Nevada Governor Steve Sisolak signed Senate Bill 312into law on June 12, 2019. The new Nevada labor law requires private employers to provide their employees up to 40 hours of paid leave time each year. Employees can use their paid leave time for any reason.  

Beginning January 1, 2020, all private employers in the state who employ 50 or more employees must provide paid leave to their employees. The law allows employers to have employees accrue their paid time off over the year. This law was briefly discussed in this article along with other recent Nevada labor law developments. 

Employee Accrual of Paid Time Off

Under the new law, employers can provide paid time off on an annual accrual basis or by providing the total number of paid time off hours on the first day of the employee’s benefit year. If the employer uses the accrual method, employees accrue their paid leave throughout the year under a statutory formula. 

If an employer chooses to give the employees their expected time off for the year at the beginning of the year, the employer could under calculate the employee’s time. This could lead to a legal action by the Nevada Labor Commissioner for failure to follow the law. The employer may also overstate the amount of time. The law does not have a provision allowing an employer to take back overstated or overpaid time.

Employers can make new employees wait 90 days before they can use their paid leave time. Employers are permitted to limit the total amount of leave an employee can carry over to the next year. Employees cannot carry over more than 40 hours per year.

Payment for Paid Leave Time

Employers are required to pay their employees for their paid leave time at the employee’s rate of pay. The employer payment for paid leave time is “on the same payday as the hours taken are normally paid.” Employers and employees can easily calculate the amounts for hourly employees. Employer and employee calculation of leave pay for employees paid on an other than hourly basis (e.g. salary, commission, or by the piece) is more difficult. They can calculate the wage by dividing the employee’s wages earned during the prior 90 days by the hours the employee worked during those 90 days. The calculation does not include discretionary bonuses, overtime, hazard, premium, or holiday pay. It also does not include employee tips.

Upon an employee’s termination, employers are not required to pay an employee for their accrued but unused paid time off. If the employer chooses to do so, it can pay employees for that time.

Employer Reporting, Recordkeeping and Nevada Labor Commissioner Enforcement

Under this new law, employers must: 

1. “Maintain a record of the receipt or accrual and use of paid leave” for a period of at least one year.
2. Give these records to the Nevada Labor Commissioner upon her request.
3. “Provide…each employee on each payday an accounting of the hours of paid leave available for use by that employee.” 

The Nevada Labor Commissioner enforces the new law. The Labor Commissioner actually enforces all Nevada labor laws. Employers who violate the law are subject to administrative penalties from the Labor Commissioner. The Labor Commissioner can also refer any employer violations of the law to the proper district attorney’s office or to the Nevada Attorney General for prosecution. An employer’s violation of the new law is a misdemeanor. Consequently, employers should be very careful when calculating paid leave. 

Exempt Employers and Employees

Senate Bill 312 exempts certain employers from its coverage. Those exemptions are:

1. Any employer with fewer than 50 employees in Nevada;
2. Any employer in its first 2 years of operation; and  
3. Any employer who provides paid leave in an equivalent amount to what the law requires under a collective bargaining agreement.

Obtaining Advice on Nevada Labor Law Concerns

This article provides legal information. It is not legal advice. It does not create an attorney-client relationship between any reader and the author of the article. The only way to obtain legal advice on your specific Nevada labor law concern is by retaining a licensed Nevada attorney.