“Holiday” in NRS 286.025 and NRS 288.150 Includes Negotiated Holidays: PERS Must Collect Retirement Contributions on CBA-Defined Holiday Pay; Juneteenth Recognized in Nevada as of June 17, 2021

“Holiday” in NRS 286.025 and NRS 288.150 Includes Negotiated Holidays: PERS Must Collect Retirement Contributions on CBA-Defined Holiday Pay; Juneteenth Recognized in Nevada as of June 17, 2021

Introduction

In Public Employees’ Retirement System of Nevada v. Las Vegas Police Managers and Supervisors Association; and Las Vegas Peace Officers Association, 141 Nev., Adv. Op. 55 (Nov. 13, 2025) (en banc), the Nevada Supreme Court affirmed a district court’s summary judgment ordering the Public Employees’ Retirement System (PERS) to collect employer retirement contributions on premium pay earned for holidays that were negotiated in collective bargaining agreements (CBAs), even when those holidays are not listed as “legal holidays” in NRS 236.015. The decision also holds that Juneteenth became a Nevada legal holiday in 2021 by operation of NRS 236.015(1)’s “appointed by the President” clause once Congress created the federal holiday and the President proclaimed it.

The dispute arose after the Las Vegas Police Managers and Supervisors Association and the Las Vegas Peace Officers Association (collectively, the Associations) negotiated additional paid holidays—Christmas Eve, New Year’s Eve, and Juneteenth—with the Las Vegas Metropolitan Police Department and the City of Las Vegas. PERS refused to collect retirement contributions on the negotiated holiday premium pay for Christmas Eve and New Year’s Eve (not in the statutory list) and, initially, Juneteenth (disputing its status as a Nevada legal holiday before 2023). The district court sided with the Associations; PERS appealed.

The en banc Court, per Justice Bell, grounds its holding in the plain text of NRS 286.025 and NRS 288.150, the Legislature’s selective use of “holiday” versus “legal holiday,” and the harmonization of collective bargaining rights with PERS’s constitutional governance authority. The Court also withdraws its prior panel decision (140 Nev., Adv. Op. 80, 561 P.3d 29 (2024)) and replaces it with this opinion after granting en banc reconsideration under NRAP 40A(a).

Summary of the Opinion

  • Juneteenth is a Nevada legal holiday as of June 17, 2021. By virtue of NRS 236.015(1), which recognizes “any day that may be appointed by the President of the United States … as a legal holiday,” Nevada adopted Juneteenth when Congress added it to 5 U.S.C. § 6103(a) and the President signed the Juneteenth National Independence Day Act on June 17, 2021, followed by a proclamation. PERS’s own Official Policy 1.19 keys holiday pay to NRS 236.015; thus PERS must collect contributions on Juneteenth holiday pay. The Court affirms retroactive collection to 2022 (the CBA year at issue).
  • “Holiday” in NRS 286.025 and NRS 288.150 is not limited to “legal holidays.” The statutes governing compensation for PERS (NRS 286.025(2)(b)(1)) and mandatory subjects of bargaining (NRS 288.150(2)(d)) use the unmodified term “holiday,” while a separate provision (NRS 286.460(3)) specifically references “legal holiday[s]” for remittance deadlines. The Legislature’s choice signals different meanings. Therefore, PERS must collect contributions on premium pay earned for CBA-bargained holidays like Christmas Eve and New Year’s Eve, irrespective of whether PERS was a party to the CBAs.
  • PERS’s policy cannot override the statutes. Although PERS governs the system (Nev. Const. art. 9, § 2(4)), its Official Policy 1.19 defining holiday pay by reference to NRS 236.015 cannot negate NRS 286.025’s broader inclusion of “work performed on a holiday” as part of “compensation.” Agencies may not adopt policies that conflict with statutory text.
  • CBAs do not violate the Internal Revenue Code’s “definitely determinable” benefits rule. The CBA’s holiday pay provisions articulate a stipulated, non-discretionary formula, satisfying Rev. Rul. 74-385 and the IRS “Issue Snapshot—Definitely Determinable Benefits.” There is no federal tax impediment to including such holiday premium pay in compensation.

Disposition: Affirmed. The Court orders PERS to collect employer contributions on Juneteenth (retroactive to 2022) and on CBA-bargained holiday pay for Christmas Eve and New Year’s Eve.

