Nevada enacts paid leave requirements

11/07/19

Author: ADP Admin/Friday, November 1, 2019/Categories: Compliance Corner

Nevada has enacted legislation, Senate Bill (SB) 312, that will require private sector employers with 50 or more employees to provide paid leave to each employee effective Jan. 1, 2020. The law requires that paid leave be made available to employees to be used for any reason.

ADP^® recommends that all clients with employees in Nevada review these new requirements and your current paid leave policies to ensure your company complies beginning Jan. 1, 2020.

Effective date: Jan. 1, 2020

Covered employers
With limited exceptions, private employers who have 50 or more employees in Nevada. The law does not apply to employers: with fewer than 50 employees in Nevada or that offer all scheduled employees, under a contract, policy, collective bargaining agreement or any other agreement, paid time off at at least the same accrual rate as provided by this legislation. The law also exempts employers from the requirements during its first two years of operation.

Covered employees
With limited exceptions, all employees are covered. There is no exception for part-time employees. SB 312 exempts temporary, seasonal and on-call employees from paid leave benefits. However, the bill offers no definitions for these employee types.

Pay during leave
Employers must pay an employee for the paid leave available for use by that employee at the rate of pay at which the employee is compensated at the time such leave is taken. The paid leave used by the employee must be paid on the same payday as the hours are normally paid. For additional details, please review SB 312.

Accrual, use and carryover
Beginning on Jan. 1, 2020, paid leave accrues at a rate of 0.01923 hours for each hour of work performed by an employee.

As an alternative to using an accrual method, employers can frontload the hours that they expect employees to accrue throughout the benefit year on the first day of the benefit year.

An employer shall allow an employee to use paid leave beginning on the 90th calendar day of their employment.

An employer may limit the amount of paid leave an employee uses to 40 hours per benefit year.

Employers may limit the total number of hours of paid leave that the employee is entitled to carry over to a maximum of 40 hours per benefit year.

Employers may set a minimum increment, not to exceed 4 hours, that an employee may use at any one time.

An employee may use paid leave available without providing a reason to their employer. An employee should give notice to their employer of their intent to use available paid leave as soon as practicable.

Notification
On each payday, an employer shall provide to each employee an accounting of the hours of paid leave available for use by the employee. An employer may use the system that the employer uses to pay its employees to provide this information to the employee.

Records
Employers must maintain records of the accrual and use of paid leave for each employee for at least one year, which must be made available to the Labor Commissioner upon request.

What do you need to do?
Review the requirements

Employers with employees in Nevada should review their policies to ensure compliance with the state’s new Paid Leave law prior to the effective date of Jan. 1, 2020. Your legal counsel can advise you as to whether your company’s existing policies may meet these requirements.
For an overview of SB 312, please click here.

If you need any assistance, please contact your ADP service representative.

Latest Compliance News

Nevada enacts paid leave requirements