By Kurt Faux
Many employers wonder what the law is for holiday and overtime pay. Here we will highlight the law applicable to both:
The Fair Labor Standards Act (29 U.S.C. § 203) requires that contractors and subcontractors pay only for time worked. Employees are not entitled to overtime payment or payment at all (unless they work that day) during a federal holiday just because it is a holiday. Similarly, Nevada state law does not require private employers to provide paid holidays to construction employees, office employees and or service workers such as plumbers. However, as a matter of accommodation, incentive, employee benefit, morale etc. many employers provide extra pay for working on a holiday, allow time off, or provide a paid holiday – it is the employer’s discretion or addressed in the employment manual/contract. However, once it becomes a company practice to pay extra for holiday work, etc., then the door is opened that it has become an ongoing obligation of the company absent the company clearly disclaiming the ongoing obligation (this is the conservative approach to avoid issues).
Nevada Revised Statute 608.018 (2) provides:
2. An employer shall pay 1 1/2 times an employee’s regular wage rate whenever an employee who receives compensation for employment at a rate not less than 1 1/2 times the minimum rate prescribed pursuant to NRS 608.250 works more than 40 hours in any scheduled week of work.
This means that if an employee makes less than one and one half times minimum wage ($12.375 without insurance / $10.875 with insurance) per hour, the employee would be paid overtime for time worked over 8 hours in a 24- hour period. If an employee makes more than one and one half times the minimum wage, the employee would be paid overtime for time worked over 40 hours in a week. The only exception is if an employee agrees to work 4 – 10 hour shifts. See, NRS 608.018(1b). However, any deviations from the 4-10 rule could cause overtime to accrue. There are exceptions to the statute that can be found under NRS 608.018(3), which are:
(a) Except as otherwise provided in paragraphs (o) and (p), employees who are not covered by the minimum wage provisions of NRS 608.250;
(b) Outside buyers;
(c) Employees in a retail or service business if their regular rate is more than 1 1/2 times the minimum wage, and more than half their compensation for a representative period comes from commissions on goods or services, with the representative period being, to the extent allowed pursuant to federal law, not less than 1 month;
(d) Employees who are employed in bona fide executive, administrative or professional capacities;
(e) Employees covered by collective bargaining agreements which provide otherwise for overtime;
(f) Drivers, drivers’ helpers, loaders and mechanics for motor carriers subject to the Motor Carrier Act of 1935, as amended;
(g) Employees of a railroad;
(h) Employees of a carrier by air;
(i) Drivers or drivers’ helpers making local deliveries and paid on a trip-rate basis or other delivery payment plan;
(j) Drivers of taxicabs or limousines;
(k) Agricultural employees;
(l) Employees of business enterprises having a gross sales volume of less than $250,000 per year;
(m) Any salesperson or mechanic primarily engaged in selling or servicing automobiles, trucks or farm equipment;
(n) A mechanic or worker for any hours to which the provisions of subsection 3 or 4 of NRS 338.020 apply;
(o) A domestic worker who resides in the household where he or she works if the domestic worker and his or her employer agree in writing to exempt the domestic worker from the requirements of subsections 1 and 2; and
(p) A domestic service employee who resides in the household where he or she works if the domestic service employee and his or her employer agree in writing to exempt the domestic service employee from the requirements of subsections 1 and 2.