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- 83rd Session (2025)
Senate Bill No. 198–Senator Daly
CHAPTER..........
AN ACT relating to employment; revising provisions governing the
payment of wages and compensation to an employee who
resigns, quits or is discharged or placed on nonworking
status; revising the penalty imposed upon an employer for the
failure to pay such wages when due; and providing other
matters properly relating thereto.
Legislative Counsel’s Digest:
Under existing law, whenever a n employer: (1) discharges an employee, the
wages and compensation earned and unpaid at the time of the discharge become
due and payable immediately; and (2) places an employee on nonworking status,
the wages earned and unpaid at the time the employee is p laced on such status
become due and payable immediately. (NRS 608.020) Additionally, existing law
provides that whenever an employee resigns or quits his or her employment, the
wages and compensation earned and unpaid at the time of the employee’s
resignation or quitting are required to be paid not later than the day on which the
employee would have regularly been paid the wages or compensation or 7 days
after the employee resigns or quits, whichever is earlier. (NRS 608.030) Sections 1
and 2 of this bill revise those requirements with respect to compensation to instead
provide that any compensation of such an employee that is earned and unpaid at the
time the employee is discharged, resigns or quits is required to be paid in the same
manner and on the same day on which the employee would have regularly been
paid the compensation. Sections 1-3 of this bill define “compensation” to mean any
bonus, arrangement to share profits, fringe benefits, matching contribution made to
a plan authorized by 26 U.S.C. § 401( k) and any other similar contribution that an
employer has agreed to pay to an employee.
Existing law provides for the imposition of a penalty upon an employer who
fails to comply with the requirements pertaining to the payment of wages and
compensation of an employee who resigned, quit or was discharged or placed on
nonworking status. Under existing law, the wages or compensation of such an
employee continues at the same rate until the employee is paid or for 30 days,
whichever is less, if the employer f ails to pay the wages or compensation, as
applicable: (1) for an employee who is discharged, within 3 days after the wages or
compensation of the employee becomes due; (2) for an employee who is placed on
nonworking status, within 3 days after the wages of the employee becomes due;
and (3) for an employee who resigns or quits, on the day the wages or
compensation is due. (NRS 608.040)
Section 3 revises the amount of such a penalty . Rather than providing that the
wages or compensation of the employee contin ues at the same rate until paid or for
30 days, whichever is less, section 3 requires an employer who fails to pay the
wages of an employee who has resigned, quit or been discharged or placed on
nonworking status within the required time to pay the employe e an additional
amount equal to the amount the employee would receive for 8 hours of work at the
rate of 1 1/2 times his or her hourly wage rate for each day or portion of a day that
the wages to which the employee is entitled and any additional amount required by
section 3 are not paid or for 30 days, whichever is less.
Section 3 additionally requires such an employer to pay to an employee who
has resigned, quit or been discharged an amount equal to the amount of
compensation the employee would have earned for each day or portion of a day that
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the wages to which the employee is entitled and any additional amount required by
section 3 are not paid or for 30 days, whichever is less. Section 3 requires that
amount to be paid in the same manner and on the same day on which the employee
would have regularly been paid compensation if the employee had earned
compensation during that period.
EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 608.020 is hereby amended to read as follows:
608.020 1. Whenever an employer discharges an employee,
the [wages and compensation] :
(a) Wages earned and unpaid at the time of such discharge shall
become due and payable immediately.
(b) Compensation earned and unpaid at the time of such
discharge must be paid in the same manner and on the same day
on which the employee would have regularly been paid the
compensation.
2. Whenever an employer places an employee on a nonworking
status, the wages earned and unpaid at the time the employee is
placed on nonworking status are due and payable immediately.
3. As used in this section [, “nonworking] :
(a) “Compensation” means any bonus, arrangement to share
profits, fringe benefits, matching contribution to a plan authorized
by 26 U.S.C. § 401(k) or other similar contribution that an
employer has agreed to pay to an employee.
