Nevada Workers’ Compensation: Key 2026 Law Changes and What Injured Workers Need to Know

Nevada passed Senate Bill 317 (SB 317) in 2025, which requires the Division of Industrial Relations (DIR) to adopt an Official Disability Guidelines (ODG) Drug Formulary for workers’ compensation claims.

A drug formulary is a structured list of medications that are pre-approved for treatment. The goal is to promote evidence-based prescribing and reduce unnecessary delays.

Here’s what injured workers should know:

• The formulary was officially adopted in late 2025.
• Implementation will roll out in phases through July 1, 2027.
• It will standardize which medications are covered for non-emergency, outpatient treatment.
• Doctors and insurers will use the formulary to determine appropriate prescriptions.
• Non-formulary drugs may still be approved, but insurers can require additional medical justification or a formal review.

For injured workers, this means prescription approvals may follow a more structured process. While some medications may require extra steps, the system is intended to reduce disputes and align treatment with medical best practices.

Another major change under SB 317 affects how workers’ compensation insurance premiums are calculated.

Previously, Nevada limited premium calculations to the first $36,000 of an employee’s wages. That payroll cap kept premium costs lower for higher-wage earners.

Beginning October 1, 2026:

• The payroll cap will be eliminated.
• Employers will pay premiums based on an employee’s full wages.
• Some employers — especially those with higher-paid workers — may see increased premium costs.

This change primarily affects employers, not benefits directly. However, shifts in premium structure can influence how insurers approach underwriting and overall risk management within the system.

For injured workers, this is part of a broader effort to modernize how Nevada funds its workers’ compensation system.

The Nevada Division of Insurance has approved a 21.6% increase in workers’ compensation loss costs, effective March 1, 2026.

Loss costs are one of the key factors insurers use to price workers’ comp policies. When loss costs increase, it generally means claims are becoming more expensive overall.

The increase reflects:

• Rising claim severity
• Higher wage replacement payouts
• Increased medical treatment costs
• Broader structural adjustments within the system

While this change relates to insurance pricing, it may influence how carriers evaluate claims and manage risk.

For injured workers, it’s important to understand that market pressures can affect how closely claims are reviewed — making accurate documentation and strong advocacy even more important.

Nevada has also updated reporting and oversight requirements for insurers and third-party administrators (TPAs).

The Division of Industrial Relations has expanded its Claims and Regulatory Data System (CARDS) to improve tracking and compliance.

Key updates include:

• Expanded reporting requirements for insurers and TPAs
• More consistent data submission for claim activity
• Increased regulatory oversight for accuracy and compliance

These changes are designed to improve transparency and allow regulators to better monitor statewide workers’ compensation trends.

While these updates are administrative, they may affect how claims are documented and processed behind the scenes.

IIn late 2025, DIR released FAQs and guidance to clarify implementation of SB 317 and related reforms.

Topics include:

• Formulary notification requirements
• Prior authorization timelines
• Provider list updates
• Compliance enforcement authority

These clarifications help ensure that insurers and providers follow consistent procedures when managing workers’ compensation claims.

For most injured workers in Nevada, the core purpose of workers’ compensation — covering medical care, lost wages, and disability benefits — remain the same.

However, the 2026 reforms bring several practical changes:

• Prescription drug approvals will follow a more structured, evidence-based system.
• Insurers may adjust underwriting and risk management strategies due to premium and loss cost increases.
• Expanded reporting requirements may improve oversight of claims statewide.

While some changes affect employers more directly, they reflect a larger effort to strengthen and modernize Nevada’s workers’ compensation system.

As the framework evolves, injured workers should focus on:

• Seeking guidance if disputes arise
• Reporting injuries promptly
• Following medical treatment plans
• Keeping detailed documentation