Nevada: State Supreme Court Clarifies Wage and Hour Rules


All Employers with NV Employees


August 11, 2022



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In Martel v. HG Staffing, LLC, the Nevada Supreme Court upheld a grant of summary judgment in favor of the employer in a class action alleging violations of minimum wage and overtime laws. In this case, the employees alleged they were not paid wages for completing tasks like attending meetings or classes, getting into uniform, or reconciling cash amounts without pay. The ruling in favor of the employers addressed four issues: 1) statute of limitations for wage claims; 2) validity of collective bargaining agreements; 3) overtime exemptions under state law; and 4) extension of statute of limitations for underlying wage claims. Employers should take note of this ruling as it addresses several Nevada wage and hour statutes. 


Statute of limitations for wage claims. The former employees alleged violations under the statutes for pay for each hour worked, overtime, and final paychecks and requested their claims should fall under a three-year statute of limitations period. The Nevada Supreme Court disagreed and stated minimum wage claims under the Nevada Minimum Wage Amendment are subject to a two-year statute of limitations period which begins to accrue after the employee’s final shift. Therefore, the employees’ claims are barred under this statute of limitations. This parallels the requirement that employers retain employee wage records for two years. 


Validity of collective bargaining agreements. A collective bargaining agreement does not have to have a signature, date, or the names of both parties to be valid. The Nevada Supreme Court said that so long as the union and the employer manifested assent to the agreement it is valid. Evidence that grievances were filed and arbitrations were conducted under the collective bargaining agreement shows both parties agreed to the collective bargaining agreement as valid. 


Overtime exemptions under state law. NRS § 608.018(3)(e) provides an exemption from overtime for employees covered by collective bargaining agreements that otherwise provide for overtime. The employees in this case argued the collective bargaining agreement must have a premium overtime rate in order for the exemption to apply. The Nevada Supreme Court disagreed and found the collective bargaining agreement provided for overtime in a sufficiently different manner to qualify for the overtime exemption within the statute. 


Extension of statute of limitations for underlying wage claims. The Nevada Supreme Court also stated that the employees’ unpaid wage claims were also barred by the two-year statute of limitations. The employees argued that even though the complaint was filed two years and one day after their final shifts, they should still be able to recover penalties for wages which could be recovered. The Nevada Supreme Court disagreed.  


Action Items 

  1. Review procedures for retention of employee wage records. 
  2. Review procedures for payment of overtime and final paychecks. 
  3. Consult with legal counsel for any terminations involving a potential wage claim. 
  4. Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance. 


Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2022 ManagEase