2026 Nevada Revised StatutesChapter 616D – Industrial Insurance: Prohibited Acts; Penalties; ProsecutionNRS 616D.120 Administrative fines and benefit penalties for certain violations; powers of Administrator; revocation or withdrawal of certificate of self-insurance or registration as third-party administrator; claim against bond for payment of administrative fines or benefit penalties.

Statutory Text

Nevada Revised Statute 616D.120 sets up a system of fines and financial penalties for insurers, employers, and other organizations that mistreat injured workers during the workers’ compensation process. The law is designed to protect claimants from being taken advantage of when they are at their most vulnerable.

The statute identifies several behaviors that trigger mandatory penalties. If an insurer or employer talks an injured worker out of reporting an injury, pressures them into accepting a settlement that is less than fair, or refuses to pay compensation that has already been awarded by a judge or hearing officer, the law requires the Administrator to step in. The same applies when an organization simply ignores a claim entirely or forces a worker to go through lengthy legal proceedings just to collect money they were already owed.

When one of these serious violations is found, the Administrator must impose a fine of $1,500 for a first offense. A second or later offense brings a mandatory fine of $15,000. On top of those fines, the guilty party usually has to pay a benefit penalty directly to the injured worker. That penalty generally falls between $17,000 and $120,000, depending on how much harm the worker suffered and whether the organization has a history of similar violations. If the violation only involved a small late payment under $500 or a payment that was no more than 14 days overdue, the penalty drops to $3,000.

For violations that are less severe, the Administrator has more flexibility. A notice of correction can be issued for minor problems, giving the organization a chance to fix the issue. Repeat minor violations or more serious ones can result in fines up to $375 for a first offense and up to $3,000 for repeat offenses. A plan of corrective action can also be ordered.

The benefit penalty money belongs to the injured worker and must be paid directly to them within 15 days of the Administrator’s decision. If the worker passes away before receiving the payment, the money goes to their estate. Importantly, receiving a benefit penalty does not reduce any other workers’ compensation benefits the claimant is entitled to.

Organizations that rack up two or more fines of $1,000 or more in a single year risk losing their certification to operate as a self-insured employer or as a registered third-party administrator. Fraud-related violations can bring an additional fine of up to $15,000 if the Attorney General’s office declines to pursue criminal charges.

NV Rev Stat § 616D.120 – Last Verified February 2026

Plain English Explanation

Nevada Revised Statute 616D.120 sets up a system of fines and financial penalties for insurers, employers, and other organizations that mistreat injured workers during the workers’ compensation process. The law is designed to protect claimants from being taken advantage of when they are at their most vulnerable.

The statute identifies several behaviors that trigger mandatory penalties. If an insurer or employer talks an injured worker out of reporting an injury, pressures them into accepting a settlement that is less than fair, or refuses to pay compensation that has already been awarded by a judge or hearing officer, the law requires the Administrator to step in. The same applies when an organization simply ignores a claim entirely or forces a worker to go through lengthy legal proceedings just to collect money they were already owed.

When one of these serious violations is found, the Administrator must impose a fine of $1,500 for a first offense. A second or later offense brings a mandatory fine of $15,000. On top of those fines, the guilty party usually has to pay a benefit penalty directly to the injured worker. That penalty generally falls between $17,000 and $120,000, depending on how much harm the worker suffered and whether the organization has a history of similar violations. If the violation only involved a small late payment under $500 or a payment that was no more than 14 days overdue, the penalty drops to $3,000.

For violations that are less severe, the Administrator has more flexibility. A notice of correction can be issued for minor problems, giving the organization a chance to fix the issue. Repeat minor violations or more serious ones can result in fines up to $375 for a first offense and up to $3,000 for repeat offenses. A plan of corrective action can also be ordered.

The benefit penalty money belongs to the injured worker and must be paid directly to them within 15 days of the Administrator’s decision. If the worker passes away before receiving the payment, the money goes to their estate. Importantly, receiving a benefit penalty does not reduce any other workers’ compensation benefits the claimant is entitled to.

Organizations that rack up two or more fines of $1,000 or more in a single year risk losing their certification to operate as a self-insured employer or as a registered third-party administrator. Fraud-related violations can bring an additional fine of up to $15,000 if the Attorney General’s office declines to pursue criminal charges.

Frequently Asked Questions About NRS 616D.120

What happens if my workers’ compensation insurer refuses to pay a settlement or award in Nevada?

Under NRS 616D.120, refusing to pay compensation that has already been ordered by a hearing officer, appeals officer, or court is a serious violation. The Administrator is required to impose a fine of $1,500 for a first offense and $15,000 for repeat offenses. On top of that, the insurer can be ordered to pay you a benefit penalty ranging from $17,000 to $120,000 depending on the harm you suffered. If the payment was only slightly late or involved a small amount under $500, the penalty is $3,000. These penalties must be paid directly to you within 15 days of the Administrator’s decision.

What is a benefit penalty in Nevada workers’ compensation and who receives it?

A benefit penalty is a financial punishment paid directly to an injured worker when an insurer, employer, or administrator commits certain serious violations, like pressuring a claimant into a lowball settlement or refusing to process a claim. The penalty amount falls between $17,000 and $120,000 in most cases, and it is separate from any workers’ compensation benefits you were already owed. Receiving a benefit penalty does not reduce your other compensation. If the injured worker dies before the payment is made, the money is paid to their estate instead.

Can an insurer lose its license for violating workers’ compensation rules in Nevada?

Yes. Under this statute, an insurer or third-party administrator that accumulates two or more fines of $1,000 or more within a single year can have that record used as grounds to revoke their certification. The Commissioner has the authority to withdraw a certificate to operate as a self-insured employer or as a registered third-party administrator after a hearing confirms the violations. This means repeated bad behavior puts an organization’s ability to operate in Nevada at serious risk.

What qualifies as an illegal attempt to pressure an injured worker into a low settlement in Nevada?

The statute specifically prohibits any effort to convince an injured worker to settle for less than a reasonable amount, whether or not a hearing or appeal is already pending. It also covers situations where someone is pressured to accept less than what a court or hearing officer has already determined they are owed. These actions are treated as serious violations that trigger mandatory fines and benefit penalties, not just discretionary ones.

How long does an insurer have to pay a workers’ compensation settlement or award in Nevada?

The deadlines depend on the type of decision. For a written settlement agreement or stipulation, payment must be made within 10 days. For a decision issued by a court, hearing officer, appeals officer, or the Division, the deadline is 30 days unless a stay has been granted. If a stay is later lifted, payment must follow within 10 days after that. Missing these deadlines without justification is a violation that can result in both administrative fines and a benefit penalty paid directly to the injured worker.