can voice concerns without fearing retaliation.
- Worker Adjustment and Retraining Notification (WARN) Act: The WARN Act requires employers with 100 or more employees to provide 60 days of notice for mass layoffs or plant closures.
- Nevada Employment Practices: The Nevada Revised Statutes (NRS) Chapter 613 prohibits discrimination in employment, aligning with federal protections but also covering additional traits like sexual orientation, gender identity, and criminal background.
- Nevada Wage Payment Laws: Nevada law (NRS 608.040) requires employers to provide terminated employees with their final paycheck, including any earned wages and unused vacation time, within seven days or by the next regular payday, whichever is earlier. Failure to comply can result in penalties for the employer.
- Nevada Anti-Retaliation Laws: Under Nevada law (NRS 281.631), employers cannot retaliate against employees for filing discrimination or workplace safety complaints. This provides additional protections to employees who assert their legal rights.
Terminated Employee Benefits in Nevada
Terminated employees in Nevada may be entitled to certain benefits depending on the circumstances of their termination:
- Unemployment Benefits: Employees terminated without a case (e.g., layoffs or downsizing) may be eligible for unemployment benefits through the Nevada Department of Employment, Training, and Rehabilitation (DETR). Employees terminated for misconduct are not eligible.
- Final Paycheck: Nevada law requires that terminated employees receive their final paycheck, including any earned wages and accrued vacation, within seven days of termination.
- Severance Pay: While Nevada law does not mandate severance pay, it may be provided if specified in the employee’s contract or company policy.
Layoffs in Nevada
In Nevada, federal law governs layoffs under the Worker Adjustment and Retraining Notification (WARN) Act. This law requires employers with 100 or more full-time employees to provide 60 days’ notice in the case of mass layoffs (50 or more employees) or plant closures. Employers who fail to provide the required notice may be liable for back pay and benefits to affected workers.
No state law in Nevada mandates advance notice of layoffs for smaller businesses. However, small business employers must still follow wage and hour laws, including timely payment of final wages.
Resignations in Nevada
In Nevada, resignations are classified as voluntary or involuntary. Here’s the definition of both types:
Voluntary Resignations
Voluntary resignation occurs when an employee leaves the job of their own accord. This can be for various reasons, such as personal reasons, career advancement, or job dissatisfaction.
While Nevada does not have a state law mandating advance notice of resignation, it is generally considered professional to provide at least two weeks’ notice. This helps ensure a smooth transition and maintains a positive relationship with the employer.
Upon voluntary resignation, the employer must pay the employee for all earned wages, including unused vacation time, if the employer’s policy or employment contract provides it. If notice is given, the employer must provide the final paycheck within Nevada’s standard pay period. If no notice is given, the employer must give the final paycheck within seven days of resignation.
Involuntary Resignations
An involuntary resignation, known as constructive discharge, occurs when an employee is pressured or feels forced to resign due to intolerable working conditions created by the employer. In such cases, the employee may be eligible for unemployment benefits or legal claims of wrongful termination if they can prove the resignation was due to a hostile work environment or other qualifying circumstances.
Legal Cases Related to Wrongful Termination in Nevada
1. Waste Disposal Company Pays Nearly $3 Million for Firing Employees Due to Age
In EEOC v. Republic Services, Inc., the U.S. Equal Employment Opportunity Commission (EEOC) revealed a troubling pattern of age discrimination at Republic Services and its subsidiary, Republic Silver State Disposal.
Between 2003 and 2005, the company allegedly terminated around 21 employees who were over the age of 40 from its southern Nevada facilities. These workers, who included long-serving garbage collectors, drivers, and supervisors, were dismissed and replaced by younger employees with fewer performance expectations.
The EEOC’s lawsuit filed in 2004 revealed not only discriminatory firings but also harsh workplace practices designed to force older employees out. The company was accused of using a tactic called “break him off,” where older workers were deliberately overburdened to the point of exhaustion, making their jobs nearly impossible to perform effectively. This deliberate mistreatment and discriminatory hiring practices highlighted a significant violation of the Age Discrimination in Employment Act (ADEA).
Republic Services agreed to pay $2,975,000 as part of the settlement and implement several reforms to address and prevent age discrimination. In addition to the monetary relief, the parties entered into a three-year agreement that mandated Republic Services to appoint a corporate equal employment opportunity compliance officer, audit employment practices, provide annual anti-discrimination training, and closely track future complaints.
Key Lessons Learned from the Case:
- Employers must uphold anti-discrimination laws and ensure that age does not unfairly influence employment decisions.
- Legal settlements often involve financial compensation and comprehensive changes to company policies to prevent future discrimination.
- Effective anti-discrimination measures include policy reviews, employee training, and regular monitoring to foster a fair workplace.
2. Car Dealership Settles $110,000 in Sexual Harassment and Retaliatory Firing
In the case of EEOC v. Bill Heard Chevrolet Corp., the EEOC uncovered several instances of sexual harassment and retaliation at the Las Vegas car dealership. The lawsuit revealed that women employees at Bill Heard Chevrolet were subjected to inappropriate behavior from management and coworkers, including unwanted physical contact, crude remarks, and persistent sexual advances. The harassment also extended to verbal abuse, with women being told that their presence in the car business was unwelcome. When the employees tried to report the misconduct, they faced retaliation, including disciplinary actions, demotions, and terminations.
The EEOC’s lawsuit, filed after unsuccessful attempts at a pre-litigation settlement, led to a resolution in which Bill Heard Chevrolet agreed to pay $110,000 to nine claimants and implement measures to prevent future discriminatory practices. The settlement also included commitments to cease any further retaliatory actions against employees who reported harassment or discrimination.
Key Lessons Learned from the Case:
- Employers must take proactive measures to prevent and address sexual harassment and retaliation in the workplace.
- Legal actions can result in significant financial settlements and require companies to adopt comprehensive anti-discrimination policies.
- Companies must create a respectful and safe work environment where employees can report misconduct without fear of retaliation.
Learn more about Nevada Labor Laws through our detailed guide.
Important Cautionary Note
This content is provided for informational purposes only. While we make every effort to ensure the accuracy of the information presented, we cannot guarantee that it is free of errors or omissions. Users are advised to independently verify any critical information and should not solely rely on the content provided.