Senate Bill 258, introduced on February 27, 2025, is poised to significantly alter Nevada's workers' compensation landscape by reforming how insurers recover benefits from third-party settlements. This bill addresses longstanding concerns over the fairness of lien calculations and aims to ensure that injured workers receive a more equitable share of their recoveries.
Key Provisions of Senate Bill 258
The bill also introduces some major changes to Nevada Revised Statutes (NRS) 616C.215, the law governing workers' compensation liens:
Lien Cap: The lien amount is limited to the lesser of the full amount of the lien or one-third of the total recovery from the third party, including attorney's fees and costs.
Reduction for Litigation Expenses: If the one-third cap applies, the lien is further reduced by 50% of the reasonable expenses incurred by the injured worker in prosecuting or settling the claim. These expenses must be verified by a certified public accountant and are subject to judicial review.
Exclusion from Jury Consideration: The bill prohibits juries from receiving information about any payments made by insurers or administrators related to workers' compensation claims during trials. This change aims to prevent potential bias and ensure that jury decisions are based solely on the facts of the case.
Implications for Stakeholders
Injured Workers: Senate Bill 258 is expected to benefit injured workers by allowing them to retain a larger portion of their recovery, thereby providing more financial support during their recovery period.
Workers' Compensation Insurers: While insurers may recover a smaller percentage of the total settlement or judgment, the bill provides a clear and structured framework for lien calculations, potentially reducing disputes and litigation costs.
Employers: Employers may experience a stabilization in workers' compensation insurance premiums, as the reforms aim to create a more predictable and equitable system.
Senate Bill 258 would balance the workers' compensation system. By imposing limits on liens insurers can collect and reducing the costs workers have to pay back, it will give injured workers a fairer deal. While it’s still being reviewed, this bill has the potential to improve how workers' compensation claims are handled
If you would like to understand how Senate Bill 258 could affect your claim, consulting with a workers' compensation lawyer can help clarify the complexities of the new bill.