An employer can choose to do so, yes. There is no law in Nevada saying that they can not dispose of sick leave in this way.
In fact, legally they could just take the hours away.
Nevada really has no law at all protecting this sort of benefit.
I had worked for a major corporation and they informed us that they could NOT pay out sick time, as they would be paying employers more that 52 weeks of pay...
They may have simply told you that because they didn't want to.
Legally, there is nothing stopping them from doing that.
Nevada law simply does not dictate how sick leave or vacation pay is handled.
Some states do have laws, like California and Nebraska....but not your state.
Is there a leagl reference that details that an employer CAN pay off the sick pay at the end of the year?
No, there is not.
See, these types of laws, when they exist, are restrictive.
What that means is that if the law doesn't restrict them, they can do what they want to do, usually by creating a company policy.
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