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Minimum Wage Increases Compared – Federal Workers Vs. Nevada

Minimum wage rates have been in the news a lot and for good reason. Big things are happening that could have a big impact on businesses. What do you think these numbers mean for our Nevada economy?

Federal Contractor Employees – $15

On April 27, 2021, President Joe Biden issued an executive order requiring federal contractors to pay their employees a $15 minimum wage rate. Beginning in 2023, new minimum wage rates for federal contractor employees will become effective on Jan. 1. 

Affected Employers

  • The executive order applies to federal contractors and subcontractors. Compliance with this order will be monitored by federal agencies for their respective contracts. 
  • The order applies to new federal contracts, solicitations and contract renewals entered into or exercised on or after Jan. 30, 2022. The order does not apply to grants, nor to contracts or agreements with Indian tribes.
  • This executive order does not alter or excuse compliance with any applicable federal or state prevailing wage law, or any local law establishing a minimum wage rate higher than the rate established by this order. 

Tipped Employees

Under federal law, tipped employees can receive a cash wage that is lower than the minimum wage rate. For tipped employees working for a federal contractor, the cash wage will increase to $10.50 per hour on Jan. 30, 2022. Beginning Jan. 1, 2023, the cash wage for tipped employees will be 85% of the minimum wage rate for federal contractors. 

Employers must ensure that tipped employees receive compensation that is at least equal to the minimum wage rate. This may require increasing a tipped employee’s cash wage so that the employee’s cash wage and tips, when combined, are at least equal to the minimum wage rate. (Source)

Nevada – $8.75 w/benefits and $9.75 w/o benefits

The State of Nevada has a two-tier minimum wage system based on qualifying health benefits being offered to employees.  For the period covering July 1, 2021, through June 30, 2022, the minimum wage rate is $8.75 per hour if the employee is offered qualifying health benefits, and $9.75 per hour if the employee is not offered qualifying health benefits.

An increase in the minimum wage will also increase the daily overtime rates for the same period beginning July 1, except for those employees exempted from overtime requirements under NRS 608.018.  

Employees in Nevada that earn more than one and one-half times the minimum wage for both tiers – $13.125 per hour for those offered health benefits and $14.625 per hour for those not offered health benefits- are eligible for overtime at one and one-half times their regular rate of pay for over 40 hours of work in a week.

For employees that earn less than the amounts listed above, in addition to overtime pay after the traditional 40-hour week, Nevada law also provides for overtime pay at one and one-half times an employee’s regular rate of pay for working more than 8 hours in a 24-hour period. (source)

Nevada’s annual bulletins for minimum wage and overtime can be found at http://labor.nv.gov.

Melissa Marsh, SPHR, SHRM-SCP, is a human resources consultant and founder of HRinDemand, a human resources company in Reno, NV, offering expert guidance and easy-to-use tools to help small businesses with employment regulations, compliance, employee relations, and company growth.


“President Biden Orders $15 Minimum Wage for Federal Contractor Employees.” HR360, 2021, www.hr360.com/blogs/HrNewsAlerts.aspx?blogid=839967&id=15175.

“California’s 2021 Minimum Wage Increase to Impact Exempt and Nonexempt Employees: Davis Wright Tremaine.” Employment Advisor | Davis Wright Tremaine, www.dwt.com/blogs/employment-labor-and-benefits/2020/12/2021-california-state-local-minimum-wage.

Nevada’s Minimum Wage and Daily Overtime Rates Increase Beginning July 1, 2021, 2021, business.nv.gov/News_Media/Press_Releases/2021/Labor_Commissioner/Nevada%E2%80%99s_minimum_wage_and_daily_overtime_rates_increase_beginning_July_1,_2021/#:~:text=For%20the%20period%20covering%20July,not%20offered%20qualifying%20health%20benefits.