What are the laws governing wages and tips for tipped employees?
In Nevada, both federal and state laws govern wages and tips for tipped employees. According to the Nevada Labor Commissioner, an employee who regularly receives more than $30 a month in tips is classified as a tipped employee and must receive at least minimum wage, which is currently set at $7.25 per hour as of this writing. Under Nevada’s state laws, employers are not allowed to use their employee’s tips to meet the minimum wage, nor do employers have the right to keep any portion of their employee’s tips. If an employer is found to be in violation of Nevada wage and hour laws, they may be subject to paying up to four times the amount of wages due to the employee in damages. In addition, the employer may face civil or criminal penalties. An employer may choose to pay a tipped employee a “tip credit.” This means that the employer can pay the employee a lower rate than minimum wage so long as the employee’s tips bring the hourly wage up to minimum wage. However, the employer must ensure that tipped employees are taking in at least the minimum wage, or the employer could be liable for wage and hour violations. Finally, it is important to note that employers must pay tipped employees all of their wages at least once per month and must pay employees all wages due to them within three days of the employee’s termination date. If an employer fails to comply with Nevada wage and hour laws, they may face severe penalties.
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