Dissent: Justice Stiglich (joined by Justice Pickering) would reverse, emphasizing PERS’s constitutional governance and actuarial integrity, defending Policy 1.19, warning of inequities across pooled funds, and analogizing to cases from other states that narrowly construe pensionable “salary.”

Detailed Analysis

Precedents and Authorities Cited

  • Statutory interpretation and summary judgment: Wood v. Safeway, Inc., 121 Nev. 724, 121 P.3d 1026 (2005) (de novo review; summary judgment standards); City of Henderson v. Wolfgram, 137 Nev. 755, 501 P.3d 422 (2021) (de novo review of statutory interpretation).
  • Canons of construction and legislative drafting choices: Loughrin v. United States, 573 U.S. 351 (2014), and Russello v. United States, 464 U.S. 16 (1983) (when the Legislature uses different words in different provisions, courts presume a difference in meaning); Clouer Valley Land & Stock Co. v. Lamb, 43 Nev. 375, 187 P. 723 (1920) (attention to different terms in a statute); Adkins v. Union Pac. R.R. Co., 140 Nev., Adv. Op. 48, 554 P.3d 212 (2024); Platte River Ins. Co. v. Jackson, 137 Nev. 773, 500 P.3d 1257 (2021).
  • Agency authority and harmonization: Nev. Const. art. 9, § 2(4) (PERS must be governed by a board); City of Sparks v. Sparks Mun. Ct., 129 Nev. 348, 302 P.3d 1118 (2013) (harmonizing overlapping constitutional powers); We the People Nev. ex rel. Angle v. Miller, 124 Nev. 874, 192 P.3d 1166 (2008) (harmonize statutes and constitutional provisions).
  • PERS’s statutory obligations: State, Dep’t of Transp. v. Pub. Emps.’ Ret. Sys. of Nev., 120 Nev. 19, 83 P.3d 815 (2004) (PERS must manage the system according to statutes); Pub. Emps.’ Ret. Sys. of Nev. v. Gitter, 133 Nev. 126, 393 P.3d 673 (2017) (PERS’s obligations are statutory, not contractual).
  • Legal holiday recognition and federal-state interplay: NRS 236.015(1) (Nevada legal holidays, including those “appointed by the President … as a legal holiday”); Cal. Sch. Emps. Ass’n v. Governing Bd., 878 P.2d 1321 (Cal. 1994) (interpreting similar “appointed by the President” language to require corresponding federal holiday and clear intent); Juneteenth National Independence Day Act, Pub. L. No. 117-17, 135 Stat. 287 (2021) (amending 5 U.S.C. § 6103(a)); Presidential Proclamation No. 10229 (June 18, 2021).
  • IRS “definitely determinable benefits” doctrine: Rev. Rul. 74-385, 1974-2 C.B. 130 (benefits must be computed per stipulated formula, not subject to employer discretion); IRS Issue Snapshot—Definitely Determinable Benefits (Sept. 18, 2025).
  • Dissent’s additional authorities: O’Hara v. State ex rel. Pub. Emps. Ret. Bd., 104 Nev. 642, 764 P.2d 489 (1988) (actuarial integrity requires strict enforcement); Out-of-state cases narrowly defining pensionable “salary”: Hay v. City of Highland Park, 351 N.W.2d 622 (Mich. Ct. App. 1984); Village of Hanover Park v. Board of Trustees, 184 N.E.3d 413 (Ill. App. Ct. 2021); State ex rel. City of Manitowoc v. Police Pension Bd., 203 N.W.2d 74 (Wis. 1973).

Legal Reasoning

The Court proceeds from a textualist reading of the relevant statutes and harmonizes them to avoid rendering any term superfluous.

