A contractor's employee is injured on a Nevada job site. The contractor lacks workers' compensation insurance. What is the potential penalty under NRS 624?
Correct Answer
C) $10,000 fine and possible license revocation
Operating without required workers' compensation insurance is a serious violation that can result in fines up to $10,000 and possible license revocation.
Why This Is the Correct Answer
Under NRS 624, operating without required workers' compensation insurance is considered a serious violation of Nevada contractor licensing law. The statute specifically provides for penalties up to $10,000 in fines and allows for possible license revocation when contractors fail to maintain mandatory workers' compensation coverage. This severe penalty reflects the importance Nevada places on protecting workers through proper insurance coverage.
Why the Other Options Are Wrong
Option A: $5,000 fine and license suspension
While this option includes license suspension, the fine amount of $5,000 is insufficient under NRS 624. The actual penalty allows for fines up to $10,000, and the most severe consequence is license revocation, not just suspension.
Option B: $1,000 fine
A $1,000 fine significantly underestimates the severity of operating without workers' compensation insurance. This penalty is far too lenient for such a serious violation that puts injured workers at risk of not receiving proper compensation.
Option D: $15,000 fine and mandatory probation
While the $15,000 fine exceeds the actual maximum penalty under NRS 624, mandatory probation is not the specified consequence. The law provides for possible license revocation as the most severe disciplinary action, not probation.
Memory Technique
Remember 'Ten Thousand Revoke' - workers' comp violations can cost up to $10,000 and potentially revoke your license entirely.
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