Workers Comp Insurance in Nevada
On October 1, 2026, Nevada's $36,000 workers comp payroll cap ended for private employers. Payroll per employee now counts up to $98,433.60 on new and renewal policies. Here is what that changes, who must carry comp, and what really happens if you do not.
Commercial Insurance › Workers Compensation › Nevada
Workers compensation pays medical bills and lost wages when an employee is hurt on the job. Nevada's Division of Industrial Relations (DIR) enforces it, and in Nevada it also stands between you and your business license.
This page covers the Nevada rules. For how comp works in general, see our workers compensation guide.
Written and reviewed by the Grit Insurance Group team · Last reviewed October 12, 2026
Grit is an independent brokerage licensed in Nevada. We place commercial insurance and surety bonds for Nevada businesses from our headquarters in Salt Lake City.
Is Workers Comp Required in Nevada?
Yes, from the first employee. Under NRS 616B.633, wherever an employer has any employee under a contract of hire, Nevada's workers comp law is "conclusive, compulsory and obligatory" on both of them. Some pages say Nevada only requires comp at three employees. That is wrong.
You must also keep a copy of the policy, including the declarations page, available for inspection at each place of business (NRS 616A.495).
Whether a particular worker is an employee is a legal question; talk to an employment attorney. We can tell you how the policy and the audit will treat them.
The October 1, 2026 Payroll Cap Change
For years, Nevada counted no more than $36,000 of any one employee's pay in a policy year when calculating premium. SB 317 (2025) amended NRS 616B.222 to change that for private employers.
| Who | Payroll counted per employee for premium |
|---|---|
| Private employers, through September 30, 2026 | $36,000 |
| Private employers, from October 1, 2026 | 12 times the maximum average monthly wage: $98,433.60 per NCCI, on new and renewal policies. Next update expected January 1, 2027. |
| State and political subdivision employers | Stays at $36,000 |
| Paid corporate officers and LLC managers (NRS 616B.624) | Unchanged: $6,000 minimum, $36,000 maximum per policy year |
| Sole proprietors who elect coverage | Unchanged |
What it means for you:
- Higher-wage employers report more payroll. A supervisor or tradesperson paid well above $36,000 used to stop counting at $36,000. Now more of that pay goes on the policy.
- Lower-wage employers whose people earn under $36,000 report the same payroll they always did.
- Rates adjust. NCCI expects the change to be premium-neutral on an overall statewide basis. That is a statewide average, not a promise about your policy. The money moves between employers rather than rising across the board.
The practical risk is the audit. If your estimated payroll was built on the old cap, the audit will true it up. Send us payroll by employee and class before renewal and we will show you where the new cap lands.
Who Must Carry Workers Comp in Nevada
- Any employer with one employee (NRS 616B.633).
- Principal contractors, for their subs. Under NRS 616A.210, subcontractors, independent contractors and the employees of either are deemed employees of the principal contractor. Nevada has an independent enterprise exception (NRS 616B.603), but subsection 3 says it does not apply to a principal contractor licensed under NRS 624.
- Sole proprietors may elect coverage for themselves by filing a written notice of election with the Administrator and a private carrier (NRS 616B.659).
- Owner-officers and managers may reject. A corporate officer or LLC manager who owns the company and receives pay may reject coverage by written notice to the insurer (NRS 616B.624).
For a contractor, the sub rule is the one that shows up at audit. If a sub cannot show coverage, assume its labor lands on your policy. Collect a current certificate from every sub, every job.
What Is the Penalty for Not Having Workers Comp in Nevada?
| Consequence | Source |
|---|---|
| Stop-work order: immediate cessation of business operations at the place of employment or jobsite until you comply | NRS 616D.110 |
| Back premium for the uninsured period, up to 6 years, plus interest | NRS 616D.200 |
| First offense: misdemeanor | NRS 616D.200 |
| Employee seriously hurt or killed, or a second offense within 7 years: category C felony, 1 to 5 years and a fine of $1,000 to $50,000 | NRS 616D.200 |
| The injured employee can sue you directly. You lose the assumption of risk, fellow servant and contributory negligence defenses, and negligence is presumed | NRS 616B.636 |
| Contractors: summary license suspension and the public works bid bar | NRS 624.256 |
Some pages say the penalty for not carrying comp is a fine of up to $15,000. That figure comes from NRS 616D.120(1), which fines claim-handling misconduct such as inducing a claimant not to report or refusing to pay. It is not the no-coverage penalty. The real exposure is the claim, the back premium and the felony.
