Effective January 1st, 2020 Nevada law (Senate Bill 312-SB312) requires covered employers to provide earned paid leave, which employees may use for any reason, including those for which sick leave is typically used. Below is some important information on the upcoming Law and how to set up a compliant paid time off policy inside OnPay. If you would like additional information on SB312 and how it may affect your company, please review Nevada's website by clicking here.
How much earned paid sick time must an employer offer an employee?
Nevada Law requires "covered employers" to provide 0.01923 hours of paid leave per work hour. Employee’s paid leave may be accrued over the course of the year or may be front-loaded. The amount of leave used in a year may be limited to 40 hours; leave carryover may also be limited to 40 hours per year.
Important Nevada Compliance Details
- A “covered employer” means a private employer with 50 or more employees in private employment in the state of Nevada. New employers are not required to comply with the law for the first 2 years of operation.
Employers who already provide paid time off pursuant to a contract, policy, collective bargaining agreement, or other agreement are not required to provide additional rights or leave under this law as long as the leave provided meets the minimum accrual rate (0.01923 hours of paid leave per work hour).
Temporary, seasonal, and on-call employees are not entitled to leave under the law.
Employees are eligible to use leave beginning on the 90th calendar day of employment.
Employees may use available leave for any reason; more specifically, employees may use leave without providing a reason for doing so.
Employers may, but are not required to, pay out unused leave upon separation from employment. However, if an employee is rehired within 90 days of involuntary separation, previously unused paid leave must be reinstated.
How to set up the Policy in OnPay
Calculation Information: The three levels shown above are identical because the employee accrual does not increase based on their length of service. The per-hour accrual rate of 0.01923 is the minimum accrual rate required by the state. The bottom number of tiers 1, 2, and 3 is the balance cap and it will keep the employee from having a balance higher than 40 hours at any given time. Please keep in mind the balance cap will not stop the employee from accruing or using more than 40 hours in a given year. The amount used and accrued by the employee should be monitored by the employer.