The workers' compensation and employers liability policy and the general principles of no-fault benefits and exclusive remedy are covered in the national Workers' Compensation guide. This guide covers Nevada's industrial insurance law (NRS chapters 616A to 616D and 617): who must be covered, how employers insure, the penalties for going without coverage and the premium rules, including a payroll cap change effective October 1, 2026.

How Nevada employers insure

Nevada is not a monopolistic state. The law recognizes three kinds of insurers (NRS 616A.270, .290):

• Private carriers authorized to write industrial insurance.
• Self-insured employers, certified by the Commissioner of Insurance.
• Associations of self-insured employers: nonprofit associations of five or more private employers, or public employers.

Self-insurance requires tangible net worth of at least $2,500,000 (certified by a CPA) until three years of successful operation, a deposit of at least 105% of expected annual claims cost (and not less than $100,000), excess insurance above a retention of at least $100,000, a Nevada business license and a qualified Nevada administrator (NRS 616B.300; NAC 616B.424).

Residual market. No insurer must accept a particular employer, but every insurer takes part in a Commissioner-approved plan that apportions employers who can't get coverage voluntarily (NRS 686B.1771).

The Administrator of the Division of Industrial Relations (Department of Business and Industry) enforces coverage requirements (NRS 616A.040, .100).

Who is covered

• If an employer has any employee under a contract of hire, the law is compulsory for both employer and employee (NRS 616B.633).
• Employees include everyone working under a contract of hire, lawfully or not, including minors and aliens (NRS 616A.105).
• Excluded (NRS 616A.110): licensed real estate brokers and salespeople, clergy, household domestic and farm labor (with exceptions), casual employees, and certain direct sellers and volunteers. Casual work is work expected to take 20 working days or less in a calendar quarter, with total labor cost under $500 (NRS 616A.075).
• Sole proprietors may elect coverage by notice to the Administrator and a private carrier. They're deemed to earn $300 a month, or $1,800 a month if they pay extra premium at least 90 days before an injury (NRS 616B.659).
• Contractors show a certificate of coverage. A sole proprietor with no employees may file an affidavit instead (NRS 616B.627).

Coverage and exclusive remedy

• Employers must provide compensation for injuries by accident arising out of and in the course of employment (NRS 616B.612). Paid travel counts as in the course of employment.
• Workers' compensation rights are exclusive of all other remedies against the employer (NRS 616A.020).

Penalties for not insuring

• Uninsured employer: an injured employee may sue at law. The employer loses the defenses of assumption of risk, fellow-servant negligence and contributory negligence, and its negligence is presumed (NRS 616B.636).
• Criminal penalty: a first offense is a misdemeanor, but a category C felony if an employee suffers substantial bodily harm or death while the employer is uninsured, or for a repeat offense within seven years (NRS 616D.200).
• The employer is charged the premium it should have paid (up to six years, plus interest), which goes to the Uninsured Employers' Claim Account (NRS 616D.200).
• A hearing on a stop order is held 5 to 15 days after the order (NRS 616D.110).

Premiums and payroll

• Employers must report true payroll, including reported tips. Failing to do so is treated as a rejection of the law (NRS 616B.224).
• Payroll cap (effective October 1, 2026): the maximum pay counted per employee is $36,000 for state and local government employees, and for other employees 12 times the maximum average monthly wage the Administrator sets each January 1 (NRS 616B.222).
• Misstating payroll or misclassifying employees to cut premium is a gross misdemeanor, and the employer is charged the premium that should have been paid (NRS 616D.220).
• The experience rating plan must give loss-prevention incentives and is the exclusive way to adjust an individual employer's future premium for its loss experience (NRS 686B.1769).

Fraud by claimants

Knowingly making a false statement or hiding a material fact to obtain benefits is a misdemeanor under $250 and a category D felony at $250 or more, with restitution (NRS 616D.300).

Guaranty protection

The Nevada Insurance Guaranty Association pays covered workers' compensation claims in full, without its usual $300,000 limit (NRS 687A.060).

Common exam traps

• Not monopolistic: private carriers, self-insurers and self-insured associations.
• Compulsory with any employee. Household domestic, farm labor and casual work are excluded.
• Casual means 20 working days or less in a quarter and under $500 of labor cost.
• Self-insurance needs $2.5 million in tangible net worth.
• Uninsured employers lose their common-law defenses, and their negligence is presumed.
• Sole proprietors elect in at a deemed wage of $300 a month, or $1,800 with extra premium.