Nevada Establishes Conclusive Presumption For Independent Contractor Status

In Terry v. Sapphire Gentlemen's Club, 336 P.3d 951 (Nev. Oct. 30, 2014), the Nevada Supreme Court adopted the Fair Labor Standard Act (FLSA)'s "economic realities" test to determine whether workers can be classified as independent contractors under Nevada law for purposes of minimum wage payments under Nevada Revised Statutes' (NRS) Chapter 608. In an apparent move to overrule Terry, the Nevada Legislature passed Senate Bill 224 (S.B. 224). Signed into law on June 2, 2015 by Governor Brian Sandoval, S.B. 224 establishes a "conclusive presumption" that a person is an independent contractor, rather than an employee, if certain conditions are met. A "conclusive presumption" is a presumption that must be taken as true regardless of any evidence to the contrary. As a result, it is likely that more workers can properly be classified as independent contractors under NRS Chapter 608. Significantly, S.B. 224 applies to any currently ongoing dispute relating to whether a worker