The Nevada Labor Commissioner’s office has recently given insight into certain areas of state wage and hour laws upon which the Commissioner intends to focus enforcement efforts. The first involves “daily-rated” employees — those employees who receive a guaranteed base salary, but will also receive an additional “daily-rate” for each shift actually worked. Typically, daily-rated employees are exempt from the overtime provisions of state wage and hour laws. However, the Commissioner has indicated that he will no longer accept daily-rated arrangements without actual documentation of an agreement between employer and employee. As such, Nevada employers who utilize daily-rated employees should ensure that each arrangement is properly documented. At the very least, documentation should include a letter to the employee outlining the parameters of his or her guaranteed salary and a written acceptance of the guarantee signed by the employee.
The second area which will garner attention is employer use of timeclocks utilizing an automatic cutoff. On an increasing basis, employers are using such mechanisms which automatically “clock-out” an employee when he or she has worked eight hours. The rationale is that such clocks will reduce an employer’s overtime costs. However, state wage and hour laws mandate that employees must be paid for all time worked, whether approved or not, and simply limiting an employee’s time-sheet to eight hours a day will not eliminate overtime liability. The only legitimate way to reduce overtime costs is to have supervisors consistently monitor employees and have them leave the work area at the completion of their shift unless overtime has been previously approved.