Purpose
NCCI developed this resource page to provide information on Nevada SB 317 and its impact on the Nevada workers compensation payroll cap and premium calculations. This resource page is intended to support carriers, agents, brokers, employers, and other industry professionals with details on the updated payroll cap methodology, key effective dates, and potential operational considerations.
Background
Effective October 1, 2026, Nevada SB 317 changes how maximum payroll is determined by replacing the fixed $36,000 annual payroll cap per employee with an amount based on 12 times the state’s maximum average monthly wage, which may change each year.
The maximum average monthly wage is determined by the Nevada Department of Employment, Training and Rehabilitation (DETR) and published by the Nevada Department of Business and Industry, Division of Industrial Relations (DIR). NCCI has or will incorporate these statutory changes into its applicable manuals, rules, loss costs, rates, rating values, or other NCCI-maintained workers compensation infrastructure, as needed, through filings made with the Nevada Division of Insurance (DOI).
Frequently Asked Questions
For an overview and key points about Nevada SB 317, please review the following FAQs.
Effective October 1, 2026, SB 317 revises the payroll cap used in the Nevada workers compensation premium calculation. It replaces the prior fixed $36,000 annual payroll cap per employee for employees employed by an entity other than the state of Nevada, its agencies, or its political subdivisions. In its place, the payroll cap is to be updated each January 1 based on the state’s maximum average monthly wage. Employees with payroll falling below the payroll cap will continue to have the actual payroll amount (not limited by this maximum threshold) reflected in the premium calculation. Refer to the FAQ below for details on employees excluded from the new payroll cap.
The maximum annual payroll cap effective from October 1, 2026, to December 31, 2026, is $98,433.60, equal to 12 times the state’s maximum average monthly wage of $8,202.80. Changes to the payroll cap are to be made annually on January 1, based on a value determined by the Nevada DETR and published mid-year by the Nevada DIR.
Carriers, their data providers, agents, and brokers should be aware that Nevada’s payroll cap is no longer a fixed amount and may change over time. Reviewing available guidance and confirming the applicable payroll cap when writing business in Nevada will help promote accuracy and smoother audit outcomes.
Conversely, continuing to use the $36,000 cap after October 1, 2026, for policies or employees to which it does not apply would understate the premium for policies in which employee payrolls exceed that amount. The higher the insured payroll, the larger the potential audit adjustment and additional premium collection later if the $36,000 cap is incorrectly used.
Timely and accurate payroll reporting ensures that the data used in aggregate Financial Calls and ratemaking reflects the correct exposure to support loss cost and rate adequacy. Delays or inaccuracies in payroll reporting may affect frequency estimates and can result in larger audit adjustments. Additionally, accurate payroll reporting provides for premium accuracy.
The loss cost reduction that accompanies the new payroll cap is only appropriate when paired with payrolls reflecting the higher cap effective October 1, 2026. If the incorrect payroll cap is applied at inception, the initial premium may be understated, and the adjustment at audit could be substantial.
RMAPS® will reflect the revised payroll cap amounts established by SB 317 when generating premium estimates and binders for applicable policies.
Per the Workers Compensation Insurance Plan (WCIP), residual market applications for policies effective October 1, 2026, and later may be submitted through RMAPS® up to 60 days prior to the requested effective date.
Yes. Employees of the state of Nevada or any agency or political subdivision of the state continue to be subject to a $36,000 payroll cap unless they elect to use the payroll cap based on the state’s maximum average monthly wage. Other employee categories that remain subject to the $36,000 payroll cap are:
- Officers of private or quasi-public corporations and managers of limited-liability companies subject to NRS 616B.624
- Sole proprietors, working partners, and members of working associations subject to NRS 616A.210 and NRS 616B.659
No. The Nevada DOI has indicated that the payroll cap in effect on the policy’s effective date applies for the entire policy term, with no adjustment if a new payroll cap becomes effective mid-term. For example, for a one-year policy effective November 1, 2026, the $98,433.60 payroll cap will apply to all employees covered by this policy for the entire one-year policy term.
