
When a workers’ compensation insurer ignored a Hearing Officer’s order and delayed court-mandated benefits, Shook & Stone escalated the matter directly to the Nevada Division of Industrial Relations. Through attorney-led enforcement of Nevada’s benefit-penalty statutes, we secured the statutory maximum $120,000 penalty, paid directly to the injured worker—protecting his financial stability and restoring accountability to the system.
The Narrative
Problem: Systemic Friction & Insurer Non-Compliance
After a July 2024 workplace injury, the insurer repeatedly failed to comply with a Hearing Officer’s Decision and Order requiring timely action on medical care and benefits. Despite clear statutory deadlines under NRS 616D.120, the insurer delayed compliance for weeks—leaving the injured worker without ordered relief and effectively daring enforcement.
This wasn’t a paperwork error. DIR records showed dozens of prior violations by the same claims administrator, signaling a pattern of delay that financially harms injured Nevadans.
Action: Attorney-Led Enforcement in Nevada
Rather than allowing the delay to continue, Shook & Stone filed a formal complaint with the Nevada Division of Industrial Relations, demanding penalties for unreasonable delay and non-compliance.
Our attorneys:
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Forced a full DIR investigation and audit of the claim
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Applied Nevada’s benefit-penalty point system tied to prior violations and compensation owed
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Leveraged the statutory cap to maximize the client’s recovery
This was not a settlement negotiation—it was regulatory enforcement.
Result: $120,000 Paid Directly to the Client
DIR found the insurer in violation of NRS 616D.120(1)(c)(2) and imposed the maximum allowable benefit penalty of $120,000, payable directly to the injured worker.
Net-First Advocacy Impact:
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The award was not subject to medical liens
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It preserved the client’s long-term benefit eligibility
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It imposed real financial consequences on repeat insurer misconduct
This result sent a clear message: Nevada law has teeth when enforced by trial-ready attorneys.