Does Nevada require workers’ compensation insurance?
Yes. Nevada requires workers' compensation from the first employee: under NRS 616B.633 the Industrial Insurance Act is compulsory for any employer with anyone in service under a contract of hire, with no head-count floor. A sole proprietor with no employees does not have to cover themselves but may elect in, and a paid corporate officer or LLC manager is covered unless they reject coverage in writing with the insurer.
Updated . Written by Andre Beukers, principal at Redoubt, a commercial insurance agency in Salt Lake City, not a government office.
How many employees before Nevada requires workers' comp?
Nevada has no minimum head count. NRS 616B.633 makes the Act binding on every employer that has any employee in service under a contract of hire, and NRS 616A.230 defines an employer as every person, firm, association, or private corporation with anyone in service under a contract of hire. NRS 616A.110 leaves out a short list of workers: casual labor outside the employer's trade, household domestic service, farm, dairy, and livestock labor, licensed real estate agents, clergy, and a few others. An employer can still elect to cover them under NRS 616B.656.
Source: NRS 616B.633, checked .
Which owners, officers, and family members are exempt in Nevada?
A sole proprietor, which NRS 616A.310 defines to include working partners, is not covered unless they file a written election with the Division's Administrator and a private carrier under NRS 616B.659. Corporate officers and LLC managers are covered once the business must insure, at deemed pay of $6,000 to $36,000 a policy year under NRS 616B.624. An unpaid officer or manager, or one who owns the company and draws pay, can reject coverage by written notice to the insurer; an unpaid one also notifies the company.
The Workers' Compensation Section's employer FAQ says family members on the job must be insured. An owner-only corporation or LLC should confirm its status with the Section before affirming it is not subject to the Act.
Source: NRS 616B.624, checked .
What happens to a Nevada employer with no workers' comp?
Under NRS 616D.200 the Administrator can charge an uninsured employer the premiums it would have paid a private carrier, at the Commissioner's manual rates, for up to six years, plus interest. A first offense is a misdemeanor. It is a category C felony, with one to five years in prison and a $1,000 to $50,000 fine, if an employee suffers substantial bodily harm or dies while the business is uninsured, or on a second offense within seven years. Under NRS 616D.110 the Administrator can also order all operations at the workplace or jobsite to stop until coverage is in place.
On top of the premium charge, when the Attorney General's fraud unit does not prosecute, NAC 616D.345 sets administrative fines by how long coverage lapsed: up to $1,000 for 90 days or less, up to $5,000 for 91 days to a year, and up to $15,000 beyond a year. An injured worker can also sue an uninsured employer directly under NRS 616B.636, and the employer loses the usual defenses.
Source: NRS 616D.200, checked .
Who enforces workers' comp in Nevada?
The Workers' Compensation Section of the Nevada Division of Industrial Relations enforces the mandate through its Employer Compliance Unit, and the Division's Administrator issues the charges, fines, and stop orders above. The Nevada Division of Insurance authorizes carriers and certifies self-insurers; it does not enforce the employer requirement.
Source: Nevada DIR, Workers' Compensation Section, checked .
Where do Nevada employers buy coverage?
Nevada is a private-market state with no state fund. An employer buys from a private carrier (NRS 616B.460), is certified by the Commissioner of Insurance to self-insure, or joins an association of self-insured employers. No insurer has to write any particular employer, but under NRS 686B.1771 every insurer takes part in a plan, approved by the Commissioner, that apportions employers entitled to insurance whom no insurer has accepted.
Source: NRS 686B.1771, checked .
Who sets the class codes and rates in Nevada?
Nevada is an NCCI state. Under NRS 686B.1772 every insurer follows the classification system and experience rating plan filed by the Commissioner's designated Advisory Organization, and NCCI publishes Nevada's advisory filing each year. Class codes and experience mods come from NCCI; a carrier's own subclassifications must be filed with the Commissioner of Insurance 60 days ahead.
Source: NCCI, State Advisory Resources: Nevada, checked .
Is there an exemption or waiver form in Nevada?
Nevada issues no exemption certificate. Instead, a business applying for a county business license signs an affidavit, or attests online, that it has private coverage, is self-insured, or is not subject to the Act (NRS 244.33505; cities follow NRS 268.0955). The Section's Workers' Compensation Affirmation of Compliance counts a business with no employees that hires no independent contractors or subcontractors as not subject.
Officer and manager rejections go to the insurer (NRS 616B.624), not the state. A sole proprietor on a state or local government contract who uses no employees on it can give the agency an affidavit instead of a carrier certificate (NRS 616B.627). None of these covers anyone else; the day the business hires, it needs a policy.
Source: NRS 244.33505, checked .
Sorting out Nevada workers' comp for your business
Tell Redoubt what the business does, who works in it, and what the Nevada requirement in front of you says. We will say whether a policy, a waiver, or an exclusion fits.
This is general insurance information, not legal advice or a coverage determination. Statutes, agency instructions, policy forms, and the facts of the business control.
Workers’ comp requirements in every state
Each state page gives the employee threshold, the owner and officer exemptions, the penalty for going without, the rating bureau, the market, the enforcing agency, and the exemption filing, each with its statute or agency source.
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The hub, and the Nevada pages that go deeper
Nevada workers’ comp FAQ
Do I need workers' comp in Nevada for one part-time employee?+
Yes. NRS 616B.633 applies to any employer with an employee under a contract of hire and sets no hours or head-count minimum. The Workers' Compensation Section's employer FAQ adds that there is no waiting period: employees are covered from the moment they are hired.
Does a Nevada sole proprietor with no employees need workers' comp?+
Not on themselves, though NRS 616B.659 lets them elect in, treated as earning $300 a month for benefits, or $1,800 with extra premium. A licensed contractor should check with the Workers' Compensation Section first; its employer FAQ says contractors working within their license must secure coverage.
Are my 1099 subcontractors my employees for Nevada workers' comp?+
Often, yes. NRS 616A.210 deems subcontractors, independent contractors, and their employees to be employees of the principal contractor. The independent-enterprise exception in NRS 616B.603, for a licensed business in a different trade, does not apply to a principal contractor licensed under NRS Chapter 624, so collect every sub's certificate.
Can a Nevada LLC owner opt out of workers' comp?+
For themselves, yes: under NRS 616B.624 an owner-manager who draws pay rejects coverage by written notice to the insurer, effective when the insurer receives it. The rejection does not reach any employee.