Worker’s Compensation

What is Workers’ Compensation in Nevada

Workers compensation insurance or workers’ comp is a form of insurance providing wage replacement and medical benefits to employees injured in the course of employment in exchange for mandatory relinquishment of the employee’s right to sue his or her employer for the tort of negligence. 

Workers’ compensation is a no-fault insurance program in the State of Nevada, which provides benefits to employees who are injured on the job and protection to employers who have provided coverage at the time of injury.

Employers should provide a safe workplace, provide safe tools, give warnings of dangers, provide adequate co-worker assistance (fit, trained, suitable “fellow servants”) so that the worker is not overburdened, and promulgate and enforce safe work rules.

NV LAW IS EXCLUSIVE REMEDY

Because Nevada has “exclusive remedy,” the injured workers’ benefits are set forth in the statutes. Employers who provide coverage for their employees at the time of injury are protected from any additional damages claimed by their employees as a result of an injury on the job. This protection is established when the injured employee opts to receive workers’ compensation benefits.

How are Premiums Calculated in NV?

Your workers compensation carrier should only be charging your company for premium on no more than $36,000 on payroll for EACH individual employee. If an employee makes less than the $36,000 cap, then their true payroll should be reported. The application of this regulation means that your company needs to report only the first $36,000 of “payroll” for each individual employee in your company to the workers compensation carrier. When you fill out your audit each year, keep this in mind.

WORKERS COMP HAS THREE SECTIONS

Section 1 is for the employer to provide via the workers compensation insurance policy medical benefits to injured employees.

Section 2 is for the family members of the injured employee

Section 3 is all states coverage

The owners should include yourself because of Section 2. It will cost more to insure yourself. Is your family worth it?

EACH POLICY IS AUDITED EVERY YEAR

Your workers compensation Insurance policy is audited each and every year by the majority of insurance companies. A workers comp audit is an annual review of records at the request of an insurance company. It may be done by phone, mail, or in person depending on the assigned Auditor. Work comp audits determine if the payroll and class codes quoted at inception accurately reflect the actual payroll and scope of work performed during the policy period.

Audits also ensure that sub-contractors had their own coverage in place. If not, you may be charged for payments to uninsured sub-contractors on your policy on your audit. When you use subcontractors, make sure you have proof of coverage from each subcontractor so you do not have to provide the coverage for those subcontractors. The auditor will request the certificate of insurance document to verify.

EMPLOYER PROTECTIONS

Statutory No-Fault Compensation

Workers’ compensation statutes are intended to eliminate the need for litigation and the limitations of common law remedies by having employees give up the potential for pain-and-suffering-related awards, in exchange for not being required to prove tort (legal fault) on the part of their employer. The laws provide employees with monetary awards to cover loss of wages directly related to the accident as well as to compensate for permanent physical impairments and medical expenses.

Some laws also protect employers and fellow workers by limiting the amount an injured employee can recover from an employer and by eliminating the liability of co-workers in most accidents. US state statutes establish this framework for most employment. US federal statutes are limited to federal employees or to workers employed in some significant aspect of interstate commerce.

LOSS OF CONSORTIUM

The laws also provide benefits for dependents of those workers who are killed in work-related accidents or illnesses. Loss of consortium is the loss of companionship, comfort, sexual relations or the ability to bear children. It’s any kind of emotional or relationship loss that occurs because of the accident.

INTERESTING CLAIM CASES

THE TITANIC

THE LARGEST CLAIM PAID – $10 MILLION

“You Won’t Believe How Much the Highest Workers’ Comp Settlement Was”.

Law Technology Today

One of the largest workers’ comp settlement payments ever awarded was for $10 Million to an employee who suffered a life-altering brain injury in an auto/tree collision while driving home from work in the early hours of the morning. It was deemed a workers’ comp case because she had been at work for a special project outside of normal hours. workers compensation insurance

CROCKPOT INCIDENT

SCATS – SAFETY CONSULTATION AND TRAINING SECTION

SAFETY IN THE WORKPLACE, IT IS EVERYBODY’S BUSINESS

WHAT TYPES OF BENEFITS ARE EMPLOYEES ENTITLED TO?

