A new law, SB 147, went into effect on July 1, 2023, for Nevada employers placing employees on a “nonworking status.” It requires these employers to immediately pay all wages owed. According to state law, “nonworking status” includes when an employee is laid off on a temporary basis but remains an employee who may be called back to work in the future. The law does not include employees placed on suspension pending investigation related to employment or pursuant to disciplinary actions. Additionally, non-working employees do not include those on-call for available work or on leaves of absence.

If you’re an employer operating in Nevada, you must review the final pay protocol to ensure that all laid-off or “nonworking” employees are immediately paid all owed wages. State law also requires that employees who are terminated involuntarily receive owed wages immediately. According to NRS 608.020, “whenever an employer discharges an employee, the wages and compensation earned and unpaid at the time of such discharge shall become due and payable immediately.”

Failing to pay the owed wages to an employee on “nonworking status” within three days of the wages being due can result in a significant fine. According to the provisions outlined in SB 147, the employee will continue to earn wages at their agreed-upon rate from the date on which they were placed on “nonworking” status until they receive payment, or for 30 days (whichever is less). However, SB 147 does not require the immediate payment of any profit-sharing arrangements or bonuses to nonworking employees.

Review the full overview of SB 147 here.

This article is informational and does not constitute legal or financial advice. Consult with an employment lawyer or accountant for additional clarification on how these changes impact your company.