NEBRASKA WORKERS’ COMPENSATION LEGISLATIVE UPDATE – 2025 SESSION RECAP

The first session of the 109th Legislature recently adjourned. There were a number of bills introduced that dealt with the workers' compensation system in Nebraska.

LB 313, introduced by Senator Ibach (Sumner), dealt with subrogation and would modify the current standard for payment of judgments or settlements from a “fair and equitable distribution of the proceeds” to a statutory formula wherein, upon deduction of the reasonable expenses of making the recovery, one-third would go to the employee, or his or her personal representative, then the balance remaining  would be reimbursed to the employer or workers’ compensation insurer for all compensation payments, and any residual balance would go to the employee or his or her personal representative.

LB 455, introduced by Senator Hallstrom (Syracuse), would require the Workers' Compensation Court to withhold first reports of injury from disclosure to the public with few limited exceptions. This bill made it out of the Business and Labor Committee to general file but was not called for a vote.

LB 456, also introduced by Senator Hallstrom, would require any employee filing a claim for workers’ compensation benefits to provide a patient waiver upon the request of the compensation insurer, employer, or self-insurer, to assist in the investigation of the employee's claim. Failure to provide the patient waiver would toll the commencement of the 30-day period for purposes of liability under the penalty provisions of the Workers’ Compensation Act. The bill would exempt records relating to sexual abuse, human immunodeficiency virus, reproductive health conditions, and mental health conditions, unless seeking benefits for mental health injuries or alcohol or controlled substance abuse, from being disclosed pursuant to a patient waiver.

LB 455 and LB 313 were both advanced from committee and combined into a package prioritized by Senator Hallstrom. However, time ran out in the final days of the session and the bill was one of several priority bills that did not receive floor debate. We anticipate that this will be addressed in the second session of the 109th Legislature.

There were also multiple bills introduced which would be detrimental to the rights of employers if passed. NWCEF opposed these bills at the Unicameral.  These included LB 400, which would have created a presumption of coverage for firefighters diagnosed with cancer.  Currently, there is no presumption of compensability built into the workers’ compensation system.  This bill was not advanced out of committee to General File.

LB 36 would create a right of action for alleged discrimination or retaliation against an individual because such an individual reported a work- related injury, brought a claim, or sought remedies under the Nebraska Workers’ Compensation Act. This bill also failed to make it out of committee.

Lastly, LB 522 would reduce commencement of compensation from seven days to three days of disability, thereby commencing compensation on the fourth calendar day of disability.  It would require compensation to be computed from the date disability began from six weeks to two weeks, and add a cost-of-living increase for disabilities lasting longer than 12 months. This bill also failed to make it out of committee.

Baylor Evnen is proud to have Partner Dallas Jones serve as the President of Nebraskans for Workers’ Compensation Equity & Fairness (“NWCEF”). NWCEF exists to analyze workers’ compensation laws and issues, and to seek equitable means of providing workers’ compensation coverage to Nebraska workers. NWCEF worked throughout the first session to advance employers’ rights and interests in relation to workers’ compensation in Nebraska.  NWCEF will work diligently throughout the interim to ensure balanced and responsible legislation. If you would like to learn more about NWCEF, visit its website.