Nevada Governor Brian Sandoval recently vetoed SB 196, which would have required employers of 25 or more employees to provide paid sick leave to their full-time employees. The requirement would have been effective January 1, 2018.

SB 196 would have required a private employer who has 25 or more employees in Nevada and who has conducted business in the state for at least 12 consecutive months to provide full-time employees with paid sick leave, to be accrued at a rate of one hour per 40 hours worked. The accrued paid sick leave could have been used by an employee beginning on the first anniversary date of his or her employment.

Employers would have been allowed to (1) limit the use of the paid sick leave to 40 hours per year; and (2) set a minimum increment that an employee may use the accrued sick leave at any one time, not to exceed 2 hours. Employers would have been required to allow employees to carry over up to 80 hours of accrued paid sick leave to the following year.

A full-time employee would have been defined as one who works at least 1,600 hours for the employer during a 12-month period beginning on the date the employee is hired.

According to Governor Sandoval, " … the mandates of SB 196 come with a substantial cost to businesses, particularly small businesses. In addition, the decision to provide employee benefits is one reserved to a business owner who must respond to the demands of a competitive job market. SB 196 presents a substantial economic burden on small business, upsets competition for employees, and could hinder Nevada's business friendly reputation."

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