Stay ordered in changes to Nevada’s minimum wage law

CARSON CITY — A district court ruling making significant changes to Nevada's minimum wage law as it relates to health insurance has been put on hold until the issues are resolved by the Nevada Supreme Court, a state agency said Friday.

Carson City District Judge James Wilson stayed his Aug. 12 decision in Hancock v State of Nevada Office of the Nevada Labor Commissioner while the commissioner seeks clarification of the minimum wage provisions in Nevada's constitution from the high court.

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 $1 less than the current minimum wage if they provided qualified health care coverage to their workers.

The minimum wage in Nevada is $8.25 for workers who are not offered health care coverage and $7.25 for those who can get coverage.

In the August ruling, two provisions of Nevada's minimum wage rules were found invalid by Wilson.

One of those provisions says that Nevada employers can pay the lower wage if employees are "offered" health insurance even if they decline the coverage. The other says employers can count tips as part of an employee's compensation in determining the affordability of health insurance premiums.

In a release from the Nevada Department of Business and Industry announcing 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 state Supreme Court has given finality to the issues raised in the case.

Lawyers for Cody Hancock and Kwok Yen Moy of Las Vegas argued in the case that some employers offer substandard health insurance polices so they can offer workers the lower hourly wage.

The suit was filed in April 2014 after Labor Commissioner Shannon Chambers declined to rewrite the regulations.

Contact Sean Whaley at swhaley@reviewjournal.com or 775-687-3900. Find him on Twitter: @seanw801