The change is expected to be premium-neutral on an overall statewide basis, with increased payroll exposure offset by the filed and approved corresponding decrease to loss costs and rates. However, there could be a meaningful impact on an individual policy basis, particularly if an employer's payroll differs significantly from the class average.
NCCI submitted and received approval of Item Filing 01-NV-2026—Revisions to Rules Related to Calculating Premium in Nevada, available on the Circulars page on ncci.com (Circular NV-2026-02 provides the announcement of Item 01-NV-2026, and Circular NV-2026-03 provides the approval of this item).
Detailed rules and manual content are available to users with appropriate authentication or subscription access to ncci.com.
This filing includes updates to the following rules and manuals:
NCCI’s Basic Manual for Nevada
- NCCI’s Basic Manual for Workers Compensation and Employers Liability Insurance for Nevada
- Rules for calculating the premium (Rule ID: BM-CHAN-R63AE)
- State payroll determination formulas, Table 2 for Code 7370, Code 9178, and Code 9179 (Rule ID: BM-PAYS-SCE3C)
- Premium for leased workers (Rule ID: BM-ELNV-P1424)
- NCCI’s Residual Market Manual for Workers Compensation and Employers Liability Insurance for Nevada
- Premium for leased workers (Rule ID: RM-NVPP-PCE42)
- NCCI’s Statistical Plan for Workers Compensation and Employers Liability Insurance
- Nevada state exception for Part 3-F-1—Payroll Exposure
NCCI submitted and received approval of the Voluntary Loss Costs and Assigned Risk Rates Law-Only Filing, effective October 1, 2026. The filing approval is available on the Circulars page on ncci.com (Circular NV-2026-06).
The filing includes:
- Revised loss costs and assigned risk rates
- Payroll adjustment factors by classification—for each job classification, the expected increase in average payroll reported to NCCI under the new $98,433.60 cap, relative to the prior $36,000 cap
Approved loss costs for the voluntary market and assigned risk rates for the residual market are posted on Nevada’s Rate Table Data page on ncci.com.
Experience and retrospective rating values were not updated for the Nevada law-only filing effective October 1, 2026. New values will be proposed with the next experience filing planned for March 1, 2027.
Detailed rate information is available to users with appropriate authentication or subscription access to ncci.com.
With the enactment of SB 317, NCCI filed a one-time adjustment to loss costs and rates to align with the increased payroll exposure base, which the Nevada DOI approved. The law-only filing isolates the impact of the payroll cap change. In contrast, the annual experience filing continues to reflect new emerging experience, actuarial projections, and other annual updates based on data reported to NCCI. The approved filing for the loss cost level increase of 21.6% effective March 1, 2026, was not impacted by the increase to the payroll cap specified in SB 317.
NCCI is working with the Nevada DOI on the filing date of the next annual experience filing and anticipates an effective date of March 1, 2027. The payroll cap effective January 1, 2027, is anticipated to be included in this filing.
Additionally, NCCI is working with the Nevada DOI to align its future experience filings with the annual January 1 payroll cap updates, with a new filing effective date of January 1, 2028, subject to Nevada DOI approval. NCCI will continue to evaluate timelines for future filings and communicate any changes to the industry with advance notice.
Yes. Experience rating modifications will be impacted once policies effective October 1, 2026, are included in the experience period used to calculate an employer’s experience rating modification. The July 1, 2028, rating effective dates are the earliest this would occur.
Additional analysis is underway, and NCCI will communicate any potential impacts.
Payroll capping can occur at various stages in the policy documentation process and across data reporting sources, including the insured, agent, and carrier, depending on operational considerations. Communication with the appropriate entity responsible for converting uncapped payroll to a limited basis is imperative to ensure accurate reporting of future payrolls and to keep the system in balance.
Please ensure that relevant systems reflect the payroll cap change from the prior fixed $36,000 cap to the new cap.