Nevada to Eliminate Subminimum Wages

Nevada enacted legislation (Assembly Bill 259), which phases out the ability for employers to pay a subminimum wage to employees with disabilities in the state. The goal of the law is to eliminate the use of the subminimum wage in Nevada by Jan. 1, 2028.

The Details

As background, Nevada state law allows employers, after receiving a certificate from the state, to pay a subminimum wage to workers who have disabilities.

Requirements for Providers of Jobs and Day Training Services

As of Jan. 1, 2025, a provider of jobs and day training services (provider) is prohibited from entering into a contract or an arrangement that pays subminimum wages to employees with disabilities.

Additionally, on or before January 1 of each year, a provider that is authorized to pay less than the state minimum wage must submit to the Aging and Disability Services Division of the Department of Health and Human Services (the Division) their plan to:

• Transition individuals earning subminimum wages to earning at least the state minimum wage by Jan. 1, 2028; or
• Support covered workers in obtaining competitive integrated employment, supported employment or community activities related to the individual’s goals.
  
  

The plan must be:

• Informed by evidence-based practices and models for providing effective employment and align with any applicable federal laws and regulations; and
• Accompanied by a report that contains measurable benchmarks for each individual earning less than the state minimum wage under a valid certificate to show their progress toward the requirements for providers under the law.
  
  

Note: The Division may require a plan to be revised and resubmitted when the plan does not meet the requirements and goals under the law.

See the text of the law for further details.

Meeting Representatives

Under the law, an individual with an intellectual disability or a developmental disability who is earning less than the state minimum wage under a valid certificate may choose a person (such as their case manager, parent or legal guardian) to advocate on their behalf at any meeting concerning employment with their employer or a member of the staff of the provider of jobs and day training services.

See the text of the law for further details.

Next Steps

Nevada employers should watch for developments in phasing out the subminimum wage for employees with disabilities.