Nevada’s Workers Compensation Insurance Program provides a variety of benefits which are designed to assist the injured employee. These benefits may include (among others):

• Medical treatment;

• Lost time compensation (TTD/TPD);

• Permanent Partial Disability (PPD);

• Permanent Total Disability (PTD);

• Vocational Rehabilitation;

• Dependent’s benefits in the event of death; and

• Other claims-related benefits or expenses (i.e., mileage)

WHICH EMPLOYERS ARE REQUIRED TO PROVIDE WORKERS’ COMPENSATION INSURANCE?

Unless excluded by statute, it is mandatory for an employer who has one or more employees to provide workers’ compensation insurance coverage in the state of Nevada. Some employees are excluded 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’ COMPENSATION INSURANCE.

WORKERS COMPENSATION CONSEQUENCES

The Division of Industrial Relations, Workers’ Compensation Section (WCS) is responsible for ensuring all employers are in compliance with the law. Employers who do not provide workers’ compensation will be charged with an administrative fine up to $15,000; appropriate premium penalties; may be ordered to close business until insurance has been obtained; and will be held financially responsible for all costs arising from a work-related injury. In addition, the uninsured employer may be subject to a criminal penalty for claims resulting in substantial bodily harm or death. (NRS 616D.200 & NAC 616D.345).

FROM NCCI

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.

FOR CURRENT RATING PAYROLL: 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.

FOR CURRENT RATING PAYROLL: 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.

FOR CURRENT RATING PAYROLL: Be sure to contact the Nevada Department of Business and Industry to acquire current rating payrolls and instructions on how to properly use them.

Election or Rejection of Coverage Form:

· Form D-43 – Employee Election to Reject Coverage and Election to Waive the Rejection of Coverage for Excluded Persons

· Form D-44 – Employer Election of Coverage and Employer Withdrawal of Election of Coverage

· Form D-45 – Sole Proprietor Coverage

Notes About Forms: Be sure to check with your insurance company for additional forms they may use.

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’ COMPENSATION INSURANCE.

Experience Rating Eligibility: Nevada employers will receive an experience modification rate or EMR once 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 Statute About Subrogation

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!

· Extraterritorial:

· Provisions: Yes

· Duration: 6 months and may be extended

· Reciprocity:

· Allowed: Yes

· Specific Statute or Reference: Nevada 616B.600; Exemption of employer and employee temporarily within State; exception; effect of employee working in another state where coverage required.

· For More Information Contact: Nevada Department of Business and Industry shown below.

Regulated By: Nevada Department of Business and Industry

Nevada Department of Business and Industry Division of Industrial Relations Division Headquarters 400 West King Street, Suite 400 Carson City, Nevada 89703 Telephone: (775) 684-7260 Facsimile: (775) 687-6305 Nevada Department of Business and Industry

Workers compensation statute can be found here: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”.

Nevada Workers Compensation Statute

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.

Contact Us: Get Help With Insurance, Inc.

223 South Water Street

Henderson, NV 89015

702-541-0882

ORIGINS OF WORKERS’ COMPENSATION

Eighteenth century pirates and a nineteenth century German “Iron” Chancellor preceded the United States in the creation of a social system for the protection of injured workers. The modern workers compensation insurance system owes parts of its existence to this unique parentage.

ARRRRRGH, I’m Hurt!

Pirates, contrary to popular myth, proved to be highly organized and entrepreneurial. Prior to their assignment to the ranks of outlaws, they were considered highly-prized allies of the government; plundering and sharing the spoils with governors of the pre-Revolutionary colonies giving them a safe port.

Privateering (the gentlemen’s term for piracy) was a dangerous occupation; taking booty away from those who did not want to give it up leads to sea battles, hand-to-hand combat and injury. Because of the ever-present chance of impairment, a system was developed to compensate injured “employees.” There was one catch: he or she (there were female pirates, as well) had to survive the wounds to collect benefits as there was no recorded compensation for death.

Piratesinfo.com provides some information regarding the amount of payment made to the injured:

Loss of an eye – 100 pieces of eight (Spanish dollar);

Loss of a finger – 100 pieces of eight;

Loss of a left arm – 500 pieces of eight;

Loss of a right arm – 600 pieces of eight;

Loss of a left leg – 400 pieces of eight;

Loss of a right leg – 500 pieces of eight.

Average weekly wage for colonial Americans of this period equated to approximately two pieces of eight per week. Loss of an eye or finger would merit payment approximating 50 weeks of wages.

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