Minimum Wage Increase 2023
It’s official, Nevada’s minimum wage and daily overtime rates will increase effective July 1, 2023. What does this mean to you and your business? How much will this affect your current cash flow and business projections? The State of Nevada has a two-tier minimum wage system based on qualifying health benefits being offered to employees. Do you know the best way to effectively manage the tier system and what these two options mean to your business? TPC The Payroll Company, HR Consultants is here to help.
Tier 1: If you do offer health benefits to your employees then, for the period covering July 1, 2023, through June 30, 2024, the minimum wage rate is increased to $10.25 per hour for the employees being offered qualifying health benefits.
Tier 2: However, for employees not qualifying or receiving health benefits the new minimum wage rate is $11.25 an hour. An increase in the minimum wage will also increase the daily overtime rates for the same period beginning July 1, except for those employees exempted from overtime requirements. (See NRS 608.018 for details).
Employees in Nevada that earn more than one and one-half times the minimum wage for both tiers – $15.375 per hour for those offered health benefits and $16.875 per hour for those not offered health benefits- are eligible for overtime at one and one-half times their regular rate of pay for over 40 hours of work in a week.
For employees that earn less than the amounts listed above, in addition to overtime pay after the traditional 40-hour week, Nevada law also provides for overtime pay at one and one-half times an employee’s regular rate of pay for working more than 8 hours in a 24-hour period.
The annual bulletins for minimum wage and overtime can be found at http://labor.nv.gov.
You should respond to these changes by evaluating employee policies and handbooks and ensuring appropriate changes are made to payroll. Violations of the minimum wage law may entitle an employee to a civil action for back pay, damages, injunctive relief, attorneys’ fees, and any other relief that is permitted under the law.
The Office of the Labor Commissioner reminds Nevada employers that the minimum wage will increase effective July 1, 2023. (Assembly Bill 456, passed by the 2019 Nevada Legislature, increases the minimum wage in increments of 75 cents annually through 2024.). This bill will be completed with the final July 1st, 2024 increase to $11.00 for employees not receiving health benefits and $12.00 to those employees receiving health benefits. The Nevada State Legislature is then open to put forward new legislation for additional increases to the lawful minimum wage rate.
Pick up the phone or email us for more information on how TPC The Payroll Company, HR Consultants can help you navigate these changes and more at Marketing@TPCLV.com | 877-507-4800 and we’ll call you right back! Check out our website: TPC Payroll HR