A Nevada contractor discovers that their employee was injured on the job, but the contractor failed to carry workers' compensation insurance. What is the potential penalty under Nevada law?
Correct Answer
A) Fine up to $10,000 plus liability for all medical costs and lost wages
Nevada law imposes significant penalties for failure to carry required workers' compensation insurance, including fines up to $10,000 plus full liability for medical costs and lost wages.
Why This Is the Correct Answer
Nevada law imposes severe penalties for failing to carry mandatory workers' compensation insurance. A contractor found without coverage when an employee is injured faces fines up to $10,000 AND personal liability for all of the injured worker's medical costs and lost wages. This dual penalty — financial fine plus full cost liability — reflects the seriousness of the violation.
Why the Other Options Are Wrong
Option B: Automatic license suspension for 30 days
A 30-day automatic license suspension, while possible as part of broader disciplinary action, is not the primary statutory penalty for workers' comp violations. The law focuses on financial penalties and direct liability for worker costs, not just a temporary license suspension.
Option C: Fine up to $5,000 plus liability for all medical costs
$5,000 plus medical costs understates the penalty. Nevada law allows fines up to $10,000 — double this amount — and also includes lost wages liability, not just medical costs. This answer is partially correct but incomplete on both the fine amount and the scope of liability.
Option D: Warning letter only for first offense
A warning letter for a first offense is not the correct response to a workers' comp violation that results in employee injury. Nevada treats this as a serious offense with immediate financial penalties, not a warning system. This answer dangerously underestimates the legal consequences.
Memory Technique
Remember '10K + everything' — the fine is up to $10,000, and the contractor also owes the worker everything (medical + wages). Think of it as: 'No insurance = no protection — you pay the fine AND you play doctor and paymaster.'
More Nevada Questions
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Which Nevada building code edition is currently adopted for commercial construction in most Nevada jurisdictions?
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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?
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