Nevada Employers Brace for $12 Minimum Wage

In Nevada, some hourly workers will receive larger wages as a ballot measure to increase the minimum wage in the state of Nevada to $12 an hour is about to pass.

The Majority of Voters Supported the Raise of the Minimum Wage

On Friday, 54.5 percent of voters supported the change in the constitution to raise the state’s minimum wage, while 45.5 percent voted no to the amendment.

Despite the fact, that many employers are already paying an hourly wage of at least $12 due to the pressure on the labor market, representatives of leading businesses stated that the passage of the said constitutional amendment could affect businesses with tight margins.

Until now, the minimum wage is $10.50 an hour if an employer does not provide health benefits and $9.50 for employees who are offered health benefits.

Lauren Tieru, owner of the Paige and Rye store on South Hualapai Way, commented that the company was already paying a $12 hourly wage to the employees, and probably after the change, it will need to increase the wages.

Nina Manchev, owner of Forte Tapas and chief executive officer of The Caviar Collective, said that everyone at her restaurant received more than $12 an hour.

Question 2 to Eliminate the Two Tiers of Wage

Nevada Question 2, which concerns the minimum wage amendment aims to eliminate the two tiers and establish a standard rate equal to $12 an hour without taking into account benefits. This would take effect on July 1, 2024.

Scott Abbott, a managing partner at Las Vegas-based law company Kamer Zucker Abbott, commented that lawmakers would not be able to reduce the minimum wage below $12 without changing Nevada’s constitution.

I think that for some people, particularly workers, the minimum wage can never be high enough. If they raise the minimum wage to $25 an hour, those people would say, ‘OK, that’s a good start.‘

Scott Abbott, managing partner, Kamer Zucker Abbott

Michael Mack, owner of Max Pawn Luxury, commented that given that his store offers luxury items, it needs quality employees and thus, offers higher wages. Usually, new employees receive between $16 and $18 an hour. Mack also stated that all other wages would be increased due to the raise in the minimum wage.

Randi Thompson, who serves as state director of the National Federation of Independent Businesses, said employers and business owners were already facing high inflation and a difficult labor market. She added a wage increase would lead to a rise in the unemployment rate in Nevada, especially among younger workers. Thompson said that due to the high minimum wage, employers would prefer to ask their skilled workers for overtime work instead of hiring a young employee.