Overview: Nevada has enacted legislation that will require certain employers to provide paid leave to employees.
Effective Date: January 1, 2020
Nevada has enacted legislation (Senate Bill 312) that will require certain employers to provide paid leave to employees. Senate Bill 312 takes effect January 1, 2020.
Senate Bill 312 covers private employers with 50 or more employees in the state.
New employers are exempt from the law for their first two years of operation.
Employers are also exempt if, pursuant to a contract, policy, collective bargaining agreement, or other agreement, the employer provides employees with a paid leave or paid time off policy at a rate of at least 0.01923 hours of paid leave per hour of work performed. Before applying this exemption, employers should consider consulting legal counsel to assess whether the exemption applies to their business.
The law generally covers all employees except temporary, seasonal, and on-call employees, although those terms aren’t defined in the law itself.
Accrual and Carryover:
Covered employees are entitled to at least 0.01923 hours of paid leave for each hour of work performed. Employers can choose to provide employees with all of the leave for which they’re entitled at the start of the benefit year, or require employees to accrue the leave throughout the year. Employees who accrue their paid leave are entitled to carryover up to 40 hours of unused leave to the following year.
Employers may limit the use of paid leave to 40 hours per year. Employees may use leave for any reason and are entitled to leave without having to disclose the reason to their employer. Employers may make employees wait until their 90th day of employment with before they can use paid leave.
Employers are prohibited from requiring employees to find a replacement in order to use leave.
Pay During Leave:
Employees on paid leave must be paid at the rate at which they are compensated at the time the leave is taken. They must also receive such pay on the same payday as the hours taken would normally be paid.
The compensation rate for employees who are paid salary, commission, piece rate, or any other method other than hourly must be calculated by dividing the employee’s total wages in the 90 days immediately preceding leave by the number of hours worked during that period. Nondiscretionary bonuses must be included in the calculation.
Employees must provide notice of their use of paid leave as soon as practical.
Employer Notice and Recordkeeping:
Covered employers are required to display a notice about the law in a conspicuous location in each workplace. The Labor Commissioner is responsible for creating the notice for employers to use.
Employers must retain a record of paid leave accrual/frontloading and use. Employers must retain the records for at least one year from the date in which the entries were made.
On each payday, employers must provide each employee with the amount of paid leave hours available to them.
Employers are prohibited from retaliating against employees for using paid leave.
Action Required: Covered employers should review their policies and practices to ensure compliance with Senate Bill 312.
Please contact your dedicated service professional with any questions.
This content provides practical information concerning the subject matter covered and is provided with the understanding that ADP is not rendering legal advice.