Voluntary payroll deductions for employee food purchases, logged rather than individually signed

STATE OF NEVADA
JOE LOMBARDO DR. KRISTOPHER SANCHEZ
Governor Director

                                                                                                             BRETT K. HARRIS. ESQ.
                                                                                                               Labor Commissioner




                          DEPARTMENT OF BUSINESS AND INDUSTRY
                    OFFICE OF THE LABOR COMMISSIONER

                                                      July 7, 2025

Via Email and U.S. Mail

Jen Serio
Las Vegas Mini Grand Prix
1401 North Rainbow Blvd.
Las Vegas, NV 89108

   Re: Request for Advisory Opinion—Voluntary Payroll Deductions for Employee Food

Purchases

Dear Ms. Serio,

   Pursuant to Nevada Administrative Code ("NAC") Section 607.650, an Advisory Opinion

has been requested clarifying whether voluntary payroll deductions are permitted under Nevada
wage and hour laws.

                                              FACTS PRESENTED

   In your Request for Advisory Opinion, you presented the following facts:

             At our business, we offer an optional program that allows employees to purchase
             meals and snacks at a discounted rate during their shifts. These purchases are solely
             for the employee's benefit and convenience and are not required or initiated by the
             employer. Each transaction is documented in a physical logbook, where employees
             record the item and sign to authorize the payroll deduction. On their wage
             statements, the total amount of these food purchases is shown as a single,
             consolidated deduction line; individual purchases are not itemized on the pay stub.

             We briefly paused the program during a point-of-sale software transition, but
             several employees actively requested that we bring it back, citing its affordability
             and convenience. We reinstated it based on that employee feedback.

             We understand that:

              •     NRS 608.110 permits deductions when authorized in writing by the
                    employee;
              •     NRS 608.250 requires payment of the applicable minimum wage; and
              •     Federal law (29 CFR § 531.35) permits certain voluntary deductions for the
                    employee's benefit, even if they reduce net pay, so long as the employer has
                    paid at least the full minimum wage in gross wages and the deduction is not for
                    the employer's benefit.

                                     ADVISORY OPINION REQUEST

   Specifically, in your Request for Advisory Opinion you ask the following:

         1. Does Nevada law permit voluntary, written payroll deductions for food purchases
            that are for the employee's benefit, even if they reduce net pay below the
            minimum wage for the pay period?

         2. Are there any additional Nevada-specific restrictions (beyond NRS 608.110 and
            608.250) that would prohibit such deductions under the conditions described?

         3. Would our current process be considered compliant if:
              a. Each purchase is authorized via employee signature in a logbook;
              b. The total deduction is reflected as a single line item on the wage
                  statement;
              c. Gross wages for the period meet or exceed the applicable minimum wage?

                                              LEGAL AUTHORITY

NRS 608.110 Withholding of portion of wages.

 1. This chapter does not preclude the withholding from the wages or compensation of any

employee of any dues, rates or assessments becoming due to any hospital association or to any
relief, savings or other department or association maintained by the employer or employees for the
benefit of the employees, or other deductions authorized by written order of an employee.

2. At the time of payment of wages or compensation, the employer shall furnish the employee
   with an itemized list showing the respective deductions made from the total amount of wages or
   compensation.

   3. Except as otherwise provided by an agreement between the employer and employee, any
      employer who withholds money from the wages or compensation of an employee for deposit in a
      financial institution shall deposit the money in the designated financial institution within 5 working
      days after the day on which the wages or compensation from which it was withheld is paid to the
      employee.

NAC 608.160 Withholding of amounts from wages due. (NRS 607.160, 608.110)

1. Without the written authorization of an employee, an employer may withhold from the
   wages due the employee:
   (a) Any amount required by law; and

   (b) Any employee contribution to a benefit program, such as health insurance or a pension
   plan, as permitted pursuant to NRS 608.110.
   2. Except as otherwise provided in subsection 1, an employer may not deduct any amount
   from the wages due an employee unless:
   (a) The employer has a reasonable basis to believe that the employee is responsible for the
   amount being deducted by the employer;
   (b) The deduction is for a specific purpose, pay period and amount; and
   (c) The employee voluntarily authorizes the employer, in writing, to deduct the amount from
   the wages.
   3. An employer may not use a blanket authorization that was made in advance by the
   employee to withhold any amount from the wages due the employee.

In November of 2022, Nevada Ballot Question 2 passed eliminating the two-tier minimum wage.
As of July 1, 2024, the minimum wage rate is $12.00 per hour.

Pursuant to Article 15, Section 16(a) of the Constitution of the State of Nevada and Assembly Bill
(AB) 456 passed in 2019 during the 80th regular session of the Nevada Legislature, the minimum
wage rate of $12.00 per hour shall apply to all employees in the state of Nevada unless otherwise
exempted. This rate is effective as of July 1, 2024, and applies to all employees regardless of if
employees are offered employer health benefits or not.