  • “Holiday” vs. “legal holiday” in Nevada’s statutory scheme. NRS 286.025(2)(b)(1) defines “compensation” to include pay for “work performed on a holiday” (so long as the hours do not exceed the normal workweek or pay period), without modifying “holiday” as “legal.” Likewise, NRS 288.150(2)(d) lists “holidays” as a mandatory subject of bargaining, again unmodified. By contrast, NRS 286.460(3) expressly uses “legal holiday” in extending employer remittance deadlines. Applying the Russello/Loughrin canon, the Legislature’s choice to insert “legal” in some sections but not others is intentional and must be given effect. Therefore, “holiday” in NRS 286.025 and NRS 288.150 is broader than “legal holiday” and includes CBA-designated holidays such as Christmas Eve and New Year’s Eve.
  • PERS policy cannot contract the statute. PERS’s Official Policy 1.19 ties “holiday pay” to “official holiday[s] as defined by NRS 236.015,” but NRS 286.025 does not cabin holiday pay that way. Agencies may not adopt rules contradicting statutory definitions. The Court underscores that PERS’s proper role is to administer contributions based on what the statutes deem “compensation,” not to redefine compensation by internal policy.
  • Juneteenth’s legal holiday status in Nevada as of 2021. NRS 236.015(1) recognizes days “appointed by the President … as a legal holiday.” The California Supreme Court’s interpretation is persuasive: presidential “appointment” presupposes a corresponding federal legal holiday and language evincing intent to designate a national holiday. Congress created the federal holiday; the President signed the Act and issued a proclamation, satisfying both prongs. Nevada’s later 2023 enactment aligning Friday/Monday observations merely expanded recognition logistics; it did not postpone Juneteenth’s status as a Nevada legal holiday after June 17, 2021. PERS’s reliance on Columbus Day is inapposite because the Legislature expressly reclassified it as commemorative in 1989 (NRS 236.025).
  • PERS’s constitutional governance harmonized with bargaining statutes. While PERS “must be governed by” its Board (Nev. Const. art. 9, § 2(4)), that governance is bounded by statute. Nevada law grants employee organizations the right to bargain over holidays and direct monetary compensation (NRS 288.150(2)(a), (d)), and defines which payments count as “compensation” for PERS purposes (NRS 286.025). The Court harmonizes these provisions, holding PERS must collect contributions when employees earn CBA-defined holiday premium pay that falls within NRS 286.025(2)(b)(1). The Board’s managerial authority cannot negate that statutory command.
  • Not being a party to the CBAs is irrelevant. PERS argued it is not bound by agreements it did not sign. The Court rejects that position: PERS’s duty is to administer the system “according to the statutes,” and where statutes make certain CBA-negotiated pay pensionable, PERS must implement that result regardless of its participation in bargaining. This is consistent with State DOT v. PERS (2004) and Gitter (2017).
  • IRS “definitely determinable benefits” satisfied. The CBAs set a specific, non-discretionary formula for holiday pay (Article 12, Section 1), which, when fed into PERS’s statutory benefit formula (NRS 286.551), yields benefits that are “definitely determinable” under Rev. Rul. 74-385. Because the formula is stipulated and not subject to unilateral employer discretion during the agreement’s term, there is no qualification concern.

The Dissent’s View

Justice Stiglich (joined by Justice Pickering) emphasizes PERS’s constitutional mandate to govern and the actuarial nature of funding. In the dissent’s view:

  • PERS acted within its authority adopting Policy 1.19, anchoring “holiday pay” to NRS 236.015’s legal holidays; the Court should not allow CBAs to displace the Board’s actuarial and administrative judgments.
  • Allowing some groups to negotiate additional pensionable pay while members contribute at a uniform actuarial rate produces cross-subsidization, undermining equity and fiscal prudence.
  • Other states narrowly construe “salary” for pension purposes to exclude certain negotiated extras; Nevada should analogously resist expansive readings that destabilize actuarial assumptions.

