| Update Applicable to: | Effective Date |
| All Employers in Nevada | October 1, 2025 |
What happened?
On May 27, 2025, the Nevada Legislature passed Senate Bill 198 (SB198), which updates state labor laws on how and when employers must pay wages and compensation when an employee leaves a job or is temporarily laid off. The bill is currently awaiting the Governor’s signature.
Overview:
SB198 ensures that employees receive all earned wages and compensation promptly when they:
- Resign or quit.
- Are discharged (fired)
- Are placed on nonworking status (temporary layoff)
The Changes:
- Expanded Definition of Compensation: Compensation now includes bonuses, profit-sharing, fringe benefits, 401(k) matches, and similar agreed-upon payments.
- Revised Payment Timing
- Wages must be paid immediately (for discharge or layoff) or by the earlier of the next payday or 7 days (for resignation).
- Compensation must be paid on the employee’s regular payday, regardless of how the employment ended.
- Stronger Penalties for Late Payment
- Employers must pay an additional penalty equal to 8 hours of pay at 1.5× the employee’s hourly rate for each day payment is late, up to 30 days.
- Employers must also pay the compensation the employee would have earned during the delay.
Source References
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