Effective Saturday, Nevada's minimum wage earners are receiving a pay raise, thanks to legislation passed in 2019. This legislation established a tiered system, with the base minimum wage now rising to approximately $11.25 per hour. Employees receiving qualifying health benefits are subject to a slightly lower rate of $10.25. This incremental increase will continue in 75-cent steps until July 2024.

This wage increase coincides with a period of significant wage inflation. The Las Vegas Review-Journal has reported that many traditionally minimum wage positions are now offering several dollars more per hour due to the heightened competition for employees following the pandemic lockdowns. Tray Abney, Nevada state director for the National Federation of Independent Businesses, noted that some fast-food establishments are offering starting wages between $15 and $20 an hour, demonstrating the market-driven pressure to attract workers.

Following a voter-approved constitutional amendment in November, the minimum wage will rise again to $12 per hour in July 2024. This amendment also empowers the Nevada Legislature to enact laws establishing even higher minimum wage rates above the constitutionally mandated level. Additionally, any increase to the current federal minimum wage of $7.25 per hour would automatically trigger a corresponding increase in Nevada's minimum wage.

While some business groups express concern about the potential for further wage increases beyond 2025, others are less apprehensive. Paul Saginaw, owner of Saginaw’s Delicatessen in Circa Resort, shared his experience that increased wages can sometimes correlate with lower overall labor costs. He attributes this to reduced employee turnover, leading to a more experienced and productive workforce. Saginaw highlighted that the rising cost of goods, rather than wages, presents a more significant challenge for his business.

Abney, however, points out that businesses facing mandated wage increases might compensate by reducing benefits or decreasing their workforce to manage costs.