NAC616B.786. Coverage of sole proprietor acting as subcontractor or principal contractor.

     1. A sole proprietor acting as a subcontractor in this State who is licensed pursuant to chapter 624 of NRS shall be deemed to receive $500 per month in wages. A sole proprietor acting in alternating roles as a principal contractor and subcontractor shall be deemed to receive $500 per month in wages. The type of license issued to the sole proprietor pursuant to chapter 624 of NRS does not affect the coverage or deemed wage required.

     2. A sole proprietor acting only as a principal contractor may be relieved of the requirement of maintaining coverage for himself or herself by submitting written notice to the private carrier which insures him or her that he or she is acting only as a principal contractor. If the private carrier determines that the sole proprietor is acting only as a principal contractor, the private carrier shall terminate his or her deemed wage effective on the date of receipt of the written notice. The termination of the deemed wage must not be made retroactive to a date before receipt of the written notice by the private carrier. If, after the termination of the deemed wage, the private carrier determines that the sole proprietor was at any time acting as a subcontractor, the private carrier shall reinstate the deemed wage effective on the date on which it was terminated, but in no case may it be made retroactive for more than 3 years or to the date of the last audit, whichever is more recent. If a sole proprietor who was determined to be acting only as a principal contractor at the inception of his or her policy with a private carrier acts at any time thereafter as a subcontractor or in alternating roles as a principal contractor and subcontractor, his or her deemed wage becomes effective on the date of his or her first subcontract, but in no case may it be made retroactive for more than 3 years or to the date of the last audit, whichever is more recent.

     3. If a sole proprietor acting as a subcontractor provides coverage for his or her employees but fails to secure and maintain coverage for himself or herself, the principal contractor is responsible for the payment of premiums for the sole proprietor during the term of the contract.

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