The Nevada Overtime Law You Could Be Breaking — And What You Can Do to Comply

Joseph Patterson | October 19, 2017
Employees in Nevada could be missing out on overtime pay because of a little-known labor law. That’s right: In the great state of Nevada, employers are required to pay overtime to
  • Employees who make $10.88 per hour, receive benefits, and work over eight hours in a 24-hour period.
  • Employees who don’t receive benefits, whose time-and-a-half wages are less than $12.38, and who work over eight hours in a 24-hour period.
The 24-hour period begins when employees first clock in for the day. For example: If employees clock in for their shifts at 9 a.m., any time worked over eight hours, before 9 a.m. the next day, is overtime. If you didn’t know about Nevada’s overtime law, you’re not alone. Most people don’t. In a recent survey, 73% of 500 respondents said they had never heard of it. This law has been in effect since way back in July 2015, but many Nevada employers are unaware of the requirements. Why is this such a big deal? For some businesses, being unaware of the law, or not following it correctly, could be a very costly mistake.  

Rolling overtime: Nevada’s most public “secret”

TSheetsPRO and certified professional bookkeeper Danie Ives of Adjusted Balance said even though there are plenty of blogs, bulletins, and official state updates available, not everyone knows about the law. “It’s like this weird secret that nobody is aware of, except it’s everywhere,” said Ives. Weird secret, indeed! But in some industries, awareness and compliance could save employers thousands. She said, for employers in the restaurant, hospitality, and retail industry, going into that rolling 24-hour overtime is common. “It’s tricky with restaurants,” said Ives, pointing to employees who clock in around 4 p.m. to close the restaurant at night and come in the morning to open. If they work from 8 a.m. to 3 p.m. the following day, they’re entitled to overtime for the entire second shift. Ives also mentioned the frustration many employers experience as a result of the law. “A small minority of Nevada employers are frustrated because they don’t know how to do [overtime] right, and the rest of them aren’t even aware that they're supposed to be doing it that way,” she said.  

Noncompliance could get messy

Employers who do not properly track employee time worked in a 24-hour period are subject to painstaking paperwork to figure out what went wrong and how much they owe. An employee can learn about the rule, realize they’re entitled to a ton of back pay, and soon find themselves wrapped up in a lawsuit with their employer. “If nothing else, you have to go back and do administrative work and figure out how much it was,” said Ives. “As an employer, you still have to do the work and figure out how much you owe [employees] in overtime.” Ives said Department of Employment, Training, and Rehabilitation (DETR) audits can sometimes take an entire 40 hours (yuh-yikes) just to make sure a business is in compliance. And that might not even be the end of it if the DETR finds mistakes. “When they find something, they keep going back until the stop finding things,” she said. ”Not a good thing.” And if an employee comes forward claiming their employer owes them overtime, the employer could face penalties if they retaliate.

How employers can remain compliant

The laws are certainly tricky, and adding up employee hours by hand isn’t the most efficient way to keep track of the 24-hour rule. It’s important to keep an eye on the shifts your employees are working, as well as the start times and duration of the shifts they’re scheduled to work the following day. Remember, the 24-hour period begins when the employee clocks in, so anything over eight hours within the following 24 hours is overtime. Understanding this information is key to complying with Nevada overtime laws and avoiding any penalties. The best way employers can comply with the law is to be diligent in keeping accurate employee timesheets and smart employee schedules. TSheets has a simple, smart, cloud-based scheduling tool and drag-and-drop functionality, so employers can see how many employee hours fall within a 24-hour timeframe.  

Stay compliant with Nevada overtime laws with TSheets’ accurate time tracking and easy employee scheduling — free for 14 days!

A little about Joseph Patterson

Related posts

Katherine McBeth|March 26, 2020

Free webinar: Survival tips for small businesses during COVID-19

Editor’s note: Webinar registration has closed. Our small business panel shared creative tips for finding new revenue streams and[...]

Katherine McBeth|March 23, 2020

6 principles of a growth mindset for professional development

March 8 marked the global celebration of International Women’s Day. At Intuit’s Boise site, we celebrated with an inspiring fireside[...]

Katherine McBeth|March 18, 2020

5 ways your local SBDC can help you start and run your business

Only about half of businesses will make it to their fifth year, according to the Bureau of Labor Statistics. 49.3% of businesses that[...]