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Annual Increases to Nevada and Federal Minimum Wage

Volume 8, Issue 7
May 14, 2009

On April 1, 2009, the Nevada Labor Commissioner issued a Minimum Wage Annual Bulletin and a Daily Overtime Annual Bulletin to notify employers of the annual increase in Nevada's minimum wage. The increase takes effect on July 1, 2009. Pursuant to federal legislation enacted in 2007, the federal minimum wage also increases this year on July 24, 2009. The result for Nevada employers is detailed below.

What is the change to Nevada's minimum wage tiers?

As of July 1, 2009, Nevada's minimum wage changes as follows: Lower tier: $6.55 per hour for employees who are offered qualified health benefitsUpper tier: $7.55 per hour for all other employees

How does this impact Nevada's daily overtime rates?

Under Nevada law, an employee who earns less than 1 ½ times the minimum wage is entitled to daily overtime for all hours worked over eight (8) in any workday. Given the annual increase in the minimum wage, as of July 1, 2009, Nevada's daily overtime rates increase as follows: Lower tier: Employees making less than $9.825 per hourUpper tier: Employees making less than $11.325 per hour

What about the increase to the federal minimum wage?

On July 24, 2009, the federal minimum wage increases to $7.25 an hour. See http://www.kzalaw.com/reports.php?vol=6&iss=5&art=1. As such, absent an exemption from the requirements of the federal minimum wage, most Nevada employers should use the following figures for minimum wage as of July 24, 2009: Lower tier: $7.25 per hourUpper tier: $7.55 per hour For daily overtime calculations, however, employers should use the Nevada daily overtime rates set forth above.

Do I have to provide notice of these increases to my employees?

Yes. Nevada law requires that employers provide written notification of the rate adjustments to each employee.

What does the future hold?

The constitutional amendment which changed Nevada's minimum wage in 2006 provides that the Nevada minimum wage rates "shall be adjusted by the amount of increases in the federal minimum wage over $5.15 per hour, or, if greater, by the cumulative increase in the cost of living." The 2007 federal legislation signed by President Bush to increase the federal minimum wage over the course of three years does not provide for any further increases to the federal minimum wage. In other words, 2009 is the final year for the federal minimum wage increase under that law. While President Obama promised during his campaign to raise the federal minimum wage to $9.50 an hour by 2011, it is unclear when and if this issue will actually resurface in Congress. Until then, additional increases to Nevada's minimum wage should now seemingly be based only upon the cost of living.

For more information, employers may wish to consult the following references:

- Office of the Labor Commissioner, Minimum Wage 2009 Annual Bulletin, April 1, 2009:  http://www.laborcommissioner.com/

- Office of the Labor Commissioner, Daily Overtime 2009 Annual Bulletin, April 1, 2009: http://www.laborcommissioner.com/

- Nevada Revised Statutes on Minimum Wage and Overtime - NRS Ch. 608: http://www.leg.state.nv.us/nrs/NRS-608.html#NRS608Sec018

Employer Report articles are for general information only; they are not intended and should not be construed to be legal advice. Reading or replying to such articles does not establish an attorney-client relationship. In addition, because the subject matters and applicable laws discussed in Employer Report articles are often in a state of change and not always applicable to every type of business entity or organization, readers should consult with counsel before making decisions based on the same.