5 Employment Laws that Differ Between Nevada and California

Employment laws can be tricky for employers to navigate. There’s not only the federal laws and regulations to contend with, but also the specific employment laws that pertain to the one’s particular state of operations. For businesses that operate across state lines, navigating employment laws can be even trickier, especially if the two states are as distinct from one another as Nevada and California.

Why Do Employers Need to Understand Differing State Employment Laws?

Despite being neighboring states, Nevada and California have significant differences in employment laws and regulations. Whether your business operates in both states or you’re considering relocating, it’s important to understand the distinctions to avoid compliance issues like minimum wage differences, overtime rules, discrimination laws, worker’s comp, and so much more.

Read on for a deeper dive on five areas where Nevada and California employment law differs:

Minimum Wage

While both Nevada and California have minimum wage rates that are higher than what is required under federal law, Nevada is more favorable for employers in a couple of aspects.

First, Nevada’s minimum wage (as of July 1, 2024) for all non-exempt employees is $12.00 per hour, compared to California’s, which is $16.00 per hour as of January 1, 2024. Additionally, many cities in California have minimum wages higher than the state minimum wage. Nevada has one minimum wage regardless of where the employee works within the state.

Second, California has a minimum salary threshold for its salary exempt employees, which is significantly higher than what is required by the Fair Labor Standards Act (FLSA). Nevada doesn’t have a state minimum salary threshold. Nevada follows federal law.

Leaves of Absence

Another area where Nevada and California differ is in what leaves are required to be provided to employees. As one might suspect, California has more leave obligations.

Currently, Nevada law requires employers provide the following types of leave: paid time off (which can be used for vacation time and sick leave and is required for businesses with 50+ employees), voting leave, leave for victims of domestic violence & sexual assault, school activities leave (50+ employees), jury duty/witness leave, kin care leave (if employer provides sick leave). Most of these leave requirements are unpaid.

In comparison, California labor laws requires the following: paid sick leave, pregnancy disability leave (5+ employees), bereavement leave (5+ employees), California Family Rights Act (CFRA) leave (California’s equivalent to FMLA for employers with 5+ employees), crime victims’ leave, organ and bone marrow donor leave (5+ employees), and more.

Overtime and Premium Pay

Both California and Nevada provide for daily overtime when employees’ hours of work equal more than 8 hours in a workday. However, how each state defines “workday” results in daily overtime being applied differently. Nevada’s daily overtime is based on the 24-hour clock, which starts whenever the employee starts work and can “reset” whenever there is a break between workdays. California’s daily overtime for an employee work period is based on a consistent 24-hour timeframe.

In addition to overtime after 8 hours in a day (daily overtime) and overtime after 40 work hours in a week, California also requires overtime pay for the first 8 hours on the seventh consecutive workday. California also requires double time (2 times the regular rate of pay for each additional hour of work) in certain circumstances.

Required Training

Currently, most private employers in Nevada do not have any mandatory training requirements. However, NAE encourages Nevada employers to conduct regular training on workplace harassment, reasonable suspicion, supervisory training, etc. to inform employees regarding their obligations and protect the company.

California state law mandates most employers provide harassment prevention training for supervisors and employees. Supervisors must receive at least two hours of sexual harassment training and employees must receive at least one hour of sexual harassment training once every two years. Additionally, certain industries have additional training requirements.

Final Pay

When it comes to payment of final wages, both California and Nevada require immediate payment for employees who are discharged. However, Nevada provides more flexibility than does California.

Nevada employers must provide final pay to an employee who is discharged no later than 3 days (or 72 hours) following the date of termination to avoid penalties. That timeframe is measured as business days, not calendar days. California, on the other hand, requires final payment be made on the last day of work when the words “you’re terminated” are spoken.

For employees who resign, Nevada again provides employers with more flexibility. Nevada employers have seven days, or the next scheduled pay day, whichever occurs first, to make payment of final wages. California requires payment on the last day of work or within 72 hours of getting notice depending on how much notice the employee provides when quitting.

Want to Learn More About Navigating the Differences Between Employment Laws in Nevada and California?

<To gain a comprehensive understanding of the distinctions mentioned in this article and how they may affect your business, we invite you to attend the California-Nevada Employers Summit in Lake Tahoe on October 4^th. Your team of HR and legal professionals will delve deeper into these topics and more to actionable insights to help you ensure compliance and optimize your workforce strategies in both states.

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