Nevada Employee Leave Laws: What Employers Need to Know

Have you heard about Nevada's new paid leave law? Back in June 2019, Governor Steve Sisolak signed Senate Bill 312 (SB 312), which requires many Nevada employers to offer their employees up to 40 hours of paid leave each year. This new legislation, which went into effect on January 1, 2020, brought significant changes for businesses in the state.

In this article, we'll break down the details of SB 312 and explain what it means for Nevada employers. We'll look at the main points of the law, such as who is eligible, how leave is accrued, and any restrictions on its use. We’ll also touch on possible exemptions and other federal and state employee leave laws.

Understanding Nevada's Paid Leave Requirements

SB 312 mandates that private employers in Nevada with 50 or more employees must provide at least 0.01923 hours of paid leave for every hour worked in a benefit year. For full-time employees working 40 hours a week, this adds up to about 40 hours of paid leave annually. This law covers all employees, including those who work part-time or are temporary, with a few exceptions.

The law's implementation on January 1, 2020, marked a big shift in employment practices in Nevada. Businesses had to quickly update their policies to meet the new standards. Because the law applies broadly, a variety of businesses—from retail shops to manufacturing facilities—must now offer paid leave benefits to their workers.

Employers have the option of allowing paid leave to accrue over time or providing all the paid leave hours at the start of each benefit year. With the accrual method, employees earn leave as they work, while frontloading gives employees their full leave allowance upfront. Additionally, employers can set a waiting period of up to 90 days before new employees can use their accrued leave.

Eligibility and Accrual of Paid Leave

Employee Eligibility

SB 312 applies to a wide range of employees in Nevada, but there are some exceptions. The law covers both full-time and part-time employees, as long as their employer has 50 or more workers. However, temporary, seasonal, and on-call employees are exempt from the paid leave requirements. Keep in mind that SB 312 doesn't provide specific definitions for these terms, so employers may need to seek guidance on how to classify their workforce.

It's important to note that the law applies to employees who work in Nevada, regardless of where their employer is based. So, even if your company is headquartered outside of Nevada, you'll still need to provide paid leave to your Nevada employees if you meet the 50-employee threshold.

Accrual Methods

Under SB 312, employees must accrue paid leave at a rate of at least 0.01923 hours for each hour worked. This means that an employee who works 40 hours per week will earn approximately 40 hours of paid leave over the course of a 52-week benefit year. Employers can choose to calculate leave accrual based on the actual hours worked by each employee or assume a 40-hour workweek for full-time employees.

As an alternative to the accrual method, employers have the option to frontload paid leave by providing the full amount of leave at the beginning of each benefit year. With this approach, employees have immediate access to their entire paid leave allotment, rather than accruing it over time. However, employers should be aware that frontloading leave may result in employees using more leave than they would have accrued under the standard method.

Regardless of the accrual method used, employers can cap the amount of paid leave an employee may accrue at 40 hours per benefit year. Employers can also limit the amount of unused leave that can be carried over from one year to the next, but this carryover cap cannot be less than 40 hours.

Using Paid Leave

Now that we've covered the basics of accrual and eligibility under SB 312, let's talk about how employees can actually use their paid leave. The law gives employees a good deal of flexibility in using their leave, but there are a few key points that employers should be aware of.

Employee Notice Requirements

When an employee needs to take paid leave, they must provide notice to their employer "as soon as practicable." While the law doesn't give a precise definition of "practicable," it's generally understood to mean as soon as reasonably possible under the circumstances. Employers should communicate their expectations around notice to employees and apply their policies consistently.

It's important to note that employers can set a minimum increment for paid leave use, but this increment cannot exceed 4 hours. For example, an employer could require that paid leave be used in 2-hour blocks, but they couldn't require full-day increments. This provision is designed to give employers some control over scheduling while still allowing employees to use their leave in a meaningful way.

Permissible Uses of Paid Leave

One of the most significant aspects of SB 312 is that it allows employees to use their paid leave for any reason. Unlike some other leave laws that are restricted to specific purposes like sick leave or family leave, Nevada's law gives employees broad discretion in how they use their time off. Whether an employee needs to care for a sick child, attend a school event, or simply take a mental health day, they can use their accrued paid leave.

