Nevada has enacted legislation (Senate Bill 312) that will require private-sector employers with 50 or more employees to provide paid leave to each employee effective January 1, 2020. The law requires 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 January 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 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 of 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 January 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 his or her 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 his or her employer. An employee should give notice to his or her employer of his or her 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?
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 January 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: https://www.leg.state.nv.us/App/NELIS/REL/80th2019/Bill/6553/Text