Hiring New Employees in Nevada: Legal Guidelines for Employers

Hiring employees in Nevada requires compliance with both federal and state-specific employment laws, including minimum wage requirements, mandatory break provisions, and specific background check regulations. Nevada employers must navigate these legal requirements while also addressing the state's unique employment landscape, which includes strong worker protections and industry-specific regulations.

Failure to comply with Nevada's employment laws can result in significant penalties, including fines, back pay requirements, and potential lawsuits from employees. Employers should establish proper hiring procedures that address all state requirements before bringing on new staff.

Key Considerations

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Startup Founder

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Small Business Owner

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Relevant Laws

Nevada Equal Pay Act

Prohibits employers from discriminating between employees on the basis of sex by paying lower wages to employees of one sex than to those of the opposite sex for equal work. Relevant when establishing compensation for new hires to ensure pay equity.

Nevada Right to Work Law

Establishes that employment cannot be denied or abridged based on membership or non-membership in a labor organization. Important when hiring as you cannot require union membership as a condition of employment.

Nevada Minimum Wage Law

Sets minimum wage requirements for Nevada employers. As of 2023, Nevada's minimum wage is $12.00 per hour for all employees. This must be considered when determining compensation for new hires.

Nevada E-Verify Requirements

While Nevada does not mandate E-Verify use for private employers, all employers must comply with federal I-9 requirements to verify employment eligibility. Public works contractors and state agencies are required to use E-Verify.

Nevada Ban-the-Box Law

Prohibits employers from inquiring about criminal history on initial job applications. Background checks can only be conducted after the initial interview or conditional job offer, allowing applicants to be considered based on qualifications first.

Nevada Pregnant Workers' Fairness Act

Requires employers with 15 or more employees to provide reasonable accommodations to female employees and applicants for conditions related to pregnancy, childbirth, or related medical conditions. This affects hiring practices and interview questions.

Nevada Modified Business Tax

Employers must pay this payroll tax on wages paid to employees after deductions for health insurance. This tax must be considered when budgeting for a new hire's total employment cost.

Nevada Unemployment Insurance Requirements

Employers must register with the Nevada Department of Employment, Training and Rehabilitation and pay unemployment insurance taxes for each employee. This is a mandatory consideration when hiring new employees.

Regional Variances

Major Cities in Nevada

Las Vegas has additional requirements for business licenses for employers. Businesses must obtain both a Clark County and City of Las Vegas business license if operating within city limits. Las Vegas also has a higher minimum wage for employers with health benefits ($9.50) versus those without health benefits ($10.50).

Reno requires employers to register with the city for business licensing. The city has specific zoning requirements that may affect home-based businesses hiring employees. Reno also enforces strict occupational safety regulations for businesses in the downtown district.

Henderson has its own business licensing requirements separate from Clark County. Employers must complete a Henderson-specific new hire reporting process in addition to state requirements. The city also offers tax incentives for businesses hiring local residents.

Rural Counties in Nevada

Elko County has simplified business registration processes for small employers. Mining industry employers face additional safety training and certification requirements for new hires. The county offers tax incentives for businesses that create jobs in designated rural enterprise zones.

Washoe County has different business licensing requirements than Reno city. Employers in unincorporated areas must comply with county-specific zoning regulations. The county also has specific requirements for businesses hiring in certain industries like agriculture and tourism.

Special Economic Zones

Businesses operating in the Lake Tahoe Basin must comply with additional environmental regulations when hiring employees for certain positions. Special permits may be required for businesses with employees working in environmentally sensitive areas.

The Tahoe-Reno Industrial Center offers streamlined hiring processes and tax incentives for large employers. Companies in this zone benefit from expedited permitting and may have different reporting requirements for new hires compared to other Nevada jurisdictions.

Suggested Compliance Checklist

Prepare job description and posting

1 days after starting

Create a clear job description that outlines the position's responsibilities, required qualifications, and compensation. Ensure the job posting complies with Nevada's anti-discrimination laws and doesn't include any language that could be interpreted as discriminatory based on protected characteristics.

Create Employment Application Form

1 days after starting

Develop an application form that collects necessary information from candidates while complying with Nevada employment laws. Avoid questions about age, race, religion, disability, or other protected characteristics. Include authorization for reference checks and verification of employment history.

Document: Employment Application Form

Conduct interviews and select candidate

14 days after starting

Interview qualified candidates and select the best fit for the position. Ensure all interview questions comply with Nevada employment laws and avoid questions about protected characteristics. Document the selection process and reasons for hiring decisions to demonstrate non-discriminatory practices.

Prepare Employment Offer Letter

15 days after starting

Draft an offer letter that includes the position title, start date, compensation, benefits, and any contingencies (such as background checks or drug testing). In Nevada, clearly state if the employment is at-will, meaning either party can terminate the relationship at any time with or without cause.

