If your business has employees working in Nevada, an important workers’ compensation law change is taking effect on October 1, 2026, and it could affect your premium calculations at your next renewal.
What’s Changing?
Nevada is increasing the maximum payroll subject to workers’ compensation premium calculations from $36,000 per employee to $98,433 per employee.
Going forward, that payroll cap will also be adjusted annually for inflation.
At first glance, this sounds like a dramatic premium increase—but that’s not necessarily the case.
Will Your Premium Increase?
Not automatically.
Workers’ compensation premiums are based on several factors, including:
● Payroll
● Employee job classifications
● Claims history
● Experience Modification Factor (if applicable)
● State-approved loss costs and carrier pricing
Because the state is also reducing loss costs, many employers may see little overall premium impact. The actual effect will vary depending on the type of work your employees perform and your individual policy.
Why This Matters
The biggest risk isn’t necessarily your renewal premium.
It’s the premium audit that comes afterward.
If payroll estimates aren’t updated before your policy renews, your insurance company may discover higher payroll during the annual audit. That can result in an unexpected additional premium invoice months after the policy begins.
Those surprises are avoidable with good planning.
What We Recommend
If your business has employees in Nevada:
● Review payroll estimates before your renewal.
● Confirm that employee classifications remain accurate.
● Discuss any changes in staffing, compensation, or operations with your insurance advisor.
● Make sure your policy reflects your current payroll before it renews.
A short conversation today can help eliminate unpleasant surprises later.
Our Perspective
At UWIB Risk, we believe our job is much more than finding an insurance policy.
We monitor legislative changes, carrier updates, and evolving regulations so our clients have the opportunity to make informed decisions before those changes become costly problems.
This Nevada workers’ compensation change is a good example of why proactive risk management matters.
Let’s Review Your Nevada Exposure
If your company has employees working in Nevada—or you’re unsure whether this change applies to your business—we’d be happy to review your workers’ compensation program with you.
A brief review today could help you avoid unexpected premium adjustments tomorrow.