Nevada classifies gig workers using the ABC test under Nevada Revised Statutes Chapter 612 for unemployment insurance, requiring all three prongs: (A) freedom from employer control, (B) work outside the hiring entity’s usual business, and (C) engagement in an independently established trade.​
Classification Criteria
Gig workers like rideshare drivers or delivery personnel often fail the ABC test if platform algorithms dictate routes/schedules (violating A), services form the core business (violating B), or workers lack separate businesses (violating C), pushing reclassification as employees entitled to minimum wage, overtime, and benefits.​
Penalties for Misclassification
Employers face civil fines up to $5,000 per worker (higher for repeats), back taxes, unemployment contributions, treble damages for wage violations, and lawsuits; platforms bear joint liability with look-back periods.​
Nevada’s strict standards exceed federal economic realities test, aiming to curb misclassification in rideshare/delivery amid 2025 gig expansions.
SOURCES
[1](https://gobravvo.com/insights/industry-insights/gig-economy-2025-new-state-laws-shaping-independent-contractor-work/)
[2](https://www.postercompliance.com/blog/labor-law-compliance-for-gig-workers-what-employers-need-to-know/)
[3](https://www.acelawgroup.com/blog/2023/12/the-gig-economy-and-employment-law-what-employers-need-to-know/)
[4](https://www.workforcehub.com/hr-laws-and-regulations/nevada/work-and-labor-classification-laws-in-nevada/)
[5](https://www.fplglaw.com/insights/classification-of-gig-economy-workers-rideshare-companies-fight-against-ab5/)
