Understanding Overtime Law For Medical Assistants In Nevada

In Nevada, overtime laws are designed to protect the rights of employers and employees, but employers have compliance obligations that they must fulfil. These overtime laws ensure employers follow the federal and state-mandated rules regarding overtime and accurate wages.

Nevada law on overtime mandates that employers must pay to compensate eligible employees for any hours worked beyond 40 in a workweek at a rate of 1.5 times their regular hourly wage. This is commonly referred to as time and a half. For example, if an employee’s regular hourly rate is $15, their overtime rate would be $22.50 per hour ($15 + $7.50).

The overtime pay laws in Nevada follow the federal guidelines and require employers to pay overtime for any hours worked over 40 in a workweek. In some industries like retail and hospitality, overtime may apply to hours over 8 in a single workday. Additionally, employers must keep accurate records of all hours worked by non-exempt employees.

Nevada overtime laws are a culmination of both state and federal statutes. Employers must be aware of both to be compliant.

Nevada Statutory Bodies

Nevada Revised Statutes (NRS) Chapter 608 is the group of the basic overtime provisions in Nevada that all employers must follow. It outlines the overtime pay requirements, including the pay rate, eligibility criteria, and exemptions.

Another state provision is the Nevada Administrative Code (NAC) Chapter 608, which provides additional regulations and interpretations of the NRS provisions. It provides clear guidance to employers and employees on how to comply with the Nevada law on overtime.

Federal Statutes: Fair Labor Standards Act (FLSA)

The FLSA is the primary federal law that governs the minimum wage, overtime pay requirements, child labor standards, and record-keeping requirements for employers throughout the United States.

The FLSA states that every non-exempt employee is eligible for overtime for hours worked over 40 in a workweek. Also, the overtime rate cannot be less than one and a half times their regular wage rate. The federal statute also outlines exemptions for certain employees and industries from overtime requirements.

While Nevada has its overtime laws, it must comply with the minimum standards set by the FLSA.

Overtime pay rates in Nevada

Nevada's overtime laws are applicable to most employees and exceed federal requirements. The overtime rate in Nevada is 1.5 times the employee's regular rate of pay for:

• All hours worked in excess of 40 hours in a workweek
• All hours worked in excess of 8 hours in a 24-hour period, if the employee earns less than 1.5 times the applicable minimum wage

Nevada's minimum wage is currently $12 per hour, making the minimum overtime rate $18 per hour. It's important to note that employees who work 40 hours or less in a week are generally not entitled to overtime pay, even if they work on weekends or holidays.

Certain categories of employees are exempt from Nevada's overtime laws, including:

• Professional, administrative, or executive employees
• Employees covered by a collective bargaining agreement that provides for overtime
• Railroad or airline employees
• Certain motor carrier employees, such as drivers, loaders, and mechanics
• Taxi, limo, or delivery drivers
• Automobile salespeople and mechanics
• Employees of businesses with a gross sales volume of less than $250,000 annually
• Domestic servants who live where they work and agree in writing to forgo overtime pay
• Employees in a retail or service business whose regular rate is more than 1.5 times the minimum wage, and more than half their compensation comes from commissions

Employees who believe they have not been paid proper overtime wages can attempt to resolve the matter with their employer or file a claim with the Nevada Office of the Labor Commissioner.

Who is eligible for overtime pay in Nevada?

In Nevada, most non-exempt employees are eligible for overtime pay, including hourly workers and salaried employees, such as computer professionals, earning less than $684 per week. Eligible workers generally have non-managerial roles and do not exercise significant independent judgment. Retail workers, restaurant staff, construction workers, and administrative assistants are some examples of employees eligible for overtime in the state.

Some white-collar workers may be exempt from overtime pay if they meet specific criteria related to their job duties and salary level. For instance, salaried employees earning over $684 per week are not eligible for overtime under Nevada overtime laws. All eligible white-collar workers are paid 1.5 times their regular wage rate.

Professions eligible for overtime include:

• Retail sales associates
• Construction workers
• Manufacturing employees
• Administrative assistants
• Customer service representatives

Some additional eligibility requirements for white-collar employees may include:

• Being paid hourly rather than a salary
• Not having significant managerial responsibilities
• Not exercising independent judgment in job duties

What is the penalty for failing to pay overtime in Nevada?

In Nevada, employees who are not paid proper overtime wages can file a claim with the Nevada Office of the Labor Commissioner. However, the worker must first make a "good faith effort" to try to settle the matter with the employer. If the employer refuses to pay, the employee may submit a claim for wages form online. The Labor Commissioner may then hold a hearing, which is similar to a mini-trial, and hand down binding decisions that could be upheld and enforced in state court.

Workers also have the option of suing employers in court instead of filing a claim with the Labor Commissioner. Depending on the case, it may be more cost-effective and quick to rely on the Labor Commissioner instead of the courts. An employment law attorney can help the worker decide which route would be best for their situation.

