Nevada Workers‑Comp Requirements: What Employers Must Know

Are Nevada Employers Obligated to Carry Workers' Compensation?

In Nevada, the Workers' Compensation Law mandates that employers with one or more employees must obtain coverage. The only exceptions are sole proprietors with no employees, certain agricultural employers with a single employee, and some non‑profit organizations that meet specific criteria. All other businesses must secure a policy that covers medical expenses, lost wages, and disability benefits for employees who are injured on the job.

How to Get Covered: Registration and Licensing

Employers begin by selecting a licensed workers' compensation carrier—Nevada has a limited number of approved insurers. After choosing a carrier, the employer files a Form 4 (Employer's Information Statement) with the Nevada Department of Labor and Industry. The carrier then issues an Employer Identification Number (EIN) that must be used on all payroll records and insurance documents.

Premiums and Payment Schedules

Premiums are calculated based on a company's payroll and the industry's classification code. Nevada uses a state‑wide rate schedule, and employers pay quarterly. Late payments trigger a 10% interest penalty and may result in a suspension of coverage.

Penalties for Non‑Compliance

Failing to carry workers' compensation exposes an employer to civil and criminal penalties. The state can impose fines up to $5,000 per violation and, in severe cases, criminal charges. Additionally, injured employees can sue for unpaid medical costs and lost wages if the employer is uninsured.

Exemptions and Special Cases

Exempt categories include:

• Employers with zero employees.
• Agricultural employers with one employee working on a farm or ranch.
• Non‑profit organizations that file a valid exemption affidavit and maintain a small workforce.

Employers in these categories must still report to the Department of Labor and Industry but are not required to purchase insurance.