Employers should also be aware that they cannot require employees to find a replacement worker as a condition of using their paid leave. This prohibition is in place to ensure that employees can use their leave when they need it without facing undue burdens. Employers will need to manage staffing and scheduling in a way that accommodates employee leave use.

Carryover, Caps, and Payout of Unused Leave

While SB 312 requires employers to provide paid leave, it also sets some parameters around accrual and carryover of unused hours. These provisions are designed to balance the needs of employees with the operational realities of running a business.

First, the law allows employers to cap the total amount of paid leave an employee can accrue in a single benefit year at 40 hours. This means that once an employee has earned 40 hours of leave, they won't accrue any additional time until the next benefit year begins. This cap helps prevent situations where employees accumulate large leave balances that could create challenges when they're used.

In addition to the annual accrual cap, SB 312 addresses what happens to unused leave at the end of a benefit year. Employers must allow employees to carry over at least 40 hours of accrued, unused paid leave from one year to the next. However, employers are not obligated to allow carryover of more than 40 hours.

It's worth noting that the accrual cap and carryover provisions work together. An employee who accrues 40 hours of paid leave in a benefit year but only uses 20 hours can carry over those remaining 20 hours to the next year. But because of the 40-hour cap, they will only be able to accrue an additional 20 hours in the new benefit year until they use some of their carried-over time.

Finally, SB 312 gives employers the option, but not the obligation, to pay out an employee's unused paid leave upon separation from employment. If an employer chooses to do so, they must compensate the employee for any unused leave at the employee's current rate of pay. However, if the employee is rehired within 90 days of separation, the employer must reinstate any previously accrued and unused paid leave, unless the separation was due to the employee voluntarily leaving the job.

As you develop your paid leave policies, it's important to consider how you'll handle accrual caps, carryover, and the payout of unused leave. You'll want to ensure that your policies are consistent with SB 312's requirements and that they're clearly communicated to employees. Proper management of these issues can help prevent misunderstandings and ensure smooth operations.

Recordkeeping and Reporting Obligations

In addition to providing paid leave, SB 312 also imposes certain recordkeeping and reporting requirements on Nevada employers. These obligations are designed to ensure compliance with the law and to give employees transparency into their leave balances.

First, employers must maintain records of the accrual and use of paid leave for each employee for at least one year. These records should include information such as the number of hours worked, the amount of leave accrued, and the dates and amounts of leave used. Employers must be prepared to provide these records to the Nevada Labor Commissioner upon request.

Maintaining accurate records is crucial for demonstrating compliance with SB 312. It can also help employers manage leave usage and prevent disputes with employees over leave balances. As you implement your paid leave policies, be sure to put systems in place for tracking and documenting leave accrual and use.

In addition to recordkeeping, SB 312 requires employers to provide employees with an accounting of their available paid leave hours on each payday. This accounting should show the amount of leave accrued, used, and remaining for the benefit year. Providing this information on a regular basis helps employees understand their leave balances and plan for time off.

There are a few different ways employers can provide this accounting. Some employers may choose to include leave balances on employee pay stubs. Others may use an online portal or mobile app that allows employees to view their leave information at any time. Whichever method you choose, be sure that it's reliable, accurate, and accessible to all employees.

Failure to comply with SB 312's recordkeeping and reporting requirements can result in penalties and enforcement action by the Nevada Labor Commissioner. Employers should take these obligations seriously and work with their HR and payroll teams to ensure consistent compliance.

As you navigate SB 312's requirements, it's important to remember that the law sets a minimum standard for paid leave in Nevada. Employers are free to provide more generous leave benefits if they choose. However, all Nevada employers with 50 or more employees must, at a minimum, comply with the accrual, usage, and reporting requirements set forth in the law.

Exemptions and Equivalent Leave Policies

While SB 312 applies to most employers in Nevada, there are a few notable exemptions. First, the law does not apply to employers with fewer than 50 employees. This exemption is designed to reduce the burden on small businesses that may have more limited resources.

It's important to note that the 50-employee threshold is based on the total number of employees employed by the company, not just those working in Nevada. So, if your company has 40 employees in Nevada but 60 employees total across multiple states, you would still be subject to SB 312's requirements.

