diff --git a/core/src/main/java/com/google/errorprone/bugpatterns/UnusedVariable.java b/core/src/main/java/com/google/errorprone/bugpatterns/UnusedVariable.java
index b93080bb1c3..4f18642d2e1 100644
--- a/core/src/main/java/com/google/errorprone/bugpatterns/UnusedVariable.java
+++ b/core/src/main/java/com/google/errorprone/bugpatterns/UnusedVariable.java
@@ -686,10 +686,13 @@ private boolean isParameterSubjectToAnalysis(Symbol sym) {
       checkArgument(sym.getKind() == ElementKind.PARAMETER);
       Symbol enclosingMethod = sym.owner;
 
-      for (String annotationName : methodAnnotationsExemptingParameters) {
-        if (hasAnnotation(enclosingMethod, annotationName, state)) {
-          return false;
-        }
+      if (!(enclosingMethod instanceof MethodSymbol)) {
+        return false;
+      }
+
+      if (methodAnnotationsExemptingParameters.stream()
+          .anyMatch(anno -> hasAnnotation(enclosingMethod, anno, state))) {
+        return false;
       }
 
       if (ANNOTATIONS_INDICATING_PARAMETERS_SHOULD_BE_CHECKED.stream()
@@ -697,7 +700,7 @@ private boolean isParameterSubjectToAnalysis(Symbol sym) {
         return true;
       }
 
-      return enclosingMethod.getModifiers().contains(Modifier.PRIVATE);
+      return canBeRemoved(enclosingMethod, state);
     }
 
     @Override
diff --git a/core/src/test/java/com/google/errorprone/bugpatterns/UnusedVariableTest.java b/core/src/test/java/com/google/errorprone/bugpatterns/UnusedVariableTest.java
index 6ff7e4d732f..d1243c5844b 100644
--- a/core/src/test/java/com/google/errorprone/bugpatterns/UnusedVariableTest.java
+++ b/core/src/test/java/com/google/errorprone/bugpatterns/UnusedVariableTest.java
@@ -257,6 +257,12 @@ public void unusedParamInPrivateMethod() {
             "  private void test(int i, int j) {",
             "    System.out.println(i);",
             "  }",
+            "  private class Inner {",
+            "    // BUG: Diagnostic contains: 'j' is never read",
+            "    public void test(int i, int j) {",
+            "      System.out.println(i);",
+            "    }",
+            "  }",
             "  public void main() {",
             "    test(1, 2);",
             "  }",