(b) “Nonworking status” means the temporary layoff of an
employee by the employer whereby the employee remains
employed and may be called back to work by the employer at a
future date. The term does not include an employee who an
employer:
[(a)] (1) Places on suspension pending an investigation relating
to employment;
[(b)] (2) Places on suspension pursuant to a disciplinary action
relating to employment;
[(c)] (3) Places on-call for available work; or
[(d)] (4) Approves to take a leave of absence.
Sec. 2. NRS 608.030 is hereby amended to read as follows:
608.030 1. Whenever an employee resigns or quits his or her
employment, the [wages and compensation] :
(a) Wages earned and unpaid at the time of the employee’s
resignation or quitting must be paid no later than:
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[1.] (1) The day on which the employee would have regularly
been paid the wages or compensation; or
[2.] (2) Seven days after the employee resigns or quits,
whichever is earlier.
(b) Compensation earned and unpaid at the time of the
employee’s resignation or quitting must be paid in the same
manner and on the same day on which the employee would have
regularly been paid the compensation.
2. As used in this section, “compensation” has the meaning
ascribed to it in NRS 608.020.
Sec. 3. NRS 608.040 is hereby amended to read as follows:
608.040 1. If an employer fails to pay [:] wages that are
earned and unpaid:
(a) Within 3 days after the wages [or compensation ] of a
discharged employee [becomes] become due;
(b) Within 3 days after the wages of an employee placed on
nonworking status pursuant to NRS 608.020 [becomes] become
due; or
(c) On the day the wages [or compensation is ] are due to an
employee who resigns or quits,
the employer shall, in addition to payment of the wages [or
compensation] of the employee [continues] which have become due
pursuant to NRS 608.020 or 608.030, as applicable, pay to the
employee an amount equal to the amount the employee would
receive for 8 hours of work at the [same] rate [from the day the
employee resigned, quit or was discharged or placed on nonworking
status until] of 1 1/2 times his or her hourly wage rate for each day
or portion of a day that the wages due pursuant to NRS 608.020 or
608.030, as applicable, and any additional amount required by this
subsection are not paid or for 30 days, whichever is less.
2. Any employee who secretes or absents himself or herself to
avoid payment of his or her wages [or compensation, ] or who
refuses to accept them when fully tendered to him or her [,] is not
entitled to receive the payment thereof for the time he or she
secretes or absents himself or herself to avoid payment [.] or refuses
to accept payment.
3. In addition to the amount required to be paid by subsection
1 and in addition to any compe nsation which has become due
pursuant to NRS 608.020 or 608.030, as applicable, an employer
who fails to pay the wages earned and unpaid of an employee who
has resigned, quit or been discharged within the time required by
subsection 1 shall pay to the empl oyee an amount that is equal to
the amount of compensation the employee would have earned for
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each day or portion of a day that the wages due pursuant to NRS
608.020 or 608.030, as applicable, and any additional amount
required by subsection 1 are not paid or for 30 days, whichever is
less. The amount must be paid in the same manner and on the
same day on which the employee would have regularly been paid
compensation if the employee had earned compensation during
that period.
4. For the purposes of subse ction 1, the hourly wage rate of
an employee must be:
(a) For an employee who is paid wages by the employer at a
rate based on an hour of time, the hourly wage rate of the
employee as of the day on which the employee resigned, quit or
was discharged or placed on nonworking status.
(b) For an employee who is paid wages by the employer by
salary, piece rate or any other wage rate except for a wage rate
based on an hour of time, the amount of wages earned by the
employee in the pay period in which the day t he employee
resigned, quit or was discharged or placed on nonworking status
falls, or if the employee has not earned any amount of wages
during that pay period, the immediately preceding pay period,
divided by the number of hours worked by the employee during the
pay period.
5. As used in this section, “compensation” has the meaning
ascribed to it in NRS 608.020.
Secs. 4-7. (Deleted by amendment.)
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