Session Review: Business and Labor

Lawmakers considered several proposals this session relating to paid sick leave, the state’s minimum wage and other employment benefits and hiring practices.

Wages and benefits

Lawmakers approved a measure intended to clarify provisions of a ballot initiative passed by Nebraska voters that guarantees paid sick leave.

The successful ballot initiative, passed last November, provides eligible Nebraska employees the right to earn and use paid sick leave for family health needs based on the size of their employer — up to 40 hours annually for employers with fewer than 20 employees and 56 hours for businesses with more than 20 employees.

LB415, introduced by Lincoln Sen. Beau Ballard, exempts individual owner-operators, independent contractors and individuals who work fewer than 80 hours annually from the provisions of the initiative, known as the Nebraska Healthy Families and Workplaces Act.

Under the bill, employers with paid leave policies that equal or exceed the amount of paid sick leave required by the initiative are not required to provide any additional paid sick leave.

The measure also clarifies that employers are not required to pay out employees for unused paid sick time when they leave their place of employment. Employees who are rehired within 12 months will have their unused sick time reinstated.

The bill also includes provisions of LB698, sponsored by Sen. Paul Strommen of Sidney. Those provisions exempt several groups from the Nebraska Healthy Families and Workplaces Act, including temporary and seasonal agricultural employees, workers under age 16 and businesses with 10 or fewer employees.

The provisions also removed protections for workers who face retaliation from their employer for using paid sick leave and the ability for employees to seek restitution for earned sick leave that was not granted.

Finally, LB415 includes two additional bills heard by the Business and Labor Committee this session. The provisions of LB402, introduced by Elkhorn Sen. R. Brad von Gillern, classify gambling winnings as earnings under the Employment Security Act and allow the state Department of Labor to collect the overpayment of unemployment benefits of an individual who failed to report their gambling winnings.

Provisions of LB435, sponsored by Sen. Dave Wordekemper of Fremont, change requirements for obtaining an elevator mechanic’s license and establish requirements for obtaining an elevator contractor license under the Conveyance Safety Act.

LB415 passed on a vote of 33-16 and takes effect Oct. 1.

Senators also passed a measure this session that codifies ride-share and delivery drivers as independent contractors in state law.

LB229, introduced by Syracuse Sen. Bob Hallstrom and passed 33-15, adds workers who use technical applications for marketplace network platforms, such as Uber, Lyft and DoorDash, to an existing list of workers who are classified as independent contractors and are excluded from the state’s Employment Security Law.

A marketplace network platform is defined as an entity that accepts requests from the public for its service only through its digital network or mobile application and does not specify set hours of operation for contractors or prohibit contractors from engaging in other employment.

Lawmakers considered a bill that would limit scheduled increases to the state’s minimum wage and establish a separate, lower minimum wage for young Nebraskans.

Nebraskans voted at the November 2022 general election to increase the state minimum wage incrementally to $15 an hour by Jan. 1, 2026. Once the minimum wage, which currently is $13.50 an hour, reaches $15 it is set to adjust annually based on the Midwest Consumer Price Index to account for cost-of-living increases.

The amended provisions of LB258, sponsored by Sen. Jane Raybould of Lincoln, instead would increase the state minimum wage by 1.75% annually.

The bill also would establish a youth minimum wage of $13.50 an hour for employees ages 14 and 15 and adjust the 90-day training wage for new employees under age 20 to $13.50 an hour through Dec. 31, 2026. The training wage then would increase by 1.5% annually.

The youth minimum wage, which would not apply to emancipated youth, also would increase by 1.5% every fifth year beginning Jan. 1, 2030.

LB258 failed to pass on a vote of 31-17. Laws that would alter voter-approved initiative measures require a two-thirds majority, or 33 votes, for final approval.

A motion was filed to reconsider that vote, which was successful, but LB258 was not scheduled for a second final reading vote.

A bill that would provide public benefits to work-authorized immigrants in Nebraska was advanced to general file by the Business and Labor Committee but not scheduled for debate.

LB299, originally sponsored by Sumner Sen. Teresa Ibach and later by Omaha Sen. Margo Juarez, would grant access to public employment and retirement benefits — including unemployment insurance benefits, deferred compensation and educational financial aid — to all work-eligible Nebraskans regardless of immigration status. The bill also would extend eligible benefits to a qualified employee’s family members and dependents.

The committee also advanced a bill that seeks to provide workers’ compensation benefits to firefighters who develop certain cancers.

LB400, introduced by Wordekemper, would amend the Nebraska Workers’ Compensation Act to include cancer experienced by firefighters as a result of exposure to known carcinogens in the course of their employment.

The bill would establish a rebuttable presumption that cancer experienced by an active duty firefighter arose out of the course of their employment. Firefighters who retire after Jan. 1, 2026, would be eligible for medical benefits only.

LB400 was placed on general file but was not scheduled for debate this session.

Hiring practices

Senators approved a bill to expand a hiring preference for Nebraska veterans.

LB144, sponsored by Bellevue Sen. Victor Rountree and passed on a 47-0 vote, expands an existing hiring preference to include spouses of active-duty service members, including National Guard and reserves, and spouses of veterans who were killed in the line of duty or died as a result of their service.

If two or more veteran-preference eligible candidates are being considered for the same position, the preference will be applied equally to all candidates. Preference also is extended beyond a veteran’s initial employment to include reassignments and transfers to a new position.

The committee also considered a bill that would require Nebraska businesses to verify the employment authorization status of their workers.

LB532, introduced by Sen. Kathleen Kauth of Omaha, would require businesses with at least 25 employees to use the federal E-Verify system to confirm the work eligibility of new employees, beginning Jan. 1, 2026. The bill would not apply to state or local government or other political subdivisions.

The measure would require the state Department of Labor to develop and administer a statewide auditing program to inspect for compliance with the bill’s provisions. Violations would result in civil penalties and possible suspension of an employer’s license.

LB532 was advanced to general file with a pending committee amendment that would align the measure with existing E-Verify requirements for political subdivisions. The bill was not scheduled for debate this session.