Document: Employment Offer Letter

Draft Employment Contract (if applicable)

15 days after starting

If offering a contract rather than at-will employment, prepare a detailed employment contract. Include terms of employment, compensation, benefits, termination conditions, and any restrictive covenants. Nevada law will enforce reasonable non-compete agreements, but they must be narrowly tailored in scope, geography, and duration.

Document: Employment Contract

Prepare Non-Disclosure Agreement

15 days after starting

Create a non-disclosure agreement to protect your company's confidential information and trade secrets. Under Nevada law, NDAs must be reasonable in scope and duration to be enforceable. Clearly define what constitutes confidential information.

Document: Non-Disclosure Agreement

Prepare Non-Compete Agreement (if applicable)

15 days after starting

If necessary for your business, draft a non-compete agreement. In Nevada, non-compete agreements must be reasonable in geographic scope, time duration, and the activities restricted. They must protect a legitimate business interest and not impose undue hardship on the employee.

Document: Non-Compete Agreement

Prepare Background Check Authorization Form

15 days after starting

Create a form that obtains the candidate's consent for background checks. Under the Fair Credit Reporting Act and Nevada law, you must get written authorization before conducting background checks. The form should be clear about what information will be checked and how it will be used.

Document: Background Check Authorization Form

Conduct background checks

20 days after starting

After receiving signed authorization, conduct background checks in compliance with federal and Nevada laws. Nevada follows federal guidelines on background checks, but be aware that certain criminal history inquiries may be limited. Wait until after a conditional offer of employment to conduct criminal background checks.

Complete Form I-9 Employment Eligibility Verification

23 days after starting

Federal law requires all employers to verify employment eligibility using Form I-9. The employee must complete Section 1 on their first day of work, and you must complete Section 2 within 3 business days of the start date. Examine original documents that establish identity and employment authorization.

Document: Form I-9 Employment Eligibility Verification

Complete Form W-4 Employee's Withholding Certificate

23 days after starting

Have the employee complete a W-4 form to determine federal income tax withholding. This is required by the IRS for all new employees. Keep the completed form in the employee's file.

Document: Form W-4 Employee's Withholding Certificate

Complete Nevada State Tax Withholding Form

23 days after starting

Nevada does not have a state income tax, so no state withholding form is required. However, you should document this in your onboarding process for compliance purposes.

Document: State Tax Withholding Form

Submit New Hire Reporting Form

25 days after starting

Nevada law requires employers to report all newly hired employees to the Nevada New Hire Reporting Center within 20 days of hire. This can be done online through the Nevada Department of Employment, Training and Rehabilitation website. Failure to report can result in penalties.

Document: New Hire Reporting Form

Register for Nevada Unemployment Insurance

25 days after starting

If you haven't already, register with the Nevada Department of Employment, Training and Rehabilitation for unemployment insurance. All employers in Nevada must contribute to unemployment insurance for their employees.

Obtain Workers' Compensation Insurance

25 days after starting

Nevada law requires all employers to provide workers' compensation insurance coverage for employees. This can be obtained through a private insurance carrier, self-insurance (if qualified), or the state insurance pool. Failure to provide coverage is a criminal offense in Nevada.

Prepare Direct Deposit Authorization Form

25 days after starting

Create a form for employees to authorize direct deposit of their paychecks. In Nevada, employers cannot require direct deposit, but can offer it as an option. The form should include bank account and routing information.

Document: Direct Deposit Authorization Form

Prepare Emergency Contact Information Form

25 days after starting

Create a form to collect emergency contact information from the new employee. While not legally required, this is a best practice for workplace safety and emergency preparedness.

Document: Emergency Contact Information Form

Prepare Benefits Enrollment Forms

25 days after starting

If offering benefits such as health insurance, retirement plans, or other voluntary benefits, prepare the necessary enrollment forms. Under Nevada law, employers must provide clear information about any benefits offered and the enrollment process.

Document: Benefits Enrollment Forms

Update or create Employee Handbook

25 days after starting

Ensure your employee handbook is up-to-date with all Nevada-specific employment laws and company policies. Include policies on paid leave, meal and rest breaks, overtime, workplace safety, anti-discrimination, and harassment. Nevada requires employers to provide written notification of certain policies, which can be included in the handbook.

Document: Employee Handbook

Display required workplace posters

25 days after starting

Nevada employers must display certain posters in the workplace, including those related to minimum wage, equal employment opportunity, safety and health protection, and unemployment insurance. These must be posted in a conspicuous location where employees can easily see them.