Overtime pay for salaried employees

Nevada Overtime Laws

Nevada employers are required to pay employees for every hour they work. If an employee works more than 40 hours a week, the overtime rate is one and a half times the employee's regular rate, called "time and a half" pay. This rate also applies if an employee works more than eight hours in a day and their regular pay rate is less than one and a half times the Nevada minimum wage rate.

Federal Overtime Laws

The Fair Labor Standards Act (FLSA) requires that when most workers work more than 40 hours in a week, they get paid more. Overtime protections have been a critical part of the FLSA since 1938 and were established to protect workers from exploitation and benefit workers, their families, and communities.

Some workers are specifically exempt from the FLSA's minimum wage and overtime protections, including bona fide executive, administrative, or professional employees. This exemption, typically referred to as the "EAP" exemption, applies when:

• An employee is paid a salary.
• The salary is not less than a minimum salary threshold amount.
• The employee primarily performs executive, administrative, or professional duties.

New Overtime Rule

The U.S. Department of Labor's new overtime rule, which will go into effect on July 1, 2024, will increase the standard salary level that helps define and delimit which salaried workers are entitled to overtime pay protections under the FLSA. Starting July 1, most salaried workers who earn less than $844 per week will become eligible for overtime pay under the final rule. And on January 1, 2025, most salaried workers who make less than $1,128 per week will become eligible for overtime pay.

Overtime pay for tipped employees

In Nevada, employers are required to pay employees for every hour they work. If an employee works more than 40 hours a week, the overtime rate is one and a half times the employee's standard hourly wage. This is called "time and a half" pay.

The overtime rate of 1.5 times the employee's regular rate applies if:

• The employee works more than 8 hours in a workday, and
• The employee's regular pay rate is less than 1.5 times Nevada's minimum wage rate.

Nevada's current minimum wage is $12.00 per hour, and the minimum overtime rate is $18.00 per hour.

It is important to note that employees who agree to work four 10-hour shifts are not entitled to "time and a half" overtime wages, even if they work more than eight hours in a 24-hour period. Additionally, employees who work 40 hours a week or less are generally not entitled to "time and a half" overtime pay, even if they work on weekends or holidays.

Not all employees are entitled to "time and a half" overtime pay under Nevada law. Some employees who are exempt from these laws include:

• Professional, administrative, or executive employees
• Employees covered by a collective bargaining agreement that provides for overtime
• Railroad or airline employees
• Certain motor carrier employees, including drivers, loaders, and mechanics
• Taxi, limo, or delivery drivers
• Automobile salespeople and mechanics
• Employees of businesses with a gross sales volume of less than $250,000 annually
• Domestic servants who live where they work and agree in writing to forgo overtime pay
• Employees in a retail or service business if their regular rate is more than 1.5 times the minimum wage, and more than half their compensation comes from commissions

The broadest category of "overtime-exempt" workers is "professional, administrative, or executive employees." Examples of these types of employees include:

• Operating engineers
• Construction workers
• Highway patrol officers
• Correctional officers
• Parole or probation officers
• Emergency medical technicians
• Ambulance personnel
• Rescue workers
• Hazardous materials workers

It is important to note that employees may contract with their employers to make their own agreements regarding overtime pay that differs from Nevada law. As long as the contract is legal, it takes precedence over the state's overtime laws.

When it comes to tipped employees, the Fair Labor and Standards Act (FLSA) makes an exception to the federal minimum wage. Employers in specific industries, such as restaurants, can pay eligible employees who receive tips, like servers, a lower minimum wage.

The federal minimum wage is currently $7.25 per hour. Employers can claim a "tip credit" toward the federal minimum wage to pay certain employees a tipped minimum wage. The maximum tip credit an employer can claim is $5.12 per hour, making the federal tipped minimum wage $2.13 per hour.

To calculate overtime pay for tipped employees, follow these steps:

• Multiply the federal minimum wage by one and a half
• Determine the employer's tip credit by subtracting the amount the employer is paying as a direct cash wage from the federal minimum wage
• Subtract the tip credit from step two from the overtime rate from step one to determine the employee's overtime wage rate
• Multiply your overtime wage rate by the number of overtime hours worked

For example, if a tipped employee earns $2.13 per hour and works 10 hours of overtime during the week, first, take the federal minimum wage of $7.25 and multiply it by one and a half, resulting in $10.88. Then, subtract the tip credit of $5.12 from $10.88, resulting in an overtime wage rate of $5.76. Finally, multiply the overtime wage rate of $5.76 by the 10 overtime hours worked, resulting in $57.60 in overtime wages.

It is important to note that minimum wage rates, both federal and state, and tipped minimum wage rates vary by state. Therefore, employers should check with their state to ensure they are paying employees the correct rate.

Frequently asked questions