It’s not surprising that you’re a little confused.
In November 2006, Nevada voters approved an amendment to the state constitution that created a two-tiered minimum-wage system. Together, they’ve been raised three times in the past two years.
The first minimum wage, $6.65 an hour, is for employees who are covered by qualifying employer health insurance. To qualify, a worker’s health-insurance premium must be less than 10% of the worker’s gross taxable income. This wage went up to $5.85 on July 1, 2008; then, after the federal minimum wage was raised to $6.55 on July 24 of the same month last year, Nevada’s went up again; Nevada employees are entitled to either the Nevada or federal minimum wage, whichever is more.
The second, $7.03 an hour, is for those who don’t receive health-insurance coverage from their employer.
Many employers opt for the higher minimum wage, as it still saves them money over paying for health insurance, which costs more than 35 cents an hour. Employers are not allowed to count tips toward the minimum-wage calculations.
Some employees receive less than the minimum minimum wage; they’re covered by union contracts whose labor agreements waive the right to the legal minimum.
Hourly employees must receive one of the two minimum wages. But the minimum wage is calculated differently for salaried employees. It’s based on the pay period, rather than the number of hours worked.
For example, cab drivers are paid by a formula based on how many riders they haul from place to place, not how many hours they work.
Note that on July 1, 2009, Nevada’s minimum wage with health insurance rises to $6.70 and $7.73 without health. Then, again, on July 24, 2009, the federal minimum wage rises to $7.25, thus, so will Nevada’s, with health. Without health, the minimum wage will remain at $7.73.
Finally, the Nevada minimum wages will rise one more time, to reflect another raise in the federal minimum, on July 1, 2010: $7.40 with insurance, $8.43 without.
