What Is Subrogation in Nevada Workers’ Compensation Law?
How Senate Bill 258 Helps Injured Workers Keep More of Their Settlement
If you’ve been injured at work in Nevada, understanding subrogation in Nevada workers’ compensation law is essential before pursuing a lawsuit against a third party responsible for your injury. Subrogation allows your workers’ compensation insurer to claim part of your settlement to recover benefits they paid. This process can significantly affect how much money you ultimately take home.
In this article, we’ll explain how subrogation works under Nevada’s workers’ compensation system, why it matters for your injury claim, and how the recent passage of Senate Bill 258 (2025) protects your rights and helps you keep more of your settlement.
Understanding Subrogation in Nevada Workers’ Compensation Law
Subrogation allows an insurance company to seek reimbursement from any third-party settlement related to the injury it covered. In a workers’ compensation case, this means that if you sue someone else (not your employer) for the injury, your insurer may try to recover what they paid by placing a lien on your award.
Example:
A Reno delivery driver is rear-ended while working. Workers’ comp pays for their treatment and time off. When the driver sues the at-fault party and settles, the insurer may file a lien to take back what they paid.
Before 2025, Nevada had few restrictions on how much insurers could recover—often leaving injured workers with only a fraction of their total award. That changed with SB 258.
Why Subrogation in Nevada Workers’ Comp Cases Impacts Your Settlement
Subrogation can significantly reduce your financial recovery—especially if your workers’ compensation insurer demands reimbursement for everything it paid out.
When you’re dealing with medical bills, lost wages, and legal expenses, subrogation can mean the difference between financial relief and continued hardship.
How Senate Bill 258 Reformed Subrogation in Nevada Workers’ Compensation Law
Passed in 2025 and effective May 31, Senate Bill 258 overhauled subrogation in Nevada workers’ compensation law. The bill caps what insurance companies can recover, mandates fairness in lien offsets, and prevents jury bias during third-party claims.
Here’s what changed:
Lien Recovery Capped at One-Third of Settlement
Workers’ compensation liens are now limited to the lesser of:
- The full lien amount
- One-third (33%) of your total third-party recovery, including legal fees
This ensures that you retain at least two-thirds of your award.
Additional Deductions for Legal Expenses
If the cap applies, the lien is further reduced by 50% of your litigation costs, as verified by a CPA. This prevents insurers from profiting off your legal efforts.
Judges Can Review and Adjust Lien Fairness
Courts now have the discretion to ensure that liens are reasonable and fair, especially in complex or high-expense cases.
Jurors Can’t Be Told About Workers’ Comp Payments
To avoid reducing verdicts due to insurance coverage, SB 258 prohibits disclosing insurance payments to juries.
Retroactive Protection for Pending Cases
These updates apply to all relevant cases still pending as of May 31, 2025—so older claims may also benefit.
You can read the full text of Senate Bill 258 here.
What SB 258 Means for Injured Workers Facing Subrogation in Nevada
If you’re pursuing a third-party lawsuit after a workplace injury, these changes mean you now:
- Keep more of your final settlement
- Have added protection from overreaching insurance claims
- Benefit from a more transparent and fair system
These reforms are especially meaningful for working families in Reno, Sparks, and across Northern Nevada, where medical costs and lost income can have long-lasting effects.
Why Legal Help Matters in Subrogation Cases Under Nevada Workers’ Compensation Law
Even with the new rules in place, subrogation remains complex. Calculating the cap, verifying legal expenses, and dealing with aggressive insurers requires legal experience.
At Attorney Jay Short, has helped injured Nevadans navigate the subrogation process for years—and now we’re applying the protections of SB 258 to help our clients maximize recovery and minimize frustration.
If you’re unsure how subrogation might affect your case, we can help.
Contact Jay Short – Your Workers’ Compensation Advocate
If you’re struggling to obtain the workers’ compensation benefits you deserve or facing a lien on your settlement, Jay Short, Attorney at Law, is here to help. Call us anytime at (775) 786-2006 to schedule a free consultation, day or night, or reach out online. We serve clients in Reno, Sparks, Carson City, and all of Northern Nevada, and we’re ready to help you keep what you’ve rightfully earned.
Want to understand Nevada’s workers’ compensation system in more detail? Visit the Nevada Division of Industrial Relations for official resources and updates.