Swarts Manning is committed to keeping our clients updated on key legislative changes affecting Nevada’s insurance landscape. The National Council on Compensation Insurance (NCCI) recently issued its analysis of the impact of Senate Bill 317 (SB 317), a bill set to change how workers’ compensation premiums are calculated across Nevada. Below is a brief summary of the bill and NCCI’s findings from the latest review.
NCCI’s Findings: Impact on Premiums
SB 317, enacted on June 11, 2025, reforms Nevada’s workers’ compensation statutes in several ways, most notably by increasing the maximum payroll cap used for premium calculations, which will now be updated annually according to average wage data. Please note that while SB 317 also modifies other aspects of Nevada worker’s compensation law, this message focuses solely on the removal of the payroll cap as that change makes the largest impact on premiums.
NCCI expects that SB 317 will not impact overall workers’ compensation system costs or premiums at the statewide level in Nevada. The primary change introduced by SB 317 is an increase to the cap on payroll used when determining workers’ compensation premium. Instead of a static annual cap of $36,000, there will now be a dynamic cap set at 12 times the state’s average monthly wage, updated yearly by the state. Because NCCI develops loss costs and assigned risk rates based on this exposure base, the analysis finds that increasing the payroll cap will be offset by a commensurate decrease in loss costs, resulting in a premium-neutral outcome for the system overall. In simple terms: the offsetting changes of increased payroll and lower loss costs will generally result in a premium-neutral effect, on average.
Impacts may vary by industry, with sectors such as construction and manufacturing experiencing more pronounced effects than sectors where typical payrolls are closer to the current cap, like leisure and hospitality. Accordingly, although NCCI’s estimate indicates that, on average, there will be little effect on premiums statewide once the offsets are factored in, construction and manufacturing businesses may still see some increase in premium.
What Swarts Manning Clients Should Know
- The payroll cap increase is set to take effect on October 1, 2026; other provisions go into effect July 1, 2027.
- NCCI’s analysis shows that, despite this major payroll cap change, the impact on premiums should be neutral on a statewide basis, though individual impacts may differ by sector and employer.
- Swarts Manning will continue to monitor regulatory developments and provide additional updates as future filings and specific impacts are clarified.
If you have questions about how SB 317 may affect your organization’s workers’ compensation program, please reach out to your Swarts Manning risk manager for guidance and support specific to your business.
Each month, Swarts Manning insurance experts cover relevant topics for your business. Stay tuned for more discussions about managing your insurance and industry-specific tips.
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