Nevada blends vast desert landscapes with vibrant city life, but it also has distinct labor laws that shape the workforce. In November 2022, voters approved Ballot Question 2, which eliminated Nevada’s two-tier wage system and set a single minimum wage of $12.00 per hour starting July 1, 2024.

In 2025, the Nevada minimum wage remains $12.00 for all employees statewide. Below we detail these current rates and key wage-law rules for 2025–26.

What is the Nevada Minimum Wage 2025?

The Nevada minimum wage in 2025 is $12.00 per hour. According to the Nevada Department of Business and Industry, Office of the Labor Commissioner, that rate is listed as the applicable statewide minimum wage effective July 1, 2025, and it applies to all employees unless an exemption applies explicitly.

This $12.00 rate follows Nevada’s recent changes to end the older two-tier system (where rates varied depending on whether an employer offered qualifying health benefits). Ballot Question 2 (approved in November 2022) and subsequent state guidance eliminated the two-tier distinction as of July 1, 2024, so the single statewide floor now governs Nevada wages; employer guidance and practice notes from labor-law specialists and payroll providers reflect the exact change.

There is no scheduled statutory increase for 2026; any further rise would require legislative action or a new ballot measure (projections, therefore, depend on future policy decisions rather than an automatic indexing formula).

Service Charges, Mandatory Gratuities, and Tip-Pooling Rules in Nevada

Automatic service charges and mandatory “auto-gratuities” are treated differently from voluntary tips: service charges are employer revenue and therefore counted and taxed as wages (the employer may choose how, or whether, to distribute them), while voluntary tips belong to employees and must be handled accordingly.

Nevada allows mandatory tip-pooling arrangements but requires that all collected tips be distributed to employees (employers may not keep employees’ tips), and state and federal guidance bar managers or supervisors from retaining pooled tips except in very narrow circumstances where a customer directly tips a manager for personal service. Employers should have a clear, written tip-pool policy that explains who is in the pool and how distributions are made.

Tax and Payroll Practice

Employers must withhold and report wages and any distributed service-charge compensation correctly, and employees are required to report tips to employers for withholding when IRS reporting thresholds are met.

For best practice, itemize service-charge payments and tip distributions on pay statements, keep contemporaneous records, and document your tip-pool rules so you can demonstrate compliance if the Labor Commissioner or IRS asks.

A Historical Overview of Nevada’s Minimum Wage

The Nevada minimum wage has experienced significant changes over the years, reflecting the state’s economic trends and the changing needs of its workers. This history includes several legislative changes, economic fluctuations, and efforts to ensure fair wages for employees.

Below is an overview of the critical developments in Nevada’s minimum wage history.

• 1967–1978: Nevada initially matched the federal rate, rising from $1.00 to about $2.65 (by 1978).
• 1981: Nevada enacted its own state-specific minimum wage.
• 1989–2003: The rate hovered around $5.15 (same as federal).
• 2004: Increased to $6.75 per hour.
• 2006: Nevada adopted a two-tier system: $6.85 with qualifying health benefits, $7.85 without, plus annual adjustments by inflation/federal law.
• 2010–2018: Gradual increases brought it to $7.25/$8.25 (with/without benefits).
• 2019: Assembly Bill 456 mandated $0.75 annual raises through 2024, ultimately targeting $11 (with benefits) and $12 (without).
• July 1, 2023: $10.25 (with) and $11.25 (without).
• July 1, 2024: $12.00 flat (two-tier eliminated by Ballot Q2).
• July 1, 2025: $12.00 (no change)

Compliance with Wage Laws in Nevada: Essential Points for Employers

Small business owners in Nevada should stay informed about the evolving minimum wage laws to ensure they are prepared for any financial implications on their operations. Owners must evaluate their business category to determine how the varying minimum wages might impact both their business and their employees.

Firstly, reviewing and auditing business expenses is essential. This allows business owners to adjust and make necessary changes or reductions in response to an increase in the state’s minimum wage rates. Secondly, focusing on hiring the right employees can improve retention, engagement, and productivity.

After hiring, it is essential to foster strong relationships with employees, offer opportunities for advancement, and promote effective engagement strategies to retain valuable team members. Lastly, updating business technology can be beneficial. For instance, implementing advanced systems can streamline operations by reducing time spent on administrative tasks, thus allowing more focus on business growth. This approach not only aids in compliance with wage regulations but also enhances overall business efficiency.

Here are some additional things to consider:

1.    Overtime Pay Requirements

Nevada law provides daily and weekly overtime rates. Employees earning less than 1.5× the minimum wage ($18.00) must receive 1.5× pay for overtime beyond 8 hours in a day or 40 hours in a week. Those earning at least $18 (1.5×$12) get overtime only after 40 hours/week.

(Any hour worked over 12 in a day generally must be paid at double the regular rate, by state law.) Highly compensated or managerial employees meeting federal salary tests are exempt from these overtime rules.

2.    Record-Keeping Obligations

Employers must maintain accurate payroll records (hours worked, wages, deductions) for at least three years. Pay statements each period should itemize gross wages, all deductions, and net pay, including any overtime pay.

Nevada law requires regular paydays (at least semi-monthly) with proper advance notice of any change in pay schedule.

3.    Timekeeping and Transparency

All working hours—regular time, overtime, breaks, leave- should be recorded. Employers must display current wage rates on job postings and notices to avoid misclassification or pay disputes.

In particular, if an employee earns tips or commissions, the employer must ensure total compensation meets at least the $12 minimum (Nevada prohibits “tip credits,” so tips do not count toward the minimum wage).

4.    Equal Pay and Non-Discrimination

Nevada enforces equal pay laws forbidding wage discrimination based on gender for substantially similar work. Employers should regularly review compensation to ensure compliance with both state and federal equal-pay rules.

5.    Break Policies

Nevada law requires a paid 10-minute rest break for every 4 hours of work, plus an unpaid 30-minute meal break for each 8-hour shift. For example, an 8-hour shift entitles an employee to two paid 10-minute breaks and one 30-minute lunch.

Rest breaks count as hours worked, and meal breaks (for 8-hour shifts) must not be skipped. (The old “over 6 hours = one meal break” rule was replaced; now the 8-hour trigger is explicit.)

6. Specific Considerations for Commissioned Sales and Minor Employees

Employers paying commissions must ensure that an employee’s combined hourly wage plus commissions equals at least $12 per hour. Nevada’s child labor laws also impose strict limits: minors (under 18) have restrictions on work hours and prohibited occupations.

Notably, Nevada’s constitutional definition of “employee” excludes workers under 18 in certain after-school or short-term training programs, meaning those particular youth positions may fall outside the minimum-wage requirement. Always verify that young workers’ schedules comply with state rules.

Nevada adheres to guidelines similar to the federal Equal Pay Act, prohibiting wage discrimination based on sex or gender for equivalent work within the same business. This is part of a broader mandate to ensure fair and equal compensation for all employees.

Conclusion

Nevada’s minimum wage for 2025 remains $12.00 per hour for all employees, a continuation of the uniform rate set in mid-2024. This change reflects the state’s move toward wage equality by removing the health-benefits wage tier. Employers should ensure their payroll and staffing plans account for the $12 wage and associated overtime rates.

Compliance with wage-and-hour laws—including proper recordkeeping, pay disclosures, and break times—is crucial. By adapting financial strategies and human-resources practices accordingly, Nevada businesses can meet the new requirements, support fair treatment of workers, and maintain legal compliance under the state’s updated wage laws.

Frequently Asked Questions