When running a nonprofit organization in Reno, NV, one of the most common questions we hear is: Are nonprofits exempt from workers’ compensation? While nonprofit organizations serve unique missions, they are generally not exempt from workers’ compensation requirements. In Nevada, nonprofits, like other employers, are legally required to carry workers’ compensation insurance to protect their members from workplace injuries. Our Reno worker compensation lawyers often work with nonprofit leaders who want to make sure they comply with state laws while safeguarding their staff and volunteers and find more information about workers’ compensation.
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Nonprofits may operate differently from for-profit companies, but when protecting employees, the law views them similarly. Nonprofits must provide workers’ compensation coverage for paid employees injured at work. In Nevada, the law is clear: if you have even one employee, you must provide this insurance. The only potential exemptions might apply to unpaid volunteers, but even then, some organizations choose to extend coverage as an added layer of protection. It’s worth noting that while volunteers aren’t always entitled to workers’ compensation benefits, failing to insure them could result in liability if they get hurt during their service.
A few reasons nonprofits may need workers’ compensation include:
In Nevada, all employers, including nonprofits, must follow the Nevada Revised Statutes (NRS 616A-617) for workers’ compensation. Unlike other states, Nevada does not exempt nonprofits from this requirement. Even small nonprofits must ensure they have proper coverage for employees. The Nevada Department of Business and Industry offers guidelines to help businesses comply.
Another vital factor for nonprofits to consider is who is classified as a staff member under workers’ compensation laws. While paid employees are always covered by employment injury insurance, volunteers and independent contractors may not be. However, some states, including Nevada, allow organizations to opt in and expand this compensation coverage to their volunteers. Nonprofits should carefully evaluate whether to offer this coverage, as volunteers can be exposed to the same risks as regular employees, particularly in industries such as healthcare or community outreach.
When deciding who is covered, it’s important to assess:
Nonprofits that fail to comply with member compensation requirements in Nevada can face severe penalties. Failure to carry workers’ compensation insurance for eligible employees can result in fines, lawsuits, and other legal consequences. More critically, if an employee is injured on the job without insurance, the nonprofit could be held financially liable for the employee’s medical expenses, rehabilitation, and lost wages. This kind of liability could jeopardize the financial stability of a nonprofit, regardless of its size or mission.
Penalties for non-compliance may include:
In Nevada, nonprofits are typically required to carry workers’ compensation insurance for their paid employees. While volunteers and independent contractors may need special consideration, compliance is essential. At Kidwell & Gallagher, we help Reno nonprofits deal with workers’ compensation laws and ensure legal compliance. For guidance, contact a Personal Injury Lawyer at Kidwell & Gallagher Injury Lawyers, 403 Hill St., Reno, NV 89501, or call us at (775) 323-2667.
Craig W. Kidwell is the managing partner of Kidwell & Gallagher, Ltd., and exclusively represents injured workers in Nevada. Mr. Kidwell has been practicing workers’ compensation law in Nevada since 1999 and has acted as lead counsel on over 2,000 contested workers’ compensation claims. Mr. Kidwell represents injured workers in Nevada through all stages of Nevada’s complex worker’s compensation system. Craig regularly appears in all levels of Nevada’s administrative workers’ compensation system and has represented injured workers in Nevada’s districts and Supreme Court.
This page has been written, edited, and reviewed by a team of legal writers following our comprehensive editorial guidelines. This page was approved by Managing Partner, Craig W. Kidwell who has more than 20 years of legal experience as a personal injury attorney.