                                                      ANALYSIS

        1. Does Nevada law permit voluntary, written payroll deductions for food purchases
           that are for the employee's benefit, even if they reduce net pay below the
           minimum wage for the pay period?

    NRS 608.110(1) permits certain withholdings from employees' wages. "This chapter does

not preclude the withholding from the wages or compensation of any employee of any dues, rates
or assessments becoming due to any hospital association or to any relief, savings or other
department or association maintained by the employer or employees for the benefit of the
employees, or other deductions authorized by written order of an employee." Thus, food purchases
could fall into the category of "other deductions". NRS 608.110 does not address a certain amount
of net pay as being required after such deductions are made from an employee's wages.

    NAC 608.160 further addresses withholdings of amounts from wages due. Again, there is

no mention of a certain amount of net pay as being required after such deductions are made from
an employee's wage. However, employers need to ensure that the voluntary deduction agreement
is compliant with Nevada labor laws. All criteria must be met: the deduction agreement to withhold
wages must be signed voluntarily by the employee; must not be a blanket authorization made in
advance; must include the specific purpose, pay period and amount; and the employer must have
a reasonable basis to believe the employee signing the deduction agreement is responsible for the
amount that will be deducted from the wages.

    NRS 608.110 and NAC 608.160 are silent regarding the issue of maintaining a specific net

pay amount after deducting voluntary deductions. Employers in Nevada are subject to both Nevada
labor laws and Federal laws. In this Request for Advisory Opinion, you assert Federal law 29 CFR
§§ 531.35 "permits certain voluntary deductions for the employee's benefit, even if they reduce
net pay, so long as the employer has paid at least the full minimum wage in gross wages and the
deduction is for the employer's benefit." Although the Office of the Labor Commissioner does not
regulate Federal labor laws, employers must still ensure proper compliance with Federal
requirements as necessary. The Labor Commissioner recommends you refer to the U.S.
Department of Labor for further guidance.

         2. Are there any additional Nevada-specific restrictions (beyond NRS 608.110 and
            608.250) that would prohibit such deductions under the conditions described?

   NRS 608.110 does not preclude voluntary deductions from being made to an employee's

wages if all criteria have been met pursuant to the statute and applicable administrative code. NRS
608.250 does not address voluntary deductions and does not contain language related to
maintaining a certain amount of net pay after such deductions are made from an employee's wage.
No other Nevada-specific restrictions are found within Chapter 608 related to this matter.

    Additionally, with the passage of Article 15, Section 16(a) of the Constitution of the State

of Nevada and Assembly Bill (AB) 456 passed in 2019 during the 80th regular session of the
Nevada Legislature, the new minimum wage rate has been established at $12.00 per hour for all
employees in the state of Nevada, unless otherwise exempted. Nevada's $12.00 per hour minimum
wage became effective July 1, 2024, to all employees regardless of whether the employer offers
health benefits. Likewise, this change does not preclude voluntary deductions from being made to
an employee's wages if all criteria have been met pursuant to the statute and applicable
administrative code. In addition, this change in the minimum wage requirements did not address
voluntary deductions and did not contain language related to maintaining a certain amount of net
pay after such deductions are made from an employee's wages.

         3. Would our current process be considered compliant if:
              a. Each purchase is authorized via employee signature in a logbook;
              b. The total deduction is reflected as a single line item on the wage
                  statement;
              c. Gross wages for the period meet or exceed the applicable minimum wage?

   No, your current process would not be considered compliant with Nevada labor laws.

   1. NRS 608.110 and NAC 608.160 clearly requires: the employee to voluntarily sign a
      deduction agreement to withhold wages; must not be a blanket authorization made in
      advance; must include the specific purpose, pay period and amount; and the employer
      must have a reasonable basis to believe the employee signing the deduction agreement
      is responsible for the amount that will be deducted from the wages.

   2. The fact that an employee signs a logbook to confirm a purchase and the total deduction
      is reflected in a single line item on the wage statement does not meet the requirements
      as specified in NRS 608.110 and NAC 608.160 as stated above.

   3. Gross wages for the period that meet or exceed the applicable minimum wage are
      compliant with Nevada labor laws. It is important to note: employees who are paid at
      a higher established rate must be paid at their established rate of pay.

   Please be advised that this Advisory Opinion is limited to the specific facts and

circumstances described herein. The Office of the Labor Commissioner may revisit this issue
through the Administrative Rulemaking Process. Please be further advised that subsequent
statutory or administrative rule changes or judicial interpretation of the statutes or rules upon which
any opinion is based may require that this Advisory Opinion be modified or abandoned. Should
you need additional clarification, please do not hesitate to contact our office at (702) 486-2650.

Sincerely,

Brett K. Harris, Esq.
Labor Commissioner