Nevada SB 317: Payroll Cap Increase and Loss Cost Shift

Nevada has updated how payroll is counted in workers compensation premium calculations. Senate Bill 317 introduces an increase to the payroll cap, the maximum amount of an individual employee’s wages that can be used to calculate premium.

Fast & Easy Highlights

Payroll cap increase: More wages per employee are subject to premium.
Loss costs adjustment: Rates are being recalibrated to reflect the expanded payroll base.
Net effect: Premium impact varies by account, but higher-wage risks will be more impacted than others.

What Changed

Effective 10/1/26, the per-employee payroll cap used in premium calculations for Nevada exposure is increasing from $36,000 to $98,433.60.

Container Box Example

For example, before SB 317, if an employee earned $80,000 per year, only the first $36,000 would be used in calculating the employer’s workers compensation premium. Under this new bill, the entire $80,000 salary is included in the premium calculation.

Also, loss costs are decreasing by 32.8%, following an increase earlier in the year. Regulators adjust accordingly to avoid over-collecting premium at the system level. However, that does not mean every employer sees a neutral outcome.

These changes will impact mostly employers with higher-wage roles or executive-heavy payrolls. The intent is to better align premium exposure with modern wage levels and improve system adequacy.

👉 Why it matters: More of higher-paid employees’ wages will be included, which can drive premium increases.

What Policyholders Can Do

Review your payroll: Identify higher-wage roles that may affect premium
Plan for variability: The impact on your premium will depend on your workforce and salary levels
Ensure accuracy: Accurate payroll reporting now helps avoid large audit adjustments later

What Agents Can Do

Get ahead: Start conversations with clients early and use real wage data to show expected premium impact.
Explain clearly: Keep it simple and use an example to help clients understand why premiums may change.
Check accuracy: Review payroll estimates closely before audit as small errors can lead to larger audit adjustments.

Reach out to your regional underwriter or our service team for support. We’re here to help.

To become an appointed agent, email [email protected].

BerkleyNet is a member of Berkley, whose member insurance companies are rated A+ (Superior), Financial Size Category XV by A.M. Best Company. We provide workers compensation insurance to a wide variety of businesses across the U.S. Our agents and clients use our online tools to easily quote and manage their policies and connect with our team. If an injury does occur, our claim specialists work to get employees back to health and back to work while responsibly managing the cost of claims.

Please note the information in this article should not be construed as legal advice or as a substitute for professional consulting services. This material is for general informational purposes only, and while reasonable care has been utilized in compiling this information, no warranty or representation is made as to accuracy or completeness. For insurance advice, please contact your licensed insurance agent.