Please note that the information contained in this article is limited in scope and is only intended as a high-level overview of the topics discussed. The information is current as of the publication date only, and the laws (and associated agency and/or judicial interpretations) on the topics discussed could change at any point in the future. Block, Inc. (including its affiliates, subsidiaries, employees, officers, directors, attorneys, and tax advisors) undertakes no obligation to update this article for future changes in the law. In addition, laws vary by jurisdiction, and this article does not attempt to address all jurisdictions — for example, states, counties, or cities often have requirements that differ from federal law. Nothing in this article is or should be used as tax or legal advice. In particular, this article cannot be relied upon for the purposes of avoiding taxes, penalties, or other obligations under applicable law. For guidance or advice specific to your business, you should consult with a qualified tax and/or legal professional.
We’ve put together this informative guide on the changing minimum wage in Nevada.
What is the minimum wage in Nevada?
The current minimum wage in Nevada is $9.75 an hour. As of the writing of this article, that’s $2.50 more than the federal minimum wage. The last time the minimum wage changed in Nevada was back in 2008, when it was raised from $6.85 to $9.75.
However, there are nuances to the minimum wage in Nevada. For example, the $9.75 number is the minimum wage for companies that don’t offer qualifying health benefits. If a company does offer qualifying health benefits, the minimum wage drops to $8.75.
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Will the minimum wage change in 2022?
In Nevada, the constitution requires the minimum wage to be examined and changed every year according to the Consumer Price Index. And recently, a law was passed that put forth a plan to raise the minimum wage over the next few years.
The minimum wage in Nevada will increase to $9.50 on July 1, 2022, for employers who provide health benefits. For employers who don’t provide health benefits, the minimum wage will increase to $10.50 on July 1, 2022.
What about tipped employees?
Nevada is a unique state when it comes to tipped wages.
Nevada is one of very few states that requires employers to pay tipped workers at the same rate as other employees. Additionally, employees in training must be paid the minimum wage with no deduction.
Are there plans to change the minimum wage beyond 2022?
Beyond 2022, there are plans for the minimum wage to increase year over year. Below you’ll find a breakdown of the changes set forth in the recent legislation.
|Effective date||Employer With Qualifying Benefits||Employer Without Qualifying Benefits|
|July 1, 2023||$10.25||$11.25|
|July 1, 2024||$11.00||$12.00|
How should small business owners prepare for changes to the minimum wage in Nevada?
The minimum wage in Nevada is constantly changing, which is why it’s important to remain aware of how your business will be affected. It’s also important to analyze your business type to better understand which tier you fall into when it comes to the differing minimum wages and how they will affect your business and your employees. Take the below into consideration when evaluating the Nevada minimum wage changes.
Audit your expenses. The best way to prepare for a state increase in minimum wage rates is to take a full look at your business expenses and see where you can make necessary cuts or changes.
Make the right hires. When you hire the right employees you can ensure proper retention, engagement, and productivity. Once they’re onboarded, make sure you build a relationship and provide paths for growth, and ensure you are keeping valuable employees and promoting effective and efficient employee engagement.
Update your technology. New technology can pave the way for growth and success for your business. Square Payroll for small businesses has features that allow you to get some time back and focus more on running your business than on doing paperwork, showing how technological investment can drive success.