Nevada law requires employees to have workers’ compensation. Insurance coverage includes permanent partial disability payments and vocational retraining benefits, which can be paid in installments or as a lump sum.
Nevada businesses with one employee or more are required to carry workers’ compensation insurance. Under Nevada statutes, “business” includes any person, firm, voluntary association, private corporation, and public service corporation that hires employees.
An “employee” is anyone hired by an employer or through a contract of hire or apprenticeship.
Estimated employer costs for workers’ compensation in Nevada are $0.95 per $100 in covered payroll, according to the National Academy of Social Insurance [PDF].
Each employer’s cost for worker’s compensation coverage is based on workers’ compensation class codes, which depend on the work duties performed by employees. Your workers’ compensation insurance company will determine your cost based on how many employees perform different jobs at your company and their exposure to risk.
Workers’ compensation in Nevada is regulated by the State of Nevada Department of Business and Industry Workers’ Compensation Section (WCS).
If an employer fails to obtain or maintain workers’ compensation insurance in Nevada, it could be charged a fine up to $15,000 in addition to premium penalties and a stop-work order until insurance is obtained.
The employer would also be financially liable for any injuries that happen during the period when an employee is uninsured. Additionally, if a work-related injury results in substantial bodily harm or death, the employer could be held criminally responsible.
If an employee dies as a result of a work-related injury or illness, death benefits can be awarded to surviving dependents.
Surviving dependents include any child under 18, a child under age 22 who is a full-time student, or a child of any age who is incapable of self-support. A living spouse is always entitled to death benefits.
If the deceased worker has no spouse or children, benefits could be awarded to their dependent parents or minor siblings, as well as other family members who were dependent on the person for financial support.
The deceased worker’s spouse can receive 66% of the worker’s average monthly wage, up to a maximum that changes each year. This benefit is for the spouse and children and is divided if the spouse is not the parent of the children. If that’s the situation, the spouse would receive half of the benefit and the children would share the other half.
Workers’ compensation insurance covers burial costs up to $10,000.
A workers’ compensation settlement is an agreement between the parties that will resolve your workers’ compensation claim. This benefits both the employee and the employer. A settlement in a workers’ compensation claim is a full and final resolution.
Most states pay workers’ compensation settlements in a lump sum. In Nevada, lump-sum payments are only allowed for some types of benefits.
Permanent partial disability (PPD) benefits are awarded when your claim is accepted or you’ve received the award from a workers’ compensation judge. This is when a worker has a permanent impairment but can still work to some degree.
If you’re entitled to PPD benefits, you can request a lump-sum payout. In most cases, though, a PPD benefit is paid in installments until the worker reaches age 70. There are specific circumstances when you can collect a partial lump sum based on your disability rating and the date of your injury.
Nevada also allows for vocational rehabilitation benefits. If a worker is eligible for job retraining, education, or assistance finding a job, they might qualify for these biweekly maintenance payments while receiving services. The worker has a right to these services but could choose to forfeit them and accept a lump-sum payment instead. This lump sum must be at least 40% of the amount of the maximum vocational rehabilitation benefits to which they’re entitled.
An injured worker is encouraged to notify the employer of the injury as soon as possible, but state law requires notice within seven days. The employee then has 90 days from the date of injury to submit a form to the state if they missed work because of the injury or illness or sought medical treatment.
If the workplace injury results in death, the survivors have one year from the worker’s death in which to file a claim.
Start a free online application today to compare workers’ compensation insurance quotes for your small business from leading U.S. carriers. Insureon’s licensed agents specialize in insurance for numerous Nevada businesses.