Short answer: Yes. Nevada makes workers' compensation mandatory for any employer with one or more employees unless a statute excludes the work. The casual-employment exemption is narrow and never applies to construction trades. Sole proprietors with no employees don't have to cover themselves, but licensed contractors must. Uninsured employers face administrative fines of up to $15,000 and full liability for injury costs.
The one-employee rule
The Division of Industrial Relations' Workers' Compensation Section (WCS) puts it plainly in its employer guide: "Unless excluded by statute, it is mandatory for an employer who has one or more employees to provide workers' compensation insurance coverage." The exclusions are in NRS 616A.110.
What's excluded, and what isn't
The guide lists exempt employment that includes:
- Casual employment, meaning work lasting no more than 20 days with a total labor cost under $500, and only if it's outside the employer's trade, business, profession or occupation;
- employees brought into Nevada temporarily who are insured in another state, if extraterritorial agreements are in effect, except in the construction trades;
- interstate commerce employment outside Nevada's legislative power; and
- certain private disability and death benefit plans in effect since before July 1, 1947.
The guide emphasizes the main exception in capital letters: construction trades are required to have workers' compensation insurance.
Sole proprietors and contractors
According to the WCS employer FAQ:
- A sole proprietor with no employees isn't required to cover himself or herself, but may elect to.
- Once a sole proprietor has any employees, those employees must be covered.
- Sole proprietors who are contractors as defined in NRS 624.020, operating within the scope of their license, must secure coverage.
Out-of-state employers with workers in Nevada face a separate set of rules in NRS 616B.600. Whether they need a Nevada policy "depends on many conditions."
How to provide coverage
Nevada employers can:
- buy insurance from a private carrier licensed in Nevada; or
- be certified by the Division of Insurance as a self-insured employer, or join an association of self-insured public or private employers.
Employer compliance checklist
The WCS guide lists duties that apply once you're covered:
- Post notices. Display Form D-1, and Form D-22 if employees receive tips.
- Keep proof on site. Have the policy and declarations page, or self-insurance certificates, available at all locations for inspection. Temporary worksites lasting less than a year must produce them within 24 hours.
- Provide first aid immediately to an injured employee.
- Report injuries. Provide Form C-1, Notice of Injury or Occupational Disease, and complete Form C-3, the Employer's Report, within 6 working days of receiving Form C-4 from the medical provider. File it with your insurer.
Penalties for going without
The guide says WCS is responsible for making sure all employers comply. Employers who don't provide coverage:
- are charged an administrative fine of up to $15,000;
- face appropriate premium penalties;
- may be ordered to close the business until insurance is obtained;
- are financially responsible for all costs of a work-related injury; and
- may face criminal penalties for claims involving substantial bodily harm or death (NRS 616D.200).
The injured worker can also sue. Under NRS 616B.636, when an employer fails to secure compensation, the employee or dependents can bring an action at law, and the employer can't defend by arguing the employee assumed the risks of the job.
What employers get from coverage
The WCS describes workers' comp as a no-fault program. Because Nevada has an exclusive remedy, a covered employer is protected from additional damages for on-the-job injuries when the employee opts into workers' compensation benefits. Benefits may include medical treatment, lost-time compensation, permanent disability benefits, vocational rehabilitation and dependents' benefits.
Scenarios
A Henderson nail salon with one part-time technician who earns tips. Coverage is required, and the salon must display both Form D-1 and Form D-22.
A homeowner in Sparks hires a neighbor for a one-day yard project costing $200. That's likely casual employment outside the homeowner's business, so it may be exempt.
A licensed handyman contractor working alone in Las Vegas. Because he's a contractor under NRS 624.020 working within his license, he must secure coverage even with no employees.
Bottom line
In Nevada, one employee means coverage, and construction is never casual. Read our workers' compensation insurance guide and contractor insurance page.
Contact Alishahi Insurance or call (877) 711-4545. See insurance in Nevada.
Frequently asked questions
Is workers' comp required for one employee in Nevada?
Yes. Unless excluded by statute, any employer with one or more employees must carry coverage.
Do sole proprietors need workers' comp in Nevada?
Not for themselves if they have no employees, but licensed contractors under NRS 624.020 must secure coverage.
What is casual employment in Nevada workers' comp?
Work lasting no more than 20 days with total labor cost under $500, outside the employer's business. It never applies to construction trades.
What is the fine for not having workers' comp in Nevada?
An administrative fine of up to $15,000, plus premium penalties, possible closure and liability for injury costs.
How fast must a Nevada employer file Form C-3?
Within 6 working days of receiving Form C-4 from the medical provider.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.