Impact and Practical Implications

  • Immediate policy revision at PERS. Official Policy 1.19 must be conformed to the opinion. Holiday pay that qualifies as “work performed on a holiday” under NRS 286.025(2)(b)(1) is pensionable even if the holiday is CBA-created and not in NRS 236.015. For Juneteenth, PERS must treat it as a Nevada legal holiday effective June 17, 2021, consistent with Policy 1.19’s own reference to NRS 236.015.
  • Statewide bargaining leverage. Public employee organizations may negotiate additional holidays with confidence that premium pay for work performed on those days can be included in PERS compensation (subject to the statutory “no more than normal workweek/pay period” qualifier). This is likely to become a recurring bargaining item across Nevada CBAs.
  • Payroll systems and reporting. Employers must configure payroll and PERS reporting to:
    • Identify CBA-defined holidays (including non-statutory ones);
    • Differentiate premium pay for work performed on holidays within normal hours (pensionable) vs. overtime (> normal hours, non-pensionable);
    • Accurately remit employer contributions and report compensation consistent with this opinion.
  • Actuarial considerations. The dissent’s equity concerns may prompt PERS to:
    • Revisit actuarial assumptions and contribution rates to account for the broader base of pensionable compensation arising from CBA-defined holidays;
    • Consider whether separate experience studies or rate adjustments are warranted for employers or tiers with materially different holiday practices (subject to statutory authority and uniformity constraints).
  • Retroactivity and lookback. The Court affirms retroactive collection for Juneteenth back to 2022 (the contract year presented). While the opinion does not set a general retroactivity rule, employers and PERS should evaluate open periods for correction consistent with applicable limitation periods and administrative procedures.
  • Clarified statutory interplay. The Legislature’s selective use of “legal holiday” in NRS 286.460 (remittance deadlines) versus “holiday” in NRS 286.025 (compensation) and NRS 288.150 (bargaining subjects) is now judicially cemented. This textual distinction will likely influence future disputes wherever the statutes use different modifiers.
  • Juneteenth settled statewide. Even before Nevada’s 2023 observation-alignment statute, Juneteenth was a Nevada legal holiday as of June 17, 2021, by operation of NRS 236.015(1) after Congress created the federal holiday and the President proclaimed it. PERS must recognize it accordingly.
  • Constraints remain. The Court is careful to note that CBAs cannot expand pensionable compensation beyond what NRS 286.025 permits (e.g., they cannot make “overtime” pensionable). The holding is tailored to “work performed on a holiday” within normal hours—the precise category the statute names.

Complex Concepts Simplified

  • Holiday vs. legal holiday: A “legal holiday” is one recognized by statute (NRS 236.015). A “holiday” for PERS compensation purposes (NRS 286.025) is broader: it includes any day the parties designate as a holiday in a CBA. If you work your normal hours on that day and receive premium pay, that premium is pensionable.
  • “Work performed on a holiday … not exceed[ing]” normal hours: Only the premium associated with normal-hour work on a holiday counts toward PERS compensation. Overtime hours remain excluded from “compensation.”
  • Agency policy vs. statute: PERS can make policies to run the system, but it cannot use policy to narrow or redefine the Legislature’s statutory definition of “compensation.” Where policy and statute conflict, the statute controls.
  • IRS “definitely determinable benefits” rule: Pension benefits must come from a fixed formula, not ad hoc employer choices. A CBA that sets an objective holiday pay formula satisfies this rule; therefore, including that pay in pensionable compensation does not risk tax qualification.
  • How Juneteenth became a Nevada holiday in 2021: Nevada law automatically treats as state legal holidays those days the President appoints as legal holidays, but only in tandem with a corresponding federal holiday created by Congress and a presidential act showing intent. Congress created Juneteenth as a federal holiday on June 17, 2021; the President signed and proclaimed it, so Nevada recognized it then. Nevada’s 2023 statute merely clarified Friday/Monday observation rules.

Conclusion

This en banc decision establishes two important rules for Nevada public employment and pensions:

  1. The unmodified term “holiday” in NRS 286.025 (PERS compensation) and NRS 288.150 (mandatory bargaining topics) includes holidays negotiated in CBAs, even if those days are not “legal holidays” under NRS 236.015. PERS must collect employer contributions on premium pay earned for work performed on such holidays within normal hours.
  2. Juneteenth has been a Nevada legal holiday since June 17, 2021, under NRS 236.015(1) once the federal holiday was created and the President proclaimed it; PERS must recognize it for contribution purposes, consistent with its own policy.

The Court’s textual approach clarifies the boundaries of PERS’s administrative discretion and harmonizes the governance of Nevada’s retirement system with the statutory rights of public employees to bargain over holidays and compensation. While the dissent flags legitimate actuarial and equity concerns, the majority places the responsibility for addressing those macro-level funding questions on PERS’s ongoing actuarial work and, if necessary, legislative action, rather than on judicially narrowing the Legislature’s chosen definitions.

Going forward, public employers, bargaining units, and PERS should adjust policies, payroll systems, and actuarial assumptions to reflect that negotiated holiday premium pay is pensionable under NRS 286.025, and that Juneteenth has been a Nevada legal holiday since 2021.

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