Provide Nevada Pregnant Workers' Fairness Act notice

25 days after starting

Nevada law requires employers with 15 or more employees to provide a written or electronic notice to new employees about the Nevada Pregnant Workers' Fairness Act, which provides protections and reasonable accommodations for pregnant employees.

Conduct new employee orientation

30 days after starting

Schedule and conduct an orientation for the new employee to review company policies, procedures, and expectations. Cover safety protocols, emergency procedures, and any industry-specific regulations. Have the employee sign acknowledgments of receipt for all policies and handbooks.

Set up payroll and ensure compliance with wage laws

30 days after starting

Add the employee to your payroll system. Ensure compliance with Nevada wage and hour laws, including minimum wage requirements ($10.50/hour without health benefits, $9.50/hour with health benefits as of 2023), overtime rules, and payday requirements. Nevada requires employers to pay wages at least semi-monthly.

Document retention and organization

30 days after starting

Organize all employment documents in a secure file. Federal and Nevada laws require certain records to be kept for specific periods. For example, I-9 forms must be kept for 3 years after hire or 1 year after termination, whichever is later. Payroll records must be kept for at least 3 years.

Frequently Asked Questions

As of 2023, Nevada has a two-tier minimum wage system. If the employer offers qualified health benefits, the minimum wage is $10.25 per hour. If the employer does not offer health benefits, the minimum wage is $11.25 per hour. These rates are scheduled to increase annually until 2024. Always check the Nevada Labor Commissioner's website for the most current rates.

Yes, Nevada is an at-will employment state. This means that either the employer or employee can terminate the employment relationship at any time, with or without cause, and with or without notice. However, employers cannot terminate employees for illegal reasons such as discrimination, retaliation for protected activities, or in violation of public policy.

In Nevada, employers must have new employees complete: (1) Federal I-9 Form to verify employment eligibility, (2) Federal W-4 Form for tax withholding, (3) Nevada State Tax Withholding Form, (4) New Hire Reporting Form (must be submitted to the state within 20 days of hire), and (5) provide the required workplace notices and posters. You may also need to provide information about Nevada's workers' compensation program.

Yes, under Nevada law (SB 312), employers with 50 or more employees must provide paid sick leave to all employees. Employees accrue 0.01923 hours of paid leave for each hour worked, which equals approximately 40 hours of paid leave per year for full-time employees. Employees may use paid leave without providing a reason, and employers cannot require documentation for the use of paid leave unless the leave is used for three consecutive days.

Non-compete agreements are enforceable in Nevada, but with significant limitations. Under Nevada law (NRS 613.195), non-compete agreements cannot prohibit a former employee from providing services to a former customer if the employee did not solicit the customer, the customer voluntarily chose to seek services from the employee, and the employee is otherwise complying with the non-compete agreement. Additionally, courts will only enforce non-compete agreements that are reasonable in scope, geographical area, and time.

In Nevada, employers must pay overtime at 1.5 times the employee's regular rate of pay for hours worked over 40 in a workweek. Additionally, Nevada has daily overtime requirements: employees who earn less than 1.5 times the minimum wage and work more than 8 hours in a 24-hour period must receive overtime pay, unless they agree to a 4-day, 10-hour per day workweek. Certain employees are exempt from overtime requirements under state and federal law.

Yes, Nevada requires employers to provide meal and rest breaks. Employees must receive a 30-minute unpaid meal break if they work a continuous period of 8 hours. Additionally, employees are entitled to a paid 10-minute rest break for each 4-hour period of work (or major fraction thereof). Different rules may apply to certain industries or through collective bargaining agreements.

Nevada follows the federal Fair Credit Reporting Act (FCRA) for employment background checks. Employers must obtain written consent before conducting a background check and provide specific notices if taking adverse action based on the results. Additionally, Nevada has 'ban-the-box' legislation for public employers, prohibiting them from asking about criminal history on initial job applications. Private employers should be aware that certain industries (like gaming, healthcare, and childcare) have specific background check requirements under Nevada law.

In Nevada, if an employee is discharged (fired), the employer must pay all wages due within 3 calendar days of termination. If an employee quits or resigns, the employer must pay all wages due by the next regularly scheduled payday or within 7 days, whichever is earlier. Failure to pay final wages on time can result in penalties, including continuing to pay the employee's daily wage for up to 30 days.

Yes, the Nevada Equal Rights Commission (NERC) enforces state anti-discrimination laws. Nevada prohibits employment discrimination based on race, color, national origin, sex (including pregnancy), age, disability, sexual orientation, gender identity or expression, and genetic information. Nevada law applies to employers with 15 or more employees, and in some cases provides broader protections than federal law. Nevada also has specific protections for lawful use of marijuana outside of work hours and prohibits discrimination based on domestic violence victim status.

Hiring New Employees in Nevada: Legal Guidelines for Employers | DocDraft