District Court issues stay of decision affecting enforcement of Nevada minimum wage provisions

District Court judge James Wilson this week has granted a stay of the August 12 decision of Hancock v State of Nevada Office of the Nevada Labor Commissioner that modifies how provisions of the State’s minimum wage regulations are enforced by the agency. 

The stay was granted pending the outcome of an appeal filed by the Office of the Labor Commissioner that will seek to clarify interpretation of constitutional provisions of Nevada’s minimum wage structure and the regulatory enforcement of those provisions through Nevada Administrative Code sections 608.100-608.108. 

Nevada’s unique two-tier minimum wage structure was created by a constitutional amendment passed by voters in 2006 which provided that employers could pay one dollar less than the current minimum wage if they provided qualified health care coverage to their workers. 

Legal questions requiring clarification on appeal concern whether tips received by the employee should be included as income to calculate the 10% health insurance premium. The appeal will also address whether an employer must actually “provide” qualified health insurance in order to pay the lower tier wage, as opposed to simply “offering” or making qualified health insurance available.  

According to the order granting the stay, the court found that the Hancock decision affects how the Labor Commissioner approaches the minimum wage calculation in enforcement proceedings and should be allowed to continue unimpeded until the Nevada Supreme Court has given finality to the issues raised in the case.

To view the Order Granting Defendants’ Motion to Stay Order Pending Appeal and the Hancock v State of Nevada Office of the Nevada Labor Commissioner Decision and Order, please visit www.laborcommissioner.com.

About the Office of the Labor Commissioner

The Office of the Labor Commissioner is a division of the Department of Business and Industry. The Labor Commissioner strives to ensure that all workers are treated fairly under the law by investigating complaints of non-payment of wages, State minimum wage, overtime, and prevailing wage disputes. The office also monitors youth employment standards, including work hours and safe, non-hazardous working conditions.

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