NAC616B.780. Establishment of employer-employee relationship; liability of principal contractor for premiums.

     1. An employer who hires a person to do work related to, or in furtherance of, his or her business operations that are insured by a private carrier is presumed to have established an employer-employee relationship between himself or herself and the person performing the work in the absence of a written contract between the two parties which establishes that no employer-employee relationship exists between the two parties, in accordance with chapters 616A to 617, inclusive, of NRS.

     2. If a subcontractor or independent contractor does not have an active policy with a private carrier, the principal contractor must be assessed premiums based on:

     (a) The payroll for the period of the contract with the subcontractor or independent contractor;

     (b) The appropriate classification for the work performed by the subcontractor or independent contractor; and

     (c) The experience modification factor of the principal contractor.

     3. A principal contractor may provide the complete payroll records of the employees of each uninsured subcontractor and independent contractor. Except as otherwise provided in this subsection, if the principal contractor does not provide the complete payroll records of the uninsured subcontractors and independent contractors, the full contract price shall be deemed to be the payroll for the employees of the subcontractors and independent contractors. If the contract is for labor and materials or labor and equipment and evidence is provided to the private carrier which indicates the portion of the contract price that is for labor, that amount may be deemed the payroll for the employees of the subcontractor or independent contractor. If such an amount is not indicated in the contract, the private carrier shall determine what portion of the contract price will be deemed the payroll for the employees of the subcontractor or independent contractor. In no case may the payroll used to calculate the premiums of the principal contractor be less than the portion of the contract price that is for labor.

     4. If a subcontractor or independent contractor has a policy with a private carrier but fails to pay the proper premiums, the principal contractor is liable for the amount of any unpaid premiums based on the rate and modification factor for premiums of the subcontractor or independent contractor.

     (Added to NAC by Div. of Industrial Relations by R112-98, 12-18-98, eff. 7-1-99)