Minimum Wage in Nevada for 2025

Are you up to date on the minimum wage in Nevada for 2025? As of July 1, 2024, Nevada raised its minimum wage to $12.00 per hour, regardless of whether the employees have health benefits. Earlier, the city had followed a two-tier minimum wage system where employees with health benefits were paid at least $11.25 per hour. 

Nevada minimum wage is $4.75 higher than the federal minimum wage of $7.25. This 65.5% increase highlights the state’s significant move toward higher wage standards compared to the national wage, which has remained unchanged since 2009.

In this blog, let’s further break down the minimum wage in Nevada for 2025, what to expect in 2026, the tipped minimum wage in Nevada, minimum wage laws for different sectors, and how to ensure compliance. 

What is Minimum Wage in Nevada in 2025?

The minimum wage in Nevada 2025 is $12.00 per hour, as of July 1, 2024, following the final increase under Assembly Bill 456. So far, there are no scheduled increases set for 2025. 

This shift was made official when Nevada voters approved Ballot Question 2 in November 2022, which was to create a single flat minimum wage for all workers, regardless of health benefit status. This was a major move toward wage equality across the state.

What is the Minimum Wage in Las Vegas?

Minimum wage in Nevada Las Vegas follows Nevada’s statewide rate of $12.00 per hour, which took effect on July 1, 2024. Since Las Vegas is a city located in the state of Nevada, United States, it follows the state’s wage and hour laws. 

The average household income in Las Vegas is $60,465, with 80% of salaries ranging between $26,100 and $142,120. 

What to Expect for Nevada Minimum Wage in 2026 and Beyond?

The minimum wage in Nevada has not yet been set for 2026, and it will depend on inflation. 

From 2019 to July 2024, Nevada operated a tiered wage system where employers could pay $10.25 per hour if they offered qualifying health benefits, or $11.25 per hour if they did not. These wage tiers were automatically adjusted annually based on the Consumer Price Index (CPI).

Now that everyone earns $12.00 per hour, regardless of health benefits, the future increase in the minimum wage in Nevada will not use the same formula. But if policymakers adopt a similar CPI-based model again, the minimum salary in Nevada for 2026 will reflect the inflation between 2024 and 2025.

What is Nevada Tipped Minimum Wage?

The tipped minimum wage in Nevada is $12 per hour, and it is the same as the current minimum wage in Nevada​. Like most U.S. states, the tips earned by an employee do not belong to the employer unless the employee is part of a valid tip pool. Nevada also does not allow employers to take tip credits, and the employees are entitled to the entire $12 per hour minimum wage. 

NOTE: Tip credit is the amount an employer can count from an employee’s tips toward meeting the minimum wage. This means the employer can pay less in hourly wages as long as the employee earns enough in tips to reach the full minimum wage. If the tips plus wages do not add up to at least the minimum wage, the employer must pay the difference.

Minimum Wage in Nevada Increase Timeline 

The minimum wage policy started at $1 per hour in Nevada in 1967. This continued to be the minimum wage in Nevada till 2006. In 2006, the state announced a two-tier policy where employees with health benefits received a lesser minimum pay rate. 

It was only in 2024, after the approval of Ballot Question 2, that the state took back the two-tier policy and allowed equal pay for all employees. Here is an image of the minimum wage in Nevada increase timeline that shows all the increases from 1967. 

Who is Exempt from Nevada Minimum Wage Laws?

NV minimum wage laws are straightforward, but not everyone is covered. While most employees must be paid at least $12/hour, certain groups are officially exempt. These exemptions follow the federal Fair Labor Standards Act (FLSA) rules and Nevada-specific regulations. Below is a helpful breakdown of who falls outside the law’s coverage.

• Independent Contractors, Agricultural/Farm Workers, Commissioned Outdoor Sellers

These roles are not considered traditional “employees” under FLSA/Nevada law, so minimum wage and overtime provisions don’t apply.

• Executive, Administrative, and Professional (EAP) Employees

These are “white collar” staff whose primary job is managerial or intellectual work, for example, payroll, HR, or planning, and who exercise independent judgment. They must meet Nevada salary thresholds (at least around $844 per week, roughly $43,888/year) along with duties tests. 

