State minimum wage, daily overtime threshold to change

Nevada's minimum wage will go up July 1.

Labor Commissioner Michael Tanchek said last week the minimum wage for employees who receive qualified health benefits from their employers will increase to $7.25 an hour from $6.55 per hour, and the minimum wage for employees who do not receive health benefits will increase to $8.25 an hour from $7.55 per hour.

An annual adjustment to of the minimum wage in Nevada is required by a 2006 amendment to the Nevada Constitution. The adjustment is based on increases in the federal minimum wage over $5.15 per hour, or by the cumulative increase in the cost of living.

"The adjustment for this year captures the third and final installment of the $2.10 increase in the federal minimum wage that went into effect in 2007," said Tanchek.

Nevada employers will also see an increase in the threshold for daily overtime. Nevada is one of six states with a daily overtime requirement in addition to the requirement to pay overtime for more than 40 hours in a week.

"What sets Nevada apart from the other states is that our daily overtime requirement is tied to the minimum wage," Tanchek said, "As the minimum wage goes up, so does the daily overtime requirement. As a result, some employers who are not currently paying daily overtime will have to do so once the new threshold rates go into effect on July first."

Beginning July 1, workers who receive qualified health benefits from their employers and earn less than $10.875 per hour and employees earning less than $12.375 per hour who do not receive qualified health benefits must be paid overtime if they work more than eight hours in a day.

These changes don't affect employees who are exempt from overtime under state law.