Nevada SB 317: Workers Comp Explained

Expert Analysis for Nevada Agents on SB 317 and Workers Comp Compliance

Nevada Workers Comp Law Update: SB 317 Overview

Keeping up with the latest laws in Nevada is crucial for understanding how workers compensation premium calculations now work. With Senate Bill 317 (SB317) taking effect, agents who advise private employers, including those in higher-risk or lower-capacity sectors, must be prepared to navigate and communicate the impacts of this new law. This guide offers practical advice, drawing on proven industry methods and up-to-date data sources.

Executive Summary

Senate Bill 317 (SB317) brings significant changes in Nevada’s workers compensation insurance premium calculation. The historical annual cap of $36,000 per employee no longer applies for most private businesses; instead, the cap will now be linked to the state’s average monthly wage, which will be reviewed and changed as new workforce statistics become available.

For example, before SB 317, if an employee earned $64,000 per year, only the first $36,000 of that income would count toward the employer’s workers compensation premium calculation. Under the new law, the entire $64,000 salary is included in the premium calculation (up to the new maximum tied to the statewide average wage).

These updates have broad implications for all workers compensation policies in Nevada, especially where employee salaries tend to surpass the previous wage ceiling.

Workers Comp impact

What Has Changed vs. Prior Law

Previous Law:
Private employers calculated workers compensation premiums using an annual payroll cap of $36,000 per employee, set by state statute.
SB317 Update:
Section 4.2 of SB317 removes the $36,000 payroll cap for private businesses (excluding state and local government). From now on, premiums are capped using a formula: twelve times Nevada’s average monthly wage as published by workforce authorities.

Who Is Affected:
Nearly all private employers in Nevada will be subject to the new premium calculation method. The greatest financial shift will be for those with high-earning employees.

Business Impact for Agents

Policies for employees earning more than $36,000 annually will see adjusted payroll calculations, affecting their premium amount.
Companies with higher-wage earners will notice that their premiums rise to match actual payroll, rather than being limited by a fixed cap.
Opportunity exists for agents to provide clear guidance, helping clients anticipate changes and integrate new premium calculations into their financial planning.
Using official wage data and guidance from regulatory agencies will help agents stand out for strong client service and dependable compliance advice.

Expert Insight

Scott Fink, VP Sales and Distribution, Berkley Industrial Comp:

“Nevada is shifting its stance on wage capping for workers compensation. That old payroll cap of $36,000 is being replaced by most employers. Starting in October 2026, the wage cap will adjust based on statewide average wages, calculated as twelve times Nevada’s average monthly wage. For accounts with higher salaries, this means audited payrolls will be larger. Naturally, this also leads to an increase in premiums for your clients.
By starting these conversations early, you can offer clients valuable insights and greater transparency during this time of change. Positioning yourself as a knowledgeable resource not only builds trust but also helps clients feel more secure and prepared as premium calculations evolve. This approach can make a positive difference, helping to reduce the risk of unexpected audit surprises or policy discrepancies down the road”

Actionable Guidance and Takeaways for Agents

Start Early:
Initiate conversations with clients as soon as possible regarding the premium adjustments under SB317. Use actual wage information from Nevada’s Workforce reports to guide your recommendations.
Educate Clearly:
Employers in Nevada may not fully understand the recent updates; agents have the opportunity to provide critical insight early on. Use authoritative references and workforce data to explain how the previous $36,000 wage cap differs from the new calculation. Proactive education and precise payroll estimation are crucial for client compliance and retention.
Monitor Audits:
With new wage calculation formulas, the accuracy of payroll estimates becomes particularly important, as errors can lead to expensive audit corrections. Help clients carefully evaluate audit findings and refer them to resources from the Workers Compensation Section.

Building Stronger Partnerships

Navigating updates to Nevada’s workers compensation laws requires teamwork, and Berkley Industrial Comp brings industry expertise to help agents respond effectively to reforms such as SB317.

Exceeding expectations is a core value within our organization. We aim to deliver genuine value in every interaction, offering not just insurance solutions but also trusted advisory that empowers agents to thrive in a dynamic marketplace.

For questions and strategic support, contact Berkley Industrial Comp by clicking below. We’re here to help you elevate your expertise and maximize your impact on the Nevada workers compensation landscape.

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