When Is an Employer Based in Nevada Required to Have Worker's Compensation Insurance?
Full Question:
Answer:
The answer depends on all the facts and circumstances involved. 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.
Please see the following NV statute to determine applicability:
NRS 616B.600 Exemption of employer and employee temporarily within State;
exception; effect of employee working in another state where coverage
required.
1. Except as limited in subsection 3, any employee who has been hired
outside of this State and his employer are exempted from the provisions of
chapters 616A to 616D, inclusive, and chapter 617 of NRS while the employee
is temporarily within this State doing work for his employer if his
employer has furnished industrial insurance pursuant to the Nevada
Industrial Insurance Act or similar laws of a state other than Nevada so as
to cover the employee's employment while in this State if:
(a) The extraterritorial provisions of chapters 616A to 616D, inclusive,
and chapter 617 of NRS are recognized in the other state; and
(b) Employers and employees who are covered in this State are likewise
exempted from the application of the Nevada Industrial Insurance Act or
similar laws of the other state. The benefits provided in the Nevada
Industrial Insurance Act or similar laws of the other state are the
exclusive remedy against the employer for any injury, whether resulting
in death or not, received by the employee while working for the employer
in this State.
2. A certificate from the Administrator or similar officer of another
state certifying that the employer of the other state is insured therein
and has provided extraterritorial coverage insuring his employees while
working within this State is prima facie evidence that the employer carried
the industrial insurance.
3. The exemption provided for in this section does not apply to the
employees of a contractor, as defined in NRS 624.020, operating within the
scope of his license.
4. An employer is not required to maintain coverage for industrial
insurance in this State for an employee who has been hired or is regularly
employed in this State, but who is performing work exclusively in another
state, if the other state requires the employer to provide coverage for the
employee in the other state. If the employee receives personal injury by
accident arising out of and in the course of his employment, any claim for
compensation must be filed in the state in which the accident occurred, and
such compensation is the exclusive remedy of the employee or his
dependents. This subsection does not prevent an employer from maintaining
coverage for the employee pursuant to the provisions of chapters 616A to
616D, inclusive, and chapter 617 of NRS.
NRS 616B.603 Independent enterprises.
1. A person is not an employer for the purposes of chapters 616A to 616D,
inclusive, of NRS if:
(a) He enters into a contract with another person or business which is an
independent enterprise; and
(b) He is not in the same trade, business, profession or occupation as
the independent enterprise.
2. As used in this section, "independent enterprise" means a person who
holds himself out as being engaged in a separate business and:
(a) Holds a business or occupational license in his own name; or
(b) Owns, rents or leases property used in furtherance of his business.
3. The provisions of this section do not apply to:
(a) A principal contractor who is licensed pursuant to chapter 624 of
NRS.
(b) A real estate broker who has a broker-salesman or salesman associated
with him pursuant to NRS 645.520.
4. The Administrator may adopt such regulations as are necessary to carry
out the provisions of this section.
NRS 616B.606 Real estate brokers and salesmen not employers under certain
circumstances.
Any person licensed pursuant to the provisions of chapter 645 of NRS who
engages an independent contractor to maintain or repair property on behalf
of an individual property owner or an association of property owners is not
a statutory employer for the purposes of chapters 616A to 616D, inclusive,
of NRS.
NRS 616B.624 Applicability to officers of quasi-public, private and
nonprofit corporations and managers of limited-liability companies;
rejection of coverage by certain officers and managers.
1. If a quasi-public or private corporation or a limited-liability
company is required to be insured pursuant to chapters 616A to 616D,
inclusive, of NRS, an officer of the corporation or a manager of the
company who:
(a) Receives pay for services performed as an officer, manager or
employee of the corporation or company shall be deemed for the purposes of
those chapters to receive a minimum pay of $6,000 per policy year and a
maximum pay of $36,000 per policy year.
(b) Does not receive pay for services performed as an officer, manager or
employee of the corporation or company shall be deemed for the purposes of
those chapters to receive a minimum pay of $500 per month or $6,000 per
policy year.
2. An officer or manager who does not receive pay for services performed
as an officer, manager or employee of the corporation or company may elect
to reject coverage for himself by filing written notice thereof with the
corporation or company and the insurer. The rejection is effective upon
receipt of the notice by the insurer.
3. An officer or manager of such a corporation or company who:
(a) Owns the corporation or company; and
(b) Receives pay for the services performed, may elect to reject coverage
for himself by filing written notice thereof with the insurer. The
rejection is effective upon receipt of the notice by the insurer.
4. An officer or manager who has rejected coverage may rescind that
rejection by filing written notice thereof with the corporation or company
and the insurer. The rescission is effective upon receipt of the notice by
the insurer. Except as otherwise provided in subsection 3, if an officer or
manager who has rejected coverage receives pay for services performed as an
officer, manager or employee of the corporation or company, the officer or
manager shall be deemed to have rescinded that rejection.
5. A nonprofit corporation whose officers do not receive pay for services
performed as officers or employees of the corporation may elect to reject
coverage for its current officers and all future officers who do not
receive such pay by filing written notice thereof with the corporation and
the insurer. The rejection is effective upon receipt of the notice by the
insurer.
6. A nonprofit corporation which has rejected coverage for its officers
who do not receive pay for services performed as officers or employees of
the corporation may rescind that rejection by filing written notice thereof
with the corporation and the insurer. The rescission is effective upon
receipt of the notice by the insurer. If an officer of a nonprofit
corporation which has rejected coverage receives pay for services performed
as an officer or employee of the corporation, the corporation shall be
deemed to have rescinded that rejection.
NRS 616B.639 Limitation of liability of principal contractor for industrial
injury to independent contractor or employee of independent contractor.
1. A principal contractor is not liable for the payment of compensation
for any industrial injury to any independent contractor or any employee of
an independent contractor if:
(a) The contract between the principal contractor and the independent
contractor is in writing and the contract provides that the independent
contractor agrees to maintain coverage for industrial insurance pursuant to
chapters 616A to 616D, inclusive, of NRS;
(b) Proof of such coverage is provided to the principal contractor;
(c) The principal contractor is not engaged in any construction project;
and
(d) The independent contractor is not in the same trade, business,
profession or occupation as the principal contractor.
2. The Administrator may adopt such regulations as are necessary to carry
out the provisions of this section.
NRS 616B.642 Limitation on liability of owner of property who is not acting
as principal contractor.
An owner of property who is not acting as a principal contractor may not
be held liable for any payment, in excess of any remaining money retained
by him to assure payments under chapters 616A to 616D, inclusive, of NRS,
of costs relating to industrial insurance required to be paid by his
principal contractor or any subcontractor, should the principal contractor
or subcontractor default or otherwise be unable to pay for the required
insurance.
See also:
http://dirweb.state.nv.us/WCS/FAQs.pdf