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- 83rd Session (2025)
Senate Bill No. 258 –Senators Nguyen, Cannizzaro, Stone, Titus,
Buck; Cruz -Crawford, Daly, Doñate, Dondero Loop,
Ellison, Krasner, Lange, Ohrenschall, Pazina, Rogich,
Scheible, Steinbeck and Taylor
Joint Sponsors: Assemblymembers Nguyen, Yurek, Hafen, Marzola,
Torres-Fossett; Anderson, Carter, Cole, Dalia, Edgeworth,
González, Gray, Gurr, Hardy, Jackson, Jauregui, Karris,
Kasama, Koenig, Monroe-Moreno, Moore, O’ Neill,
Orentlicher, Roth, Watts and Yeager
CHAPTER..........
AN ACT relating to industrial insurance; revising provisions
governing certain civil actions involving injured employees;
and providing other matters properly relating thereto.
Legislative Counsel’s Digest:
Existing l aw provides for the payment of compensation under industrial
insurance if, during the course of employment, an employee is injured or killed by a
workplace accident or occupational disease. (Chapters 616A -617 of NRS) Existing
law defines the term “compensa tion” to mean the money which is payable to an
employee or to the dependents of the employee as provided in existing law
governing industrial insurance, including benefits for funerals, accident benefits or
medical benefits and money for rehabilitative services. (NRS 616A.090, 617.050)
If the injury of an injured employee was caused under circumstances creating
legal liability in a person other than the employer or a person in the same employ,
existing law authorizes an injured employee or the dependents o f the employee,
under certain circumstances, to take proceedings to recover damages from that third
party. Existing law also authorizes the industrial insurer or Administrator of the
Division of Industrial Relations of the Department of Business and Indust ry, under
certain circumstances, to recover damages from that third party. Additionally, under
existing law, the industrial insurer or Administrator has a lien against the total
proceeds of any recovery by the injured employee or the dependents of the
employee. Existing law requires the amount of compensation to which the injured
employee or the dependents of the employee are entitled, including any future
compensation, to be reduced by the amount of damages or proceeds recovered.
(NRS 616C.215)
This bill provides that the maximum amount that the industrial insurer or
Administrator may recover for such a lien must be the lesser of: (1) the amount of
the lien, minus an amount equal to one -half of the reasonable costs incurred by the
injured employee or the dependents of the employee in p rocuring the recovery ; or
(2) one-third of the total amount of any recovery, inclusive of any attorney’s fees or
costs and the monetary value of any other property which is recovered , minus an
amount equal to one -half of the reasonable costs incurred by the injured employee
or the dependents of the employee in procuring the recovery.
This bill requires an itemized memorandum of any such reasonable costs
incurred by the injured employee or the dependents of the employee in procuring
the recovery to be verified by the injured employee, the dependents of the
employee or the attorney or representative of the injured employee or the
dependents of the employee, provided to the industrial insurer or Administrator and
subject to judicial review under certain circumstances. This bill also limits any
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offset to the amount of future compensation received by the injured employee or
dependents of the employee to: (1) an offset against payments of compensation that
are not accident benefits; and (2) a reduction in each such payment which does not
exceed one -third of the amount of the payment until the total amount of all such
reductions equals the net amount recovered by the injured employee or dependen ts
of the employee.
EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 616C.215 is hereby amended to read as
follows:
616C.215 1. If an injured employee or, in the event of his or
her death, the dependents of the employee, bring an action in tort
against his or her employer to recover payment for an injury which
is compensable pursuant to the provisions of chapters 616A to
616D, inclusive, or chapter 617 of NRS and, notwithstanding the
provisions of NRS 616A.020, receive payment from the employer
for that injury:
(a) The amount of compensation the injured employee or the
dependents of the employee are entitled to receive pursuant to the
provisions of chap ters 616A to 616D, inclusive, or chapter 617 of
NRS, including any future compensation, must be reduced by the
amount paid by the employer.
(b) The insurer, or in the case of claims involving the Uninsured
Employers’ Claim Account or a subsequent injury a ccount the
Administrator, has a lien upon the total amount paid by the
employer if the injured employee or the dependents of the employee
receive compensation pursuant to the provisions of chapters 616A to
616D, inclusive, or chapter 617 of NRS.
This sub section is applicable whether the money paid to the
employee or the dependents of the employee by the employer is
classified as a gift, a settlement or otherwise. The provisions of this
subsection do not grant to an injured employee any right of action in
tort to recover damages from the employer for the injury.
2. When an employee receives an injury for which
compensation is payable pursuant to the provisions of chapters
616A to 616D, inclusive, or chapter 617 of NRS and which was
caused under circumstances creating a legal liability in some person,
other than the employer or a person in the same employ, to pay
damages in respect thereof:
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(a) The injured employee, or in case of death the dependents of
the employee, may take proceedings against that perso n to recover
damages, but the amount of the compensation the injured employee
or the dependents of the employee are entitled to receive pursuant to
the provisions of chapters 616A to 616D, inclusive, or chapter 617
of NRS, including any future compensation, must be reduced by the
amount of the damages recovered, notwithstanding any act or
omission of the employer or a person in the same employ which was
a direct or proximate cause of the employee’s injury.
