When separating from employees, it’s important to follow the rules of the Nevada employee separation process. Employer obligations and employee termination laws vary from state to state, so understanding the laws is key.
This employee separation checklist and guide will help you understand final paycheck requirements, separation notices, severance agreements, reporting employee termination, and withdrawing registration to do business in the state.
Nevada Employee Separation Checklist
- Provide final paycheck
- Issue separation notice
- Execute severance agreement
- Report termination
- Withdraw registration to do business
1. Final Paycheck Requirements in Nevada
Nevada law requires prompt payment to separated employees. Terminated employees must be paid immediately. Those who resign must receive their final paycheck by the next scheduled payday or within seven days, whichever is sooner. All earned and unpaid wages must be included in this final payment.
While employers are not required to pay out accrued and unused vacation time (unless stipulated by an employee contract or policy), it’s considered best practice to deliver final wages through regular payment methods. Employers who fail to comply may be liable for the unpaid wages, plus up to 30 days’ additional wages at the employee’s regular pay rate.
2. Firing Employees in Nevada
Firing a Nevada employee is a straightforward process, since Nevada is an at-will employment state—both employer and employee can terminate employment at any time, for any legal reason. However, note that Nevada has a notice requirement: all employees must be provided Notice NUCS 4139 – Information for the Unemployed Worker upon separation.
3. Severance Agreements in Nevada
When you execute a severance agreement in Nevada, you must outline the claims being released under both federal and state law. Under Nevada law, this includes claims related to Nevada Employment Practices Act, Nevada Pregnant Workers Fairness Act, Nevada’s equal pay laws, Nevada’s leave laws, and Nevada’s minimum wage and overtime laws. It’s important that the release only applies to claims that have arisen before the agreement’s effective date, not any future claims.
Nevada law also places specific restrictions on non-disparagement clauses in severance agreements. These clauses cannot prevent employees from disclosing or discussing facts related to sexual harassment or sexual assault disputes. They also may not prevent an employee from testifying in judicial or administrative proceedings about criminal offenses, acts of sexual harassment, discrimination, or retaliation for reporting discrimination.
Finally, employers must also consider applicable federal employee termination laws and guidelines. For example, the NLRB’s 2023 McLaren decision suggests a restriction in the use of non-disparagement and confidentiality provisions in severance agreements.
4. Reporting Employee Termination in Nevada
When separating from an employee with an Income Withholding for Support Order (“IWO”), promptly report the employee’s termination to the child support agency, court, or attorney that issued the IWO. You may register for online reporting with the Federal Office of Child Support Enforcement here.
You also may report an employee’s termination by completing the Notification of Employment Termination or Income Status section of the IWO. Then fax or mail it to the child support agency that issued it. You will need the following information:
- Employee Name
- Employee Case Identifier
- Last Known Home Address
- New Employer Address (if known)
- Date of Employee Separation
5. Withdraw Registration to do Business in Nevada
If separating from your last Nevada employee ends your business dealings in the state, you may wish to formally withdraw your business registration. This can be accomplished by filling out the necessary forms and submitting them to the Nevada Secretary of State.
The necessary form will vary, depending on your organization’s legal structure. For-Profit Corporations must file this Certificate of Dissolution/Withdrawal. Non-Profit Corporations must file this Certificate of Dissolution/Withdrawal. Finally, Limited Liability Companies (LLCs) must file this Certificate of Dissolution/Cancellation.
Stay Compliant with Nevada Employee Separation Requirements
Understanding the requirements for a Nevada Employee Separation Agreement helps employers ensure legal compliance, respect employee rights, and lessen your potential liability.
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Looking for employee separation laws for a different state? Our interactive map makes it easy to find all employee termination requirements by state.
