Imagine you’re a small business owner in Nevada, running a construction company. You work hard to keep your team paid and your projects on track. Now, picture a new law—AB 200—coming along that could make your costs skyrocket, even though your workers’ actual paychecks haven’t changed. That’s the situation Nevada is facing right now, and it’s why Nevada Policy is sounding the alarm.
What’s AB 200 All About?
It’s a proposal that changes how workers’ compensation benefits are calculated for construction workers who get injured on the job. Workers’ comp is like an insurance safety net—it helps cover medical bills and lost wages if someone gets hurt. Right now, those benefits are based on the worker’s earnings. Fair enough, right? But AB 200 wants to shake things up. It says that for construction workers, benefits should be based on the higher of either their real average monthly wage or the prevailing wage —even if they weren’t working on a government project when they got hurt.
The Problem with Prevailing Wages
Here’s where it gets tricky. The prevailing wage isn’t what most workers actually make. It’s a rate set by the government for public works projects, like building a school or a highway. In Nevada, these rates are already way higher than what people earn on private jobs—about 45% more, according to the numbers. For example, a roofer in the regular job market might make $18.62 an hour. But the prevailing wage for that same roofer? It’s $31.91 in Clark County and a whopping $41.58 in Washoe County. That’s a huge jump!
Now, AB 200 wants to use those higher prevailing wage numbers to figure out workers’ comp benefits, even for folks working on private projects—like fixing a roof on someone’s house. The problem? This doesn’t match what those workers were actually paid. It’s like saying, “Hey, you were earning $18 an hour, but we’re going to pretend you were making $41 an hour when we calculate your benefits.” Sounds generous, but who’s footing the bill?
Who Pays the Price?
That’s where Nevada’s businesses and taxpayers come in. If AB 200 passes, companies will have to pay much higher workers’ comp insurance premiums to cover these inflated benefits.
And guess what? Businesses don’t just eat those costs—they pass them on. That means higher prices for customers (like you and me) and more strain on taxpayers, since public projects could get pricier too. It’s a ripple effect: employers might hire fewer people or cut back on projects to save money, and Nevada could start looking less attractive to construction companies compared to other states.
Why AB 200 is a Bad Idea
Nevada Policy and others argue this isn’t fair or smart. But tying benefits to an artificial number like the prevailing wage, instead of what someone actually earns, just jacks up costs without making sense for most jobs. It’s like overpaying for a meal you didn’t order. And in a state where construction is a big deal, this could slow things down and hurt our economy.
In short, AB 200 sounds like it’s helping workers, but it’s really putting a heavy burden on businesses, taxpayers, and everyday Nevadans. That’s why it’s worth saying “no” to this bill—it’s a costly fix for a problem we don’t have.
Speak Up Now!
Want to make your voice heard? Use the form below from Nevada Policy’s action center to email committee members directly and tell them to vote NO on AB 200—it’s a quick way to help stop this bill!
