We have seen an uptick in legislation changes across the country regarding sick leave, family leave, and paid time off.  Unlike some federal and state leave laws limited to family and sick leave, employees may use paid leave under Nevada’s new law for any reason and do not need to provide a reason for its use to their employer.  On June 13, 2019, Nevada Governor Steve Sisolak signed SB 312 into law to require Nevada employers to provide paid leave to workers.

What is the Paid Leave Law?

 

Nevada employers with at least 50 employees must provide employees with the ability to accrue and use up to 40 hours of paid time off annually.  Employers must provide employees with at least 0.01923 hours of paid leave for each hour worked. The time may be used after employees have been employed for 90 days and they have notified their employers. Employees are not required to provide a reason for using the leave.  Accrued but unused paid leave shall carry over to the following year but is limited to 40 hours.  Employees must be compensated at the same rate the employee intended to work on the day leave is taken, compensation for lost tips is not required.  Employers must provide employees a written notice each payday of the amount of accrued, used and available paid leave.

What is the rollout timing?

 

Nevada PL eligible employees begin to accrue paid leave hours beginning January 1, 2020

 

20 Employee Flow Chart

What are the penalties if not followed?

 

Nevada PL—NRS §608.195:

An employer can be fined up to $5,000 for each violation of the statute and may be found guilty of a misdemeanor.  For an employer with 25 employees the maximum fine assessed for a violation of the statute would be $125,000 ($5000 per employee).  This of course would be the maximum amount assessed and more than likely for a willful act after numerous other violations.

Below is a chart that estimates penalties for an employer with 25 employees for each violation of statute starting at $1000 per violation, which is 20% of the maximum penalty, the first time an employer is penalized and increases by $1000 for each subsequent violation.

 

The penalties in Nevada are astronomical, therefore, non-compliance with the law is a very risky endeavor.

How can RSI assist?

 

RSI’s earned sick and safe time/paid leave tracking system will calculate and report earned sick and safe time for Duluth, MN, which includes providing employees, on each pay stub, the amount of accrued leave for the pay period and the year-to-date balance of accrued, used, and available leave hours. There is a store level report that displays each employee’s year-to-date balance of accrued, used, and available leave hours.  If your company has a more generous leave plan than the city/state mandated plan, RSI has the ability to set higher levels in order to accommodate a more generous plan.  If your company is currently stuck in a manual tracking system of earned sick and safe time/paid leave, RSI can import the current balances by employee and take over the process of calculating and reporting earned sick and safe time/paid leave on the first check processed through RSI’s web based payroll system.

 

 

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