As we previously reported, legislation (SB 312) enacted earlier this year requires Nevada employers of 50 or more employees to provide paid leave to their employees. The bill provides that the law is effective January 1, 2020, or upon the state’s performing any other preparatory administrative tasks necessary to carry out the provisions of the Act.

The Nevada Labor Commission originally stated a July 1, 2020 effective date but has now accelerated the effective date to January 1, 2020.(Advisory opinion, Nevada Labor Commission, 10-4-2019; EY Payroll Newsflash Vol. 20, 128, 8-28-2019.)

Under the law, eligible employees do not have to provide employers with the reason for taking the paid leave, giving the employee the ability to use the leave for reasons other than their own personal illness.

Employers in their first two years of operation are not required to comply with the paid leave law.

Paid sick leave provisions

Effective January 1, 2020, employers with 50 or more employees must provide a minimum of 40 hours of paid leave a year to their employees, including those who are part-time, by allowing them to accrue at least 0.01923 hours of paid leave for each hour worked. Employers may choose to “front-load” 40 hours of paid leave at the beginning of each benefit year. Employers are not required to provide paid leave to temporary, seasonal or on-call employees.

Employers already providing leave that matches or exceeds the 0.01923 hours of paid leave per hour of work performed pursuant to a contract, policy, collective bargaining agreement or other agreement are explicitly exempt from the other requirements of Senate Bill 312.

Earned paid leave that has not been used can be carried over to the following year, provided that the employer may limit the amount carried over to 40 hours. An employer may delay new employees’ ability to use earned paid leave until they have worked for the employer for 90 days.

The employer must pay employees who are on paid leave on regularly scheduled paydays in an amount equal to what the employee would have earned if he or she had worked the scheduled work time. The employer must provide an accounting of the hours of paid leave available for use each payday.

When there is a separation from employment and the employee is rehired by the same employer within 90 days of separation, and the reason for termination was not a voluntary quit, previously accrued unused earned leave must be reinstated.

Employers may not: (1) deny an employee the right to use their accrued paid leave; (2) require as a condition of using earned paid leave that the employee find a replacement worker; or (3) retaliate against employees for using their earned paid leave.

The Nevada Labor Commission has published a bulletin on its website that employers are required to post in a conspicuous location in each workplace maintained by the employer. The Rules to be Observed by Employers poster has also been updated. See the agency’s October 2019 advisory opinion for other methods of employee notification.

The Labor Commissioner may impose an administrative penalty of not more than $5,000 for each violation of the paid leave law, in addition to other remedies or penalties as authorized by law.

See the agency’s October 2019 advisory opinion for frequently asked questions about the paid sick leave requirements.

Ernst and Young LLP insights

Nevada joins Maine (LD 369, Chapter 156, effective 1-1-2021) in enacting a paid leave law that prohibits employers from requiring that paid leave be used for the employee’s own illness.

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EY Payroll News Flash