Tag Archives: Nevada Labor Commissioner

Fluctuating Work Week Method Of Compensation Is Permissible For Certain Nevada Employees

In a recently published Advisory Opinion, the Nevada Labor Commissioner has opined that Nevada employers may use the fluctuating workweek method to compensate certain types of nonexempt Nevada employees.

What is the fluctuating workweek method?

The fluctuating workweek method is a accept method of compensation under the Fair Labor Standards Act for nonexempt employees who are paid a fixed salary for all hours worked. Under this method, the employer and employee have come to an understanding that the employee will receive the fixed salary as straight time pay for whatever hours he is called upon to work in a workweek – no matter how few or how many.

If the employee works over 40 hours in a workweek, the employer then pays the employee overtime based on one-half the employee’s regular rate of pay. The regular rate of pay is calculated by dividing the employee’s weekly salary by the total hours the employee worked that week. That number is then divided in half to determine the overtime rate – because the employer and employee previously agreed that the salary compensated the employee for all straight time hours worked.

What did the Nevada Labor Commissioner opine?

The Labor Commissioner found that the fluctuating workweek method of compensation was permissible for fixed salary nonexempt employees. In addition, he also found that fluctuating workweek method of compensation is also permissible where a fixed salary employee is also paid commissions and bonuses provided that those commissioner and/or bonuses are included in the weekly amount of pay when determining the employee’s regular rate of pay.

Take home for employers

While the fluctuating workweek method is a accept method of compensation in Nevada, it is recommended that Nevada employers consult with an HR Professional or legal counsel before using this method of payment with their employees.

Good News for Nevada Employers — No Increased Minimum Wage for 2017

The Nevada Labor Commissioner recently released its annual minimum wage and daily overtime bulletins — providing good news for all Nevada employers.  There will be no increase to Nevada’s minimum wage in July of 2017 and Nevada’s daily overtime rules remain unchanged.

What does this mean for Nevada employers?

Minimum Wage

For Nevada employers who make “qualified health benefits” available to their employees, minimum wage remains at $7.25 per hour.

Minimum wage for all other employees (i.e. those employees to whom “qualified health benefits” have not been made available) is $8.25.

Daily Overtime

For Nevada employers who make “qualified health benefits” available to their employees, daily overtime must be at 1 1/2 times the employee’s regular rate of pay if the employee is paid less than $10.875 per hour.

All other employees must be paid daily overtime if they are paid less than $12.375 per hour.

In both cases, daily overtime is paid at the employee’s regular rate of pay when the employee works more than 8 hours in a workday.