Nebraska Supreme Court Affirms that 30 Day Payment Period and Penalties Apply Towards Settlements via Release Waiver

Recently, the Nebraska Supreme Court was faced with the issue as to whether there is a 30 day payment period and/or exposure for penalties for failure to pay within that period for settlements arising out of Release Waivers. In Dragon v Cheesecake Factory, the issue essentially came down to whether the penalty provisions arising out of the 30 day payment period apply to settlement releases as opposed to settlement applications. There had been some confusion at the trial court level and recently the state legislature had amended the Act to provide clarification.

In summary, the Nebraska Supreme Court has affirmed the position of the legislature – that when an employer and employee settle a claim, that employer has 30 days to mail the settlement proceeds and failure to do so will result in a 50% penalty on the indemnity owed and potential attorneys’ fees. This applied regardless of whether the settlement is via release or lump sum settlement application. For questions regarding Nebraska workers’ compensation settlements contact Baylor Evnen attorneys Dallas Jones at djones@baylorevnen.com or Paul Barta at pbarta@baylorevnen.com.