by Strategic HR Partners
by Strategic HR Partners
I am frequently asked about the payment of wages in Nevada when an employee leaves employment and if there are differing rules when it comes to voluntary versus involuntary terminations.
Nevada-based employers have three statutes that they must take into consideration when an employee leaves the company.
According to NRS 608.020, when an employee is discharged, the wages and compensation earned and unpaid at the time of such discharge shall become due and payable immediately.
NRS 608.030 addresses whenever an employee resigns or quits employment, the wages and compensation earned and unpaid at the time of the employee’s resignation or quitting must be paid no later than:
1. The day on which the employee would have regularly been paid the wages or compensation; or
2. Seven days after the employee resigns or quits, whichever is earlier.
In addition, NRS 608.040 enacts penalties for failure to pay in a timely matter and can cost the employer up to 30 days additional pay.
1. If an employer fails to pay:
(a) Within 3 days after the wages or compensation of a discharged employee becomes due; or
(b) On the day the wages or compensation is due to an employee who resigns or quits, the wages or compensation of the employee continues at the same rate from the day the employee resigned, quit or was discharged until paid or for 30 days, whichever is less.
2. Any employee who secretes or absents himself or herself to avoid payment of his or her wages or compensation, or refuses to accept them when fully tendered to him or her, is not entitled to receive the payment thereof for the time he or she secretes or absents himself or herself to avoid payment.
In summary, it is my recommendation that employers develop a well-planned termination procedure and checklist. As a best practice, employers should consider paying the departing employee on their last day of work via a manual check(s) and stopping all direct deposits in the payroll system. For assistance in developing a termination procedure and checklist, please contact us today.
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