Nevada's New Minimum Wage Takes Effect | KRNV

RENO, Nev. (News 4 & Fox 11) — Nevada's minimum wage increased Wednesday for the second time since the legislature passed the bill in 2019.

Under the 2019 bill, the state minimum wage will increase 75 cents each year through 2024.

Nevada's minimum wage is now higher than 29 other states;and Nevada is one of thirty states with a minimum wage higher than the federal rate.

The wage is broken down into two tiers for employees who receive company health benefits and those who do not.

As of Wednesday, July 1, those pay bumps are now at $8.75 for the lower tier and $9.75 for the higher. The chart below shows the expected increase for the next three years.

Nevada minimum wage increases each year through 2024.

Dean Christopher, the owner and operator of the Blind Onion Pizza and Pub and Wild Garlic Pizza, is proud that he already pays employees above minimum wage.

He said that before today's new rate, his starting pay was over two dollars more than minimum wage.

"I know I can't do this without them," said Christopher. "I really feel we're a team."

He said his over 80 employees range from university students to career restaurant workers. According to Christopher, his high pay has enabled employees to buy homes.

With an extremely tight labor market right now, many, if not most, businesses are offering hiring bonuses, increased wages, and better incentives to attract new employees.

Christopher knows he has to keep his wages competitive to keep his employees happy.

This year's increase won't affect his current operations, but he'll have to reconsider starting next year. He doesn't see any other way but raising his prices.

"Especially after the pandemic, we haven't raised our prices in over almost two years now," said Christopher. "So that could possibly be a situation where we're going to have to raise our prices in probably another year, possibly."

He said it's a move reacting to the market and not one he wants to make, saying the pizza market is extremely competitive.

Christopher does fear for his employees' bottom line once the minimum wage hits $12 an hour and he raises prices.

"Maybe our customers are tipping 15-20%. Maybe they're going to tip five or ten percent in the future because of our prices reflecting with the markets at that point," he added.

Governor Sisolak signs bills on minimum wage, collective bargaining, and affordable housing.

Wednesday's minimum wage increase is also coupled with a raise in daily overtime rates. Unless an employee is exempt from overtime pay, those who work more than eight hours in a 24 hour period are now entitled to time-and-a-half overtime rates (with some exceptions).

The Office of the Labor Commissioner in Nevada's Department of Business and Industry told News 4 they expect all employers to comply with the new minimum wage taking effect July 1.

Despite some tough economic circumstances from businesses due to pandemic restrictions, the office said they haven't received much pushback this year from employers. Their full statement is below.

The federal minimum wage remains at $7.25 an hour. It has not increased since 2009.

FULL STATEMENT FROM NEVADA LABOR COMMISSIONER:

The Nevada Labor Commissioner has not received a great deal of questions or pushback relating to the upcoming minimum wage increase on July 1, 2021. The Nevada Labor Commissioner educated Nevada employers about the increase as early as last year when the 2020 minimum wage increase went into effect. The Nevada Labor Commissioner has no authority to postpone or not implement the minimum wage increase. That power is vested with the Nevada Legislature. The COVID-19 public health emergency did cause economic impacts across the State of Nevada and the Country. The majority of Nevada employers responded to those challenges in a productive and positive manner and made every effort they could to keep Nevada workers employed. The Nevada Labor Commissioner is confident that Nevada employers will implement the minimum wage increase as required.

--

Contact reporter Brett Forrest at [email protected].

Follow @brettforrest89 on Twitter or @brettforrestKRNV on Facebook.