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Nevada Timing of Wages Paid to Temporarily Laid Off Employees Clarified

19 Jul


Update applicable to:

All employers with employees performing work in the state of Nevada

What happened?

Nevada has enacted Senate Bill 147 in an effort to clarify when employers must pay final wages to employees who are placed on “nonworking status.”

What are the details?

Under current Nevada law, when an employee is involuntarily terminated, they must be paid their unpaid wages immediately. SB 147 introduces a new provision that requires employers to pay wages immediately to employees placed on “nonworking status,” which refers to temporary layoffs where the employee remains employed and can be called back to work in the future. However, certain scenarios, such as suspensions pending investigations or disciplinary actions, being on-call for work, or taking a leave of absence, are not considered “nonworking status.”

If an employer fails to pay the wages of an employee on nonworking status within three days after they become due, the employee will continue to earn wages at the same rate from the day they were placed on nonworking status until paid, or for 30 days, whichever is less. It’s important to note that SB 147 does not mandate immediate payment of bonuses or profit-sharing arrangements.

For more information, please see the links below:

Official Bill Page

Bill (SB 147)

NRS 608.050

Article 1, Article 2

What do employers need to do?

Effective July 1, 2023, employers in Nevada who place an employee on “nonworking status” must pay out wages earned immediately.

Need help understanding how changes to employment laws will affect your business?

Learn more about how Vensure's Nevada PEO services can help you navigate complex employment laws and keep your business compliant.

This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.

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