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Legislative session in whirlwind phase as important deadlines loom

Connect Your Business

Legislative session in whirlwind phase as important deadlines loom

The 75th Nevada Legislative session reached its midpoint on April 2nd and based on what has been produced so far, we can expect a whirlwind of activity during the next 60 days. While the deadline has passed for the introduction of bills from both individual legislators and committees, the next important deadlines are April 10th for committee passage (first house) and April 21st when the first house passage of bills needs to take place.

There has been a flurry of bills addressing every conceivable topic. However what we haven’t seen is any movement towards concrete reform to the Public Employees Retirement and Benefits Systems. A number of bills have been introduced that make cursory changes to PEBS and/or PERS but nothing to date that will address the critical problem that this growing unfunded liability continues to create at great risk to taxpayers.

With a projected budget shortfall of somewhere between $2.2 -$3 billion, we’ve also not seen what tax increases or cuts that the legislators are discussing. While we are sure that there are discussions taking place in every corner and room within the legislative building, nothing has made its way into the public arena as of this moment.

Cost of Business Going Up

Effective July 1, 2009, Nevada’s minimum wage will increase, thanks to a voter initiative that amended the state’s Constitution without regard to market conditions. The minimum wage will increase from its current $5.85 per hour for employees that have health benefits available to them, and for those without such benefits, the minimum wage will increase from $6.85 to $7.55.

The new increase will also affect how overtime is paid. Nevada is one of six states with a daily overtime requirement in addition to weekly requirements. What does this mean? It means that employers must pay 1 ½ times an employee’s regular wage rate when they work more than 40-hours in any workweek or more than 8 hours in any workday. Based on the new minimum wage scale that becomes effective July 1, daily overtime rates may be applicable if an employee is paid less than $9.83 per hour with available health benefits and $11.33 per hour without health benefits.

Unfortunately with small businesses struggling throughout the state with the current economy, this probably will translate into more lost jobs and less hiring of entry level workers. For more information on the minimum wage and overtime requirements, log onto the Nevada Dept of Labor’s website at www.laborcommissioner.com

On a Federal Front

The Employee Free Choice Act (EFCA) was introduced in both the House (HR 1409) and Senate (S. 560) with support from House Representatives Shelley Berkley and Dina Titus as well as Senator Harry Reid; Congressman Dean Heller and Senator John Ensign strongly oppose this job killing legislation.

The goal of EFCA is to do away with secret ballot elections in union organizing drives, and replace them with a simple ‘card check’ process that is open to harassment and intimidation. It would impose binding arbitration on employers and employees if they don’t agree on a contract within 120 days, and both sides would have to live with the consequences for two years. It would implement penalties for labor law violations – on employers, but not unions.

This issue is so important and the ramifications if this passes so devastating to business growth and the growth of our economy, that the area chambers along with other business and trade organizations will come together with Senator John Ensign on Friday, April 17th from 9:30-11:00am at Brady Industries (7055 Lindell Road). We urge you to attend to learn more about how the passage of the Employee Free Choice Act will affect your business. In the meantime, write your congressional representatives and tell them not to support this bill.