(b) If the injured employee, or in case of death the dependents of
the employee, receive compensation pursuant to the provisions of
chapters 616A to 616D, inclusive, or chapter 617 of NRS, the
insurer, or in case of claims involving the Uninsured Employers’
Claim Account or a subsequent injury account th e Administrator,
has a right of action against the person so liable to pay damages and
is subrogated to the rights of the injured employee or of the
employee’s dependents to recover therefor.
3. When an injured employee incurs an injury for which
compensation is payable pursuant to the provisions of chapters
616A to 616D, inclusive, or chapter 617 of NRS and which was
caused under circumstances entitling the employee, or in the case of
death the dependents of the employee, to receive proceeds under his
or her employer’s policy of uninsured or underinsured vehicle
coverage:
(a) The injured employee, or in the case of death the dependents
of the employee, may take proceedings to recover those proceeds,
but the amount of compensation the injured employee or the
dependents of the employee are entitled to receive pursuant to the
provisions of chapters 616A to 616D, inclusive, or chapter 617 of
NRS, including any future compensation, must be reduced by the
amount of proceeds received.
(b) If an injured employe e, or in the case of death the
dependents of the employee, receive compensation pursuant to the
provisions of chapters 616A to 616D, inclusive, or chapter 617 of
NRS, the insurer, or in the case of claims involving the Uninsured
Employers’ Claim Account or a subsequent injury account the
Administrator, is subrogated to the rights of the injured employee or
the dependents of the employee to recover proceeds under the
employer’s policy of uninsured or underinsured vehicle coverage.
The insurer and the Administrator are not subrogated to the rights of
an injured employee or the dependents of the employee under a
policy of uninsured or underinsured vehicle coverage purchased by
the employee.
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(c) Any provision in the employer’s policy of uninsured or
underinsured vehicle coverage which has the effect of:
(1) Limiting the rights of the injured employee or the
dependents of the employee to recover proceeds under the policy
because of the receipt of any compensation pursuant to the
provisions of chapters 616A to 6 16D, inclusive, or chapter 617 of
NRS;
(2) Limiting the rights of subrogation of the insurer or
Administrator provided by paragraph (b); or
(3) Excluding coverage which inures to the direct or indirect
benefit of the insurer or Administrator,
is void.
4. In any action or proceedings taken by the insurer or the
Administrator pursuant to this section, evidence of the amount of
compensation, accident benefits and other expenditures which the
insurer, the Uninsured Employers’ Claim Account or a subsequent
injury account have paid or become obligated to pay by reason of
the injury or death of the employee is admissible.
If in such action or proceedings the insurer or the Administrator
recovers more than those amounts, the excess must be paid to the
injured employee or the dependents of the employee.
5. [In] Except as otherwise provided in subsection 7, in any
case where the insurer or the Administrator is subrogated to the
rights of the injured employee or of the employee’s dependents as
provided in subsection 2 or 3, the insurer or the Administrator has a
lien upon the total proceeds of any recovery from some person other
than the employer, whether the proceeds of such recovery are by
way of judgment, settlement or otherwise. The injured employee, or
in the case of his or her death the dependents of the employee, are
not entitled to double recovery for the same injury, notwithstanding
any act or omission of the employer or a person in the same employ
which was a direct or proximate cause of the employee’s injury.
6. [The] Except as otherwise provided in subsection 7, the lien
provided for pursuant to subsectio n 1 or 5 includes the total
compensation expenditure incurred by the insurer, the Uninsured
Employers’ Claim Account or a subsequent injury account for the
injured employee and the dependents of the employee.
7. For a lien provided for pursuant to subsection 5:
(a) The maximum amount which the insurer or Administrator
may recover must be the lesser of:
(1) The amount of the lien , as reduced pursuant to
paragraph (b); or
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(2) One-third of the total amount recovered from the person
other than the employer or person in the same employ , as reduced
pursuant to paragraph (b). As used in this subparagraph, “total
amount recovered ” means the total proceeds described in
subsection 5, including, without limitation, any attorney’s fees or
costs and the monetary value of any virtual currency, securities,
real property, personal property or intellectual property which is
part of the judgment, settlement or other means of recovery, as
applicable, as calculated on the date on which the judgment,
settlement or other document providing for the other means of
recovery, as applicable, is executed.
(b) The maximum amount which the insurer or Administrator
may recover pursuant to paragraph (a) must be reduced by an
amount equal to one -half of the reasonable costs incurred by the
injured employee, or in the case of death the dependents of the
employee, in prosecuting or settling the claim against a person
other than the employer or person in the same employ . An
itemized memorandum of any such reasonable costs:
(1) Must be verified by the injured employee , the
dependents of the employee or the attorney or representative of the
injured employee or the dependents of the employee and provided
to the insurer or Administrator.