DIR's administrative fines were also rewritten by SB 317, effective June 11, 2025. Minor and clerical violations start with a notice of correction. Other violations of the same section are fined up to $375, then $750, $1,500 and $3,000 for a fourth or later violation.
Nevada Has No State Fund
Nevada's State Industrial Insurance System was privatized. On January 1, 2000, it became Employers Insurance Company of Nevada, a private domestic mutual insurance company. Some pages still describe a state workers comp fund. There is none.
Coverage comes from private carriers or qualified self-insurance. If no carrier will write you, the backstop is the Nevada Workers' Compensation Insurance Plan, the assigned risk market. Under NRS 686B.1771 and NAC 686B.830, every workers comp insurer must participate. We work the voluntary market first and go to the plan when it is the right answer.
Contractor Licensing and the Business License Affidavit
Comp is tied to your right to operate in two places:
- State Contractors Board. Every original and renewal license requires proof of comp or a no-employee affidavit (NRS 624.256). The affidavit requires all three: no employees, no intent to sub for a principal contractor, and no intent to bid a job for a principal contractor or sub. A sole owner who subs for GCs does not qualify. DIR reports a lapse to the Board within 10 days, and a summary suspension follows.
- Business license. Counties and cities require an affidavit that the business has coverage or is not subject to the law (NRS 244.33505, 268.0955).
More on licensing on our Nevada business insurance page and our Nevada contractor license bond page.
How Nevada Workers Comp Premium Is Calculated
| Input | What it is | What you control |
|---|---|---|
| Class code | Describes the work each employee does. Office and field classes carry very different rates. | Keep every employee in the correct class. |
| Payroll | Charged per $100 of payroll in each class, counted up to $98,433.60 per employee for private employers from October 1, 2026. | Estimate honestly under the new cap. The audit trues it up. |
| Experience mod | Compares your claims to similar businesses. | Safety, return-to-work, and prompt claim reporting. |
| Uninsured subs | Deemed your employees under NRS 616A.210 and commonly added at audit. | Collect certificates from every sub. |
Working Outside Nevada
Nevada crews regularly cross into Utah, Arizona, California, Idaho and Oregon. None of those is a monopolistic state, but a Nevada policy does not automatically cover work in another state. List every state you work in on the application.
Frequently Asked Questions
Is workers comp required in Nevada?
Yes. Nevada's workers comp law is compulsory for any employer with one employee under a contract of hire (NRS 616B.633). There is no three-employee threshold. Counties, cities and the State Contractors Board also require proof of coverage or an affidavit before issuing a license.
What changed with the Nevada workers comp payroll cap on October 1, 2026?
SB 317 (2025) amended NRS 616B.222. For private employers, payroll counted per employee for premium is now capped at 12 times the maximum average monthly wage, $98,433.60 per NCCI, on new and renewal policies from October 1, 2026. It was $36,000. Public employers stay at $36,000, and the next update is expected January 1, 2027.
What is the penalty for not having workers comp in Nevada?
The state can order business operations stopped, charge back premium for up to 6 years plus interest, and prosecute. A first offense is a misdemeanor. If an employee is seriously hurt or killed, or on a second offense within 7 years, it is a category C felony with a fine of $1,000 to $50,000. An injured employee can also sue the employer with its usual defenses removed.
Does Nevada have a state workers comp fund?
No. Nevada's State Industrial Insurance System became Employers Insurance Company of Nevada, a private mutual, on January 1, 2000. Employers who cannot find coverage in the voluntary market go to the Nevada Workers' Compensation Insurance Plan, and every workers comp insurer must participate in it.
Do Nevada contractors need workers comp for subcontractors?
Under NRS 616A.210, subcontractors, independent contractors and their employees are deemed employees of the principal contractor for workers comp purposes, and the independent enterprise exception does not apply to a principal contractor licensed under NRS 624. Collect proof of coverage from every sub before work starts.
Get a Nevada Workers Comp Quote
Send us payroll by employee and class and three years of loss runs. We will check your class codes, mod and the new payroll cap, and quote the carriers that fit your operation.
Call the Grit team at (801) 505-5500 or start online.