• Creative Professionals

In Nevada, licensed or certified professionals in creative fields, such as artists, musicians, journalists, therapists, opticians, real estate agents, hairdressers, are exempt even if their pay is below the usual salary threshold. 

• Computer Employees

Skilled computer workers (e.g., programmers, systems analysts, software engineers) are exempt if paid at least $684 weekly or $27.63 hourly and if their work focuses on system design, testing, development, or analysis.

• Outside Salespeople

Employees whose primary duty is selling or obtaining contracts, and who spend the majority of their time away from the employer’s place of business, are exempt from wage and overtime rules.

• Highly Compensated Employees

Employees earning at least $107,432 annually (including a base pay of $684 per week) and performing office or non‑manual work, including at least one EAP duty, are exempt under federal and state rules.

How Nevada Minimum Wage Compares to Federal Minimum Wage?

Nevada minimum wage 2025 stands at $12.00 per hour for all workers, which is significantly higher than the federal minimum wage, which has remained at $7.25 per hour since 2009. That’s a difference of $4.75 per hour, making Nevada’s minimum wage approximately 65.5% higher than the federal standard.

Nevada’s higher wage reflects state-level legislative action and ballot measures designed to improve income standards for workers, while the federal minimum wage remains stagnant. This gap continues to highlight growing calls for an update at the national level.

What Happens During a Violation of Minimum Wage Laws in Nevada?

When an employer in Nevada violates minimum wage laws by paying workers less than the state-mandated $12.00 per hour, they can face serious legal and financial consequences. 

Under Nevada law, employees are entitled to recover all unpaid wages, plus damages equal to the amount of underpayment. This means if a worker is shorted $500, they could legally claim $1,000 in total.

Additionally, workers can file a wage claim with the state of Nevada labor commission or take legal action in court. Employers found guilty of wage violations may also be liable for court costs and attorneys’ fees, adding further financial risk.

To avoid any sort of penalties, employers should conduct regular audits of their payroll schedule, especially when minimum wage rates increase. Violating wage laws does not just hurt workers, it also damages a company’s reputation and exposes it to costly legal action. 

Minimum Wage in Nevada vs. Living Wage

While every state has a minimum wage, the living wage, the wage required to live a decent life, is usually much more. Let’s understand what a living wage is and how it compares with the minimum wage in Nevada under different family conditions. 

What is the Living Wage in Nevada?

The living wage represents the hourly income a person needs to earn while working full-time (2,080 hours per year) to cover basic expenses for themselves or their family without financial stress. In Nevada, the estimated living wage for a single adult comes to about $58,580 annually, which is just enough to meet essential needs like housing, food, and healthcare.

Comparison Between Minimum Wage and Living Wage in Nevada

For many workers, the minimum wage in Nevada may fall short of covering basic expenses. This section breaks down the difference between the two and explores how the minimum wage increase in Nevada compares to what’s truly needed for a decent standard of living.

Minimum Wage vs. Living Wage for 1 Adult:

	0 Children	1 Child	2 Children	3 Children
Living Wage	$23.85	$41.21	$52.35	$68.05
Minimum Wage	$12.00 per hour

Minimum Wage vs. Living Wage for 2 Adults (1 Working):

	0 Children	1 Child	2 Children	3 Children
Living Wage	$33.38	$39.16	$43.20	$51.06
Minimum Wage	$12.00 per hour

Minimum Wage vs. Living Wage for 2 Adults (2 Working):

	0 Children	1 Child	2 Children	3 Children
Living Wage	$16.69	$23.21	$28.67	$35.67
Minimum Wage	$12.00 per hour

How does Minimum Wage in Nevada Impact Small Businesses?

While the minimum wage NV state follows aims to support workers and improve living standards, it also directly impacts how small businesses manage costs, staffing, and day-to-day operations. 

If wage increases continue, the total yearly earnings based on average working hours in a year could see a significant bump. Let’s take a closer look at how this change affects small employers:

1. Payroll Costs and Profit Margins

Small businesses, especially those with hourly staff, see a clear rise in labor costs. In lean-margin operations like cafes or boutiques, this can impact profitability or cash flows. 

