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Legislative Wrap Up - Governor Sandoval Vetoes Several Labor And Employment Bills

Volume 16, Issue 12
June 29 , 2017

Below is a summary of a few of the key labor and employment-related bills that were passed by the Legislature but vetoed by Governor Sandoval.

Senate Bill 196: Paid Sick Leave. Status: VETOED.

Senate Bill 196 required a private employer with 25 or more employees to provide full-time employees with paid sick leave. Governor Sandoval vetoed this bill because he believes it "presents substantial economic burden on small business, upsets competition for employees, and could hinder Nevada's business friendly reputation."

Assembly Bill 175: Addition to Minimum Wage Amendment. Status: VETOED.

The Minimum Wage Amendment ("MWA") requires a Nevada employer to pay one of two minimum wage rates to its employees, depending on whether the employer offers qualifying health benefits to those employees. Assembly Bill 175 specified the minimum level of health benefits that an employer must make available for the purpose of determining whether the employer is authorized to pay the lower minimum wage. The Governor vetoed this bill as "constitutionally suspect." He objected to         "[i]mposing a rigid, statutory definition" on health benefits as conflicting with the "careful, incentive-based balance that Nevada's voters approved in 2006" when the MWA was passed.

Senate Bill 106: Minimum Wage Increase. Status: VETOED.

Senate Bill 106 sought to increase Nevada's minimum wage by 75 cents for five years until it reaches $12 or more (if the employer does not offer health insurance), or $11 or more (if the employer offers health insurance). The Governor vetoed this bill because he believes it would "place a significant burden on the State's small business employers at a time when they are emerging from a downturn that cost hundreds of thousands of jobs and closed the doors of businesses across the State."

Senate Bill 397: Expanding NERC's Power. Status: VETOED.

Among other matters, Senate Bill 397 increased the remedies available to the Nevada Equal Rights Commission ("NERC") upon a finding of an unlawful employment practice, giving NERC the ability to award back pay, compensatory and punitive damages, and costs and reasonable attorney's fees. The Governor vetoed this bill because he believes it "expands the authority and jurisdiction of [NERC] beyond that which is necessary and encroaches upon matters better reserved with the courts."

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.