Sole Proprietor: Excluded from coverage/may elect to be included - Although a sole proprietor having no employees is not required to maintain workers’ compensation insurance on himself/herself, the sole proprietor may elect to secure coverage for himself/herself. However, if there are any employees working for the sole proprietor, then the sole proprietor must maintain workers’ compensation insurance on them. In addition, sole proprietors who are contractors as defined in NRS 624.020, operating within the scope of their license, must secure coverage. Sole proprietor payroll based on 15,600 annual. Sole-proprietors licensed as subcontractors and working under the direction of principal contractor subject to NRS 616A.210 is included at $500 per month ($26,000- annual). Recap: NRS 616B.659 Deemed wage per month of $300; Elective wage per month $1,800. Be sure to contact the Nevada Department of Business and Industry to acquire current rating payrolls and instructions on how to properly use them.
Partners: Excluded from coverage/may elect to be included - Treated as sole proprietors.
Corporate Officers: Included in coverage/may elect to be exempt - Those included officers when receiving compensation will have their premium based on a payroll minimum of $6,000 per policy year and a maximum pay of $36,000 per policy year. Non-compensation Officers apply a minimum of $500 per month with a maximum of $36,000 per year. Be sure to contact the Nevada Department of Business and Industry to acquire current rating payrolls and instructions on how to properly use them.
LLC Members: Treated same as corporation. Included/may elect to be exempt - minimum pay of $6,000 per policy year and a maximum pay of $36,000 per policy year. Be sure to contact the Nevada Department of Business and Industry to acquire current rating payrolls and instructions on how to properly use them.
A Note About Forms: Be sure to contact your insurance company for information about additional forms they may use for exclusion or inclusion of coverage.
Contractors: Nevada law requires a person to provide workers’ compensation coverage for employees but also subcontractors, independent contractors and their employees. Such contractors are deemed to be employees
of the prime contractor unless the subcontractor is an “independent enterprise.” To pass the “independent enterprise” test, the subcontractor must hold self out as a separate business by having a separate business or occupational license or by owning or renting property used in the business. In addition to being a separate business, the work being performed must be the type of work normally done by an independent contractor rather than by employees.
Some employers that have been prosecuted by the State of Nevada believe the requirement to provide workers’ compensation
can be avoided just by labeling the employees as independent contractors or by entering into a written contract with the employee. But labels alone are not successful in avoiding criminal charges. One example of the common type of dubious claims made involves a Las Vegas trucking company. A driver was asked to sign an independent contractor agreement. The driver, however, worked regular shifts, drove the company truck and was told what routes to take. The driver was not responsible for the costs associated with the operation of the truck. Therefore, this driver was an employee and his employer was prosecuted despite his belief he was using an independent contractor.
The amount of control the employer exercises over “how” the job is performed is more important than what one tries to call the legal relationship. An employer controls how an employee performs the job. With an independent contractor, the employer only controls the actual result of the job. Also, even if he or she is an independent contractor, an employer still may have responsibility to provide workers’ compensation
coverage because the contractor is not considered an “independent enterprise.” Contractors on construction projects need to be particularly careful. The “independent enterprise” exception does not apply to construction projects. There are no exceptions when the work being performed
requires a contractor’s license. Prime contractors must ensure subcontractors have and maintain coverage because the prime contractor is always responsible for injuries to employees of independent subcontractors on construction projects.
Special Notes: Some employees are excluded from workers compensation coverage by NRS 616A.110 due to unique criteria. 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.
CONSTRUCTION TRADES ARE REQUIRED TO HAVE WORKERS’
Experience Rating Eligibility: Nevada employers will receive an experience modification rate or EMR when they meet one of these triggers:
$6,000 in policy premium is generated during the last year or last two years.
$3,000 is the average policy premium generated for more than two years.
Nevada Workers Compensation Subrogation: Nevada state statute 616C.215 is about workers compensation subrogation in this state. NRS 616C.215 is titled "Actions and proceedings to recover damages in tort or from proceeds of vehicle insurance: Reduction of compensation by amount of recovery; rights of injured employee or dependents and of insurer or Administrator; notification and payment of insurer or Administrator; instructions to jury; calculation of employer’s premium." This section is rather long and somewhat complicated but it is here you will find information about subrogation. We've provided a direct link to this code for your use below. Just click the link and you can view the statute.
Nevada Workers Working In Other States; Other States Workers Working In Nevada, Extraterritorial, Reciprocity and Non-Compliance: When Nevada workers are working temporarily in another state, workers compensation coverage for that worker is then governed by the extraterritorial provisions found in Nevada statutes. When or if allowed it's extraterritorial provisions that allow benefits for an injured worker to apply as if the worker was in their primary state. Not all states provide Extraterritorial Provisions. It's reciprocity that governs how Nevada workers compensation coverage responds for a worker from another state who is working temporarily in Nebraska. You'll find that in Nevada all construction projects will require specific Nevada coverage and subcontractor and indendent contractors are provided with employee status without exception. Certificates of compliance are required to be filed with the Department of Business and Industry. Compliance of workers compensation laws varies from state to state and it is important for an employer with workers performing duties in other states to be aware of the specific state rules that govern their coverage. We've provided the below general information about extraterritorial and reciprocity as a basic guide. Please contact your state authority with your specific questions concerning this topic!
Workers Compensation Statute: A link to current Nevada Law and Statutes can be found on the Division of Industrial Relations website, menu bar on left side of the home page, at the bottom, labeled "Nevada Law".
Didn't find what you're looking for? Search here for more about Nevada rules:
Information on this page is provided only as a reference. While we strive to mantain accurate information on this site please realize workers compensation laws are complicated and subject to change at any time. No warranty as to the accuracy or completeness of this information is provided or to be implied. You must verify this data before use with the individual governing authority for this state. If you need help with a workers compensation problem or have a specific situation or question please contact our office. Otherwise please consult your states governing authority or an attorney in your state of residency for assistance.