In addition to the small business exemption, SB 312 also provides a temporary exemption for new employers. During the first two years of operation, new businesses are not required to provide paid leave under the law. This grace period is intended to give new companies time to establish themselves before taking on the additional cost and administrative burden of providing paid leave.

However, it's important to keep in mind that these exemptions are not automatic. Employers who believe they qualify for an exemption should carefully review the law's requirements and consult with legal counsel to ensure compliance.

Another important aspect of SB 312 is that it does not necessarily require employers to create a new paid leave policy from scratch. If an employer already provides paid leave that meets or exceeds the minimum requirements of the law, they may not need to make any changes.

To qualify as an equivalent leave policy under SB 312, the existing policy must provide at least 0.01923 hours of paid leave per hour of work performed. This is the same accrual rate required by the law. The policy must also allow employees to use their leave for the same broad range of purposes permitted under SB 312.

If an employer's existing policy meets these criteria, they can continue to administer it as they have been. However, they should still review the policy to ensure that it complies with SB 312's recordkeeping and reporting requirements.

It's also worth noting that providing an equivalent leave policy doesn't exempt an employer from the law's other requirements. Even if an employer's policy exceeds the minimum leave requirements, they must still comply with the law's provisions around usage, carryover, and payout of unused leave.

If you're unsure whether your existing policy meets the requirements of SB 312, it's a good idea to review it carefully and consider making any necessary changes. Working with HR professionals or legal counsel can help ensure that your policy is fully compliant.

As you navigate the exemptions and equivalent policy provisions of SB 312, remember that the law's primary goal is to ensure that Nevada employees have access to paid time off when they need it. By understanding and complying with the law's requirements, you can help support the health and well-being of your workforce by providing a compliant paid leave policy while avoiding costly penalties and legal risks.

Other Leave Laws in Nevada

While SB 312 is the most comprehensive form of leave law in Nevada, there are a few other federal and state leave laws that Nevada employers must remain compliant with:

FMLA in Nevada

The Family and Medical Leave Act (FMLA) is a federal law that applies across all states, including Nevada. Eligible employees can take up to 12 weeks of unpaid leave within a 12-month period for specific family and medical reasons, such as:

• The birth or adoption of a child.

• Caring for a spouse, child, or parent with a serious health condition.

• Addressing qualifying exigencies related to a family member’s military deployment.

In Nevada, employers are required to comply with FMLA if they have 50 or more employees within a 75-mile radius. Employees must meet eligibility criteria, including:

• Working for the employer for at least 12 months.

• Completing at least 1,250 hours of work during the 12 months prior to leave.

Nevada also provides additional protections through its Pregnant Workers’ Fairness Act, ensuring reasonable accommodations for pregnancy-related conditions.

Jury Duty Leave in Nevada

Nevada law protects employees summoned for jury duty. Key provisions include:

• Employers cannot terminate or penalize employees for serving on a jury.

• Employees must provide reasonable notice of their jury duty obligations.

• Employers are not required to pay employees during jury duty, though some choose to do so.

When an employee is summoned to jury duty, they should provide a copy of their jury duty summons to their employer as soon as possible.

Military Leave Requirements in Nevada

Under the federal Uniformed Services Employment and Reemployment Rights Act (USERRA), Nevada employers must grant leave to employees called to active duty or participating in military training. Key provisions include:

• Military leave must be unpaid, but employees can use accrued PTO or vacation days if they wish.

• Employers must restore employees to their previous position (or an equivalent one) upon return from military service.

• Employees are protected from discrimination or retaliation based on their past, present, or future military status.

Final Thoughts

Employers in Nevada must remain compliant with a combination of federal and state laws when it comes to leave policies. Whether addressing FMLA, bereavement, jury duty, or military leave, staying informed and proactive helps businesses foster a fair, compliant workplace. Establishing clear policies and communicating them effectively to employees is essential for success.

As you navigate the complexities of Nevada's paid leave law, remember that compliance is an ongoing process. We're here to help you stay informed and minimize risk while creating a more positive work environment for your employees. If you have any questions or need assistance with your HR and compliance needs, book a demo with us today.