Nevada’s lowest wage workers will see larger paychecks now that the state’s minimum wage increased Saturday.

The bump to about $11.25 an hour is mandated by legislation approved in 2019, which dictated that the state’s minimum wage would rise in 75-cent increments until July 2024. That law includes a two-tier system that offered a lower minimum hourly wage — $10.25 this year — to employees with qualifying health benefits.

The increase comes at a time of continued wage inflation. The Las Vegas Review-Journal reported that many of the typical minimum wage jobs are paying several dollars more because of the intense competition for workers since the pandemic’s lockdowns were lifted.

"If you drive by a fast food restaurant they’re offering sometimes $15 to $20 (starting wages)," said Tray Abney, Nevada state director for the National Federation of Independent Businesses. "The market has driven that. They have to offer that to anyone to get them to work for them."

The minimum wage will jump again in July 2024 — to $12 an hour — under a constitutional amendment that was approved by voters last November.

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Some business groups are concerned about the possibility of further hikes in 2025 and beyond.

The constitutional amendment allows the Nevada Legislature to pass laws setting higher rates than the constitutionally mandated minimum. And any change to the federal minimum wage — currently set at $7.25 per hour — would also cause the state’s minimum wage to rise.

If businesses have to drive up wages, they may turn to offering fewer benefits or hiring fewer employees to cover the costs, Abney said.

Others say they're less concerned with the rate increase.

Paul Saginaw, owner of Saginaw’s Delicatessen in Circa Resort, said he’s found that when wages went up, labor costs were kept in check or lowered because they had less turnover, resulting in more experienced staff with better productivity.

"(The) biggest struggle is the cost of goods, not wages," he said.