In Nevada, calling a worker a 1099 contractor does not by itself get you out of workers compensation. What matters is whether the person is really an independent contractor under Nevada's control test, not the tax form you use. If you direct how the work gets done, that worker can be treated as your employee for comp, and you can be on the hook if they are hurt while uninsured.
Who this is for: Nevada owners who pay some or all of their workers on a 1099 and want to know whether they still need coverage.
The short version
- A 1099 label does not decide coverage; Nevada looks at the real working relationship.
- Nevada uses a control test: you control only the result, not the methods, points to a true contractor.
- Nevada does not use the strict ABC test that some states apply to workers comp.
- A separate, licensed business that works for many clients is more likely a true contractor.
- In construction, a general contractor is on the hook for an uninsured subcontractor's injured workers.
How Nevada decides who is really a contractor
Nevada's core test for workers comp is right of control. A person is an independent contractor if they render a service for a set result and you control only the result, not the means and methods used to reach it. On top of that, Nevada uses an independent-enterprise screen: someone who holds themselves out as a separate business, holds a license in their own name, and owns or leases their own tools or space looks much more like a true contractor. Importantly, Nevada does not apply the rigid ABC test to comp, so do not assume a rule you read about in another state applies here.
| Points toward employee | Points toward true contractor |
|---|---|
| You set the hours and the methods | They control how the work gets done |
| They work only for you | They serve many clients |
| You supply the tools and materials | They own or lease their own tools |
| No separate business or license | Separate business, licensed in their own name |
| Ongoing, open-ended work | A defined project for a set result |
The construction trap
Construction has an extra layer. Nevada is a statutory-employer state, which means a principal or general contractor is treated as the employer of a subcontractor's workers if that subcontractor is uninsured. So even if your subs are genuinely 1099 businesses, an injured worker from an uninsured sub can become your claim, and your policy can be charged for them at audit. The escape hatch is narrow: it generally applies only when the sub is a bona fide separate, licensed enterprise that is not doing the same trade you do. The safe practice is to collect a current certificate of coverage from every sub before they start.
A Las Vegas example
Illustrative, not a quote. A Las Vegas trucking company pays several drivers on 1099s but sets their routes, schedules, and trucks. Because the company controls how the work is done, those drivers look like employees under Nevada's control test, so treating them as exempt contractors is risky. The company either brings the drivers onto a policy or, for owner-operators who run their own licensed businesses and own their trucks, collects proof of coverage before dispatching them. See our workers comp for trucking and transportation page.
Real questions Nevada owners ask
If my workers are 1099, do I still need workers comp in Nevada?
Maybe. The 1099 label does not decide it. Nevada looks at whether you control how the work is done. If you do, the worker can be your employee for comp and must be covered.
What test does Nevada use for independent contractors?
A right-of-control test. If you control only the result and not the means and methods, that points to a true contractor. Nevada also asks whether the person runs a separate, licensed business.
Does Nevada use the ABC test for workers comp?
No. Nevada does not apply the strict ABC test to workers comp. Do not assume an ABC rule you read about in another state governs coverage here.
Can I be liable for an injured worker from an uninsured subcontractor?
In construction, yes. Nevada treats a general contractor as the employer of an uninsured sub's workers, so an injury there can become your claim and can be charged to your policy.
How do I protect myself when I use subcontractors?
Collect a current certificate of coverage from every subcontractor before they start work, and keep it on file. It is the simplest way to avoid picking up their payroll at audit.
What happens if I misclassify an employee as a 1099?
If a misclassified worker is hurt while uninsured, you can face back premiums, fines, and a direct lawsuit, because the state will treat them as the employee they really were.
Does giving a worker a 1099 and a written contract settle it?
No. A contract helps show intent, but Nevada looks at the real relationship. If you direct the daily work, a form and a contract will not turn an employee into a contractor.
Why Nevada owners choose Morrow
- We shop the right market for you. In Nevada you buy from private insurers on the open market; the state sold off its old fund in 2000, so there is no government fund to buy from. If no carrier will take you, a state-backed pool (the assigned-risk plan) still has to cover you, so we can shop your rate freely and always have a fallback for hard-to-place work.
- We catch pricing mistakes. Your price depends heavily on the category your work falls into for pricing (the class code). Put people in the wrong category and you overpay for years. We review your payroll and classifications before you buy.
- Proof of coverage, fast. Need a certificate (proof of coverage) for a general contractor or a landlord before Monday? We turn those around the same business day for most carriers.
- We help lower the score that drives your price. Insurers give you a score based on your past claims that raises or lowers your cost (the experience modification rate). We review it each year, flag errors, and connect you with return-to-work and safety resources that bring it down.
- Real people when a claim happens. When someone gets hurt, we stay involved through the life of the claim, not just at renewal.
Related Nevada guides
Every Nevada business is set up a little differently. These companion guides answer the same question for other situations, plus the national explainers behind the terms used here.
- Business insurance in Nevada (start here)
- Workers comp: the owner's overview
- I own an LLC: do I need workers comp?
- I'm a sole proprietor: do I need workers comp?
- I own a corporation (C-corp or S-corp): do I need it?
- We're a partnership: do we need workers comp?
- We're a nonprofit: do we need workers comp?
- Only part-time or seasonal staff: do I need it?
- I only employ family: do I need workers comp?
- Remote or out-of-state staff: do I need coverage?
- What happens if I don't carry workers comp?
- How much does workers comp cost?
- How do I get workers comp (even if turned down)?
- What insurance do I need for a contractor license?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- Do I need workers comp for 1099 contractors?
- What is a ghost workers comp policy?
- Nevada trucking workers comp
This guide is general information, not legal advice. Nevada rules and penalty amounts can change, so verify current requirements with the Nevada Division of Industrial Relations or a licensed advisor before you rely on them. Last updated: July 2026.