SB196 would require small businesses to provided paid sick days

Nevada’s large employers could see a change in how they manage sick leave for their employees if legislation passes through the Nevada Assembly this session.

Senate Bill 196, which would require certain employers with 50 employees or more to provide paid sick leave. Several local and national organizations are opposing the measure.

In a written statement, the Henderson Chamber of Commerce said, if passed, the legislation “could prove burdensome to businesses in terms of additional accounting and administrative support required to adhere to it,” as the legislation was introduced. It has since been amended.

The chamber was concerned the bill did not “adequately addresses how employers manage paid time off accrued by employees if they choose to leave the business on their own accord, among other concerns.”

The legislation passed the Senate on April 18 in a 12-9 vote; the proposed bill has since moved into the Assembly’s court; which, as of press time, has read the bill once and referred it to the Committee on Commerce and Labor.

Under SB196, employees can earn one hour of paid sick leave for every 30 hours worked. Employees could gain access to the benefit after 90 days of employment.

Employers do have options. They can limit the accrual to 48 hours per year and cap usage at 24 hours per year. The bill also exempts several categories of employees: those who are considered temporary employees and work on an occasional or irregular basis, construction workers, or employees in a bona fide executive, administrative or professional capacity, according to language in the bill.

There are also exemptions for employees under a bargaining agreement that provides employees with a minimum of 24 hours of paid sick leave per year, along with other stipulations. Some organizations are exempt that include “nonprofit religious, charitable, fraternal or other organization that qualifies as a tax-exempt organization,” language in the bill stated.

National industry organizations have concern over the bill’s implementation.

Will Hansen, senior vice president, retirement policy at the ERISA Industry Committee, said the bill allows for hours to carry over to the next year, not the typical situation for most employers.

Hansen said many employers typically frontload, whether it’s vacation or sick time, at the beginning of the year. And these hours don’t typically carry over to the following year. It’s usually a use-it-or-lose-it situation.

“The issue that we have with Nevada is that they’re mandating the carryover of any unused sick time, which is a lack of flexibility for our large employers,” Hansen said.

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