(2) Is subject to judicial review in a court of competent
jurisdiction, if a petition is filed within 30 days after the date on
which the insurer or Administrator receives a verified itemized
memorandum provided pursuant to subparagraph (1).
(c) If the in surer or Administrator imposes an offset to the
amount of future compensation that the injured employee, or in
the case of death the dependents of the employee, is entitled to
receive:
(1) Such an offset may be applied only against payments of
compensation that are not accident benefits; and
(2) Each individual payment to which the offset applied
must be reduced by not more than one -third of the amount
otherwise owed until the total amount of all such reductions
equals the net amount recovered by the injured employee, or in the
case of death the dependents of the employee, from the person
other than the employer or person in the same employ. As used in
this subparagraph, “net amount recovered” means an amount
equal to the monetary value of the total amo unt recovered , as
defined in subparagraph (2) of paragraph (a), minus:
(I) The maximum amount which the insurer or
Administrator may recover pursuant to paragraph (a); and
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(II) The amount of any attorney’s fees.
8. An injured employee, or in the case of death the dependents
of the employee, or the attorney or representative of the injured
employee or the dependents of the employee, shall notify the
insurer, or in the case of claims involving the Uninsured Employers’
Claim Account or a subsequent i njury account the Administrator, in
writing before initiating a proceeding or action pursuant to this
section.
[8.] 9. Within 15 days after the date of recovery by way of
actual receipt of the proceeds of the judgment, settlement or
otherwise:
(a) The injured employee or the dependents of the employee, or
the attorney or representative of the injured employee or the
dependents of the employee; and
(b) The third-party insurer,
shall notify the insurer, or in the case of claims involving the
Uninsured E mployers’ Claim Account or a subsequent injury
account the Administrator, of the recovery and pay to the insurer or
the Administrator, respectively, the amount due pursuant to this
section together with an itemized statement showing the distribution
of the total recovery. The attorney or representative of the injured
employee or the dependents of the employee and the third -party
insurer are jointly and severally liable for any amount to which an
insurer is entitled pursuant to this section if the attorney,
representative or third -party insurer has knowledge of the lien
provided for in this section.
[9.] 10. An insurer shall not sell its lien to a third -party insurer
unless the injured employee or the dependents of the employee, or
the attorney or represent ative of the injured employee or the
dependents of the employee, refuses to provide to the insurer
information concerning the action against the third party.
[10.] 11. In any trial of an action by the injured employee, or in
the case of his or her death by the dependents of the employee,
against a person other than the employer or a person in the same
employ, the jury must receive proof of the amount of all payments
made or to be made by the insurer or the Administrator. The court
shall instruct the jury substantially as follows:
Payment of workmen’s compensation benefits by the
insurer, or in the case of claims involving the Uninsured
Employers’ Claim Account or a subsequent injury account
the Administrator, is based upon the fact that a compensable
industrial accident occurred, and does not depend upon blame
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or fault. If the plaintiff does not obtain a judgment in his or
her favor in this case, the plaintiff is not required to repay his
or her employer, the insurer or the Administrator any amount
paid to the plaintiff or paid on the behalf of the plaintiff by
the plaintiff’s employer, the insurer or the Administrator.
If you decide that the plaintiff is entitled to judgment
against the defendant, you shall find damages for the plaintiff
in accordance wi th the court’s instructions on damages and
return your verdict in the plaintiff’s favor in the amount so
found without deducting the amount of any compensation
benefits paid to or for the plaintiff. The law provides a means
by which any compensation benefits will be repaid from your
award.
[11.] 12. To calculate an employer’s premium, the employer’s
account with the private carrier must be credited with an amount
equal to that recovered by the private carrier from a third party
pursuant to this section, less the private carrier’s share of the
expenses of litigation incurred in obtaining the recovery, except that
the total credit must not exceed the amount of compensation
actually paid or reserved by the private carrier on the injured
employee’s claim.
[12.] 13. As used in this section, “third -party insurer” means
an insurer that issued to a third party who is liable for damages
pursuant to subsection 2, a policy of liability insurance the proceeds
of which are recoverable pursuant to this section. The t erm includes
an insurer that issued to an employer a policy of uninsured or
underinsured vehicle coverage.
Sec. 2. 1. The amendatory provisions of this act apply to
any:
(a) Action or proceeding initiated pursuant to or which is subject
to the provisi ons of NRS 616C.215, as that section existed before
the effective date of this act, or as amended by section 1 of this act,
in which a final judgment, settlement or other disposition has not
been entered by the effective date of this act.
(b) Claim for compensation pursuant to chapters 616A to 616D,
inclusive, or 617 of NRS, which is open on or filed on or after the
effective date of this act.
2. As used in this section, “compensation” has the meaning
ascribed to it in NRS 616A.090 or 617.050, as applicable.
Sec. 3. This act becomes effective upon passage and approval.
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