Unlike large chains, small businesses are often not able to absorb the wage hikes through high saless and many lack the capital to invest in automation. Thus, they must adapt to the minimum wage in Nevada increase through price adjustments or operational changes. 

2. Effects on Hiring and Employment Levels

Some businesses may slow down recruitment or reduce staff hours to manage higher payroll costs. With rising wages, employers are also focusing more on productivity calculation and performance per hour. 

In certain cases, small businesses may decide not to replace workers who leave, especially for entry-level or part-time roles. This can slightly reduce job opportunities, particularly for teens or workers with limited experience.

3. Price Pass-Through & Consumer Behavior

The minimum wage increase 2024 in Nevada made small businesses raise their prices slightly to cover the higher payroll costs. But these price increases are usually very modest, with studies showing that even in industries like fast food or groceries, prices only go up by about 0.3% to 1.4%. Because of that, small businesses do not see a big drop in sales. 

How to Ensure Compliance with Nevada Wage Laws?

Ensuring compliance with Nevada wage laws is not just about avoiding penalties. It is also about building trust with your employees and operating a business responsibly. Here are some of the best ways to ensure compliance with Nevada wage laws and minimum wage in Nevada:

1. Monitor Regulatory Changes

Nevada updates its minimum wage annually based on the Consumer Price Index (CPI), with changes often tied to legislation like Ballot Question 2 (passed in 2022). It is important to regularly keep an eye on updates from the Nevada Labor Commissioner and federal agencies to stay compliant.

2. Review Employee Classifications Regularly

Misclassifying employees, such as labeling non-exempt staff as exempt, can lead to wage violations and back pay liabilities. Regularly assess job duties, pay structures, and exemption status to ensure they align with both state and federal labor laws.

3. Conduct Internal Audits

Regularly, schedule internal audits to check the minimum wage in Nevada rate changes, overtime practices, payroll records, and tip credit usage. By doing so, businesses can uncover small compliance gaps before they escalate into costly violations.

4. Provide Accurate Pay Stubs

In Nevada, employers are legally required to provide employees with detailed pay stubs that include essential information such as the number of hours worked, hourly or salary pay rates, itemized deductions (like taxes or benefits), and total gross and net wages earned for the pay period.

By consistently offering clear and comprehensive pay statements, employers not only meet legal obligations but also foster greater transparency in the workplace.

5. Accurately Track Employee Work Hours

Use reliable time-tracking tools like ClockDiary to accurately document employee work hours, breaks, and overtime. These tools simplify timekeeping and help ensure that every minute is accounted for. Maintaining accurate records is not just a best practice but also critical when addressing wage dispute claims and demonstrating compliance during audits or inspections.

Precisely Track Employee Working Hours to Provide Fair Wages 

As the minimum wage in Nevada continues to rise, it is crucial for employers to maintain precise records of employee work hours. That’s where Clockdiary becomes an essential tool for modern employers. It simplifies time tracking, payroll, and compliance, all in one easy-to-use platform. Here’s how it supports smooth and error-free workforce management:

• Precise Time Tracking

Clockdiary captures exact clock-in and clock-out times automatically. This removes the need for manual entries, reducing errors and ensuring employees are paid accurately for every minute worked.

• Automatic Overtime Monitoring

The system flags when employees exceed 40 hours per week, making it easy to stay compliant with overtime laws without manual calculations or oversight.

• Break Tracking and Classification

Breaks are clearly logged, helping employers differentiate between paid and unpaid breaks. This minimizes wage miscalculations and helps avoid labor violations.

• Transparent Timesheet History

Managers can easily access detailed timesheets for audits, approvals, or dispute resolution. This boosts accountability and builds trust among employees and supervisors.

• Payroll System Integration

Clockdiary integrates with payroll software like QuickBooks and ADP, allowing you to export time and attendance data seamlessly. This reduces manual input, speeds up payroll, and helps eliminate costly errors.

Frequently Asked Questions