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ARTICLE · 02 MAY 2025

Nevada Senate Proposes Limits On Workers' Compensation Liens

Wilson Elser Moskowitz Edelman & Dicker LLP
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In fall 2024, Nevada's Supreme Court overruled 38 years of precedent concerning how workers' compensation liens are resolved in personal injury claims.

United StatesLitigation, Mediation & Arbitration

In fall 2024, Nevada's Supreme Court overruled 38 years of precedent concerning how workers' compensation liens are resolved in personal injury claims. Nevada's Senate has now passed a bill to limit the amounts workers' compensation carriers can recover and provides a system to decide the lien amount. The bill now goes to the Assembly for consideration.

Background

As discussed in a prior article, from 1986 through fall 2024 the Breen formula that the Supreme Court created governed how injured workers and their workers' compensation carriers determine how much of a workers' compensation lien needed to be repaid after a personal injury recovery. AmTrust North America, Inc. v. Vasquez overruled Breen because the formula conflicted with NRS 616C.215 and did not work. "Here, the Breen formula failed to provide a net positive recovery for AmTrust, demonstrating that it is mathematically flawed and unworkable."

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