Nevada

Buying workers’ compensation for:

Nevada

State Fund: Since January 1, 2000, Nevada no longer provides workers’ compensation through a State fund.

Insurance Coverage Requirements: Workers’ Compensation is compulsory in Nevada, waivers are not permitted.

Who is Required to Purchase Workers’ Compensation Coverage?

Every person, firm, voluntary association and private corporation, including any public service corporation, which has in service any person under a contract of hire” needs coverage unless excluded by statute.

CONSTRUCTION TRADES ARE REQUIRED TO HAVE WORKERS’ COMPENSATION INSURANCE.

Employment exempt from workers’ compensation insurance coverage requirements includes:

  • Employment related to those interstate commerce entities that are not subject to the legislative power of the state of Nevada.
  • Employment covered by private disability and death benefit plans which comprehend compensation payments of equal or greater amounts than those provided in NRS 616 and which have been in effect for one year prior to July 1, 1947;
  • Employees who are brought into Nevada on a temporary basis and who are insured in another state if extraterritorial coverage provisions are in effect with the other state. Exception: the construction trades.
  • Casual employment (employment lasting not more than 20 days and having a total labor cost of less than $500) is exempt if employment is not in the course of trade, business, profession or occupation of the employer.

Employee” excludes:

  1. Any person whose employment is both casual and not in the course of the trade, business, profession or occupation of his employer.
  2. Any person engaged as a theatrical or stage performer or in an exhibition.
  3. Musicians when their services are merely casual in nature and not lasting more than 2 consecutive days, and not recurring for the same employer, as in wedding receptions, private parties and similar miscellaneous engagements.
  4. Any person engaged in household domestic service, farm, dairy, agricultural or horticultural labor, or in stock or poultry raising, except as otherwise provided in chapters 616A to 616D, inclusive, of NRS.
  5. Any person performing services as a voluntary ski patrolman who receives no compensation for his services other than meals, lodging, or use of the ski tow or lift facilities.
  6. Any clergyman, rabbi or lay reader in the service of a church, or any person occupying a similar position with respect to any other religion.
  7. Any real estate broker, broker-salesman or salesman licensed pursuant to chapter 645 of NRS.
  8. Any person who:
    (a) Directly sells or solicits the sale of products, in person or by telephone:
    (1) On the basis of a deposit, commission, purchase for resale or similar arrangement specified by the administrator by regulation, if the products are to be resold to another person in his home or place other than a retail store; or
    (2) To another person from his home or place other than a retail store;
    (b) Receives compensation or remuneration based on sales to customers rather than for the number of hours that he works; and
    (c) Performs pursuant to a written agreement with the person for whom the services are performed which provides that he is not an employee for the purposes of this chapter.
  9. Any person who performs services as a sports official for a nominal fee at a sporting event that is amateur, intercollegiate or interscholastic and is sponsored by a public agency, public entity or private, nonprofit organization. As used in this subsection, “sports official” includes an umpire, referee, judge, scorekeeper, timekeeper or other person who is a neutral participant in a sporting event.
    If the employer is a licensed contractor as defined by NRS 624 they may be determined – as a matter of law –to be the employer of independent contractors, subcontractors and their employees for purposes of providing industrial insurance coverage.

Officers

There are instances where an officer or manager of a “quasi-public or private corporation or limited liability company” that requires insurance can reject coverage by the company’s workers’ compensation insurer. These instances are covered in NRS 616B.624 and the rejection must be in writing to the company and the insurer, and the rejection may later be rescinded in writing.

Factors that Impact Coverage

  • You are a sole proprietor or partner: In Nevada, you are excluded from coverage but you may include yourself in coverage.
  • You are a contractor: If you are a sole proprietor licensed as a contractor or subcontractor, you must find coverage.
  • You are a corporate officer or member of an LLC: Nevada includes you in coverage, but you have the option to exclude yourself.

Failure to Secure Compensation

Business owners failing to comply with this law face fines up to $15,000, may have their business ordered closed until the insurance has been obtained and be held financially responsible for all costs associated with an employee who sustains a work related injury. In addition, the uninsured business owner may be subject to civil litigation brought about by an injured employee. In addition, the uninsured employer may be subject to a criminal penalty for claims resulting in substantial bodily harm or death. (NRS 616D.200 & NAC 616D.345)

Proof of Coverage is Required

  1. Each employer shall prominently display at his place of business a poster with the language and in the format specified in Form D-1
  2. The title of the poster must be printed in not less than 20-point bold type. The required statement concerning questions and problems relating to claims must be printed in not less than 12-point bold type. The text appearing on the remainder of the poster must be printed in not less than 10-point type. The poster shall be at least 11 inches by 17 inches in size.
  3. Each self-insured employer shall:
    (a) Display the poster as required by this section; and
    (b) Advise his employees of the name, address and telephone number of the administrator for their claims for workers’ compensation.
  4. The poster must be displayed in such a manner as to be readily visible by all employees. A poster must not be displayed unless:
    (a) It has been issued or approved by the Workers’ Compensation Section (WCS); or
    (b) If it has not been issued by the Workers’ Compensation Section (WCS) or bears the Workers’ Compensation Section’s (WCS) indication of approval.
    Poster to be displayed by employers with employees who receive tips
  5. Each employer who has employees who receive tips shall prominently display a poster with the language and in the format specified in Form D-22
  6. The poster must be at least 8 1/2 inches by 11 inches in size and posted in such a manner as to be readily visible to all employees.

Independent Contractors

Mistakenly classifying an employee as an independent contractor can result in significant fines and penalties.

View 20 factors used by the IRS and our independent contractor questionnaire to determine whether you have enough control over a worker to be an employer.

Key Resources

Other Tips

If your insured employs workers in multiple states or your insured’s employees are temporarily working out-of-state, they need to purchase insurance for all the states where their workers are located, according to each state’s laws. Call 1-800-476-2948 and let us walk you through it.

The nature of your insured’s business, number of employees being covered and past coverage and claims are all factors in how much their premium will cost.