Nevada employers may be happy to learn that as a result of a November 8, 2022, ballot measure passing, Nevada’s two-tier minimum wage will be no more. The two-tier minimum wage system reduced the required minimum wage if an employer offered qualifying health benefits. This change means that all employees will be entitled to the same minimum hourly wage regardless of whether they receive qualifying health benefits. Starting July 1, 2024, the minimum wage will increase to $12 per hour for all Nevada workers who are not exempt from minimum wage requirements, regardless of whether the employer offered qualifying health benefits. See 2024 Minimum Wage Bulletin.

Another significant change for Nevada employers to note is that a change to the minimum wage automatically increases the daily overtime rate. Employers who do not pay their employees $18.00 per hour or more must pay employees daily overtime for time worked over eight hours in a workday or forty hours a week. However, employers are not obligated to pay daily overtime if the employee earns 1 1/2 times the minimum wage (in this case, $18.00 per hour) or if, by mutual agreement, the employee works a scheduled 10 hours per day for four calendar days within any scheduled week of work.

It is crucial for Nevada employers to review their employees’ compensation in light of the upcoming minimum wage changes. This review will help determine whether wage increases or changes in scheduling practices are necessary to comply with the new regulations.