Workers’ Compensation Court relocation bill amended, advanced

Senators advanced a bill from select file May 12 that would remove a requirement that the Workers’ Compensation Court maintain offices in the state Capitol.

LB151, introduced by Omaha Sen. Steve Lathrop, would allow the Workers’ Compensation Court to maintain offices outside of the Capitol and would allow involved parties to conduct hearings via telephone or video conference.

The bill also would eliminate the court’s three judge review panel and a requirement that compensation court judges reside in Lancaster County unless the court approves residence elsewhere.

Omaha Sen. Scott Lautenbaugh offered an amendment that would have lowered the interest rate assessed against an employer when attorney fees are allowed. He said the current rate of 14 percent was established at a time when it was comparable to other interest rates, but is too high in today’s economic climate.

The rate was not meant to be a penalty, Lautenbaugh said, and should reflect current interest rates.

Lathrop opposed the amendment, saying the rate is the same as that for delinquent property taxes and is used as an incentive to encourage payments from insurance companies of judgments awarded to injured workers.

“Having a significant interest rate makes that happen in a timely way,” Lathrop said.

The amendment failed on a 24-14 vote, one vote short of the number required for adoption.

Lathrop offered an amendment, adopted 33-1, which removed a provision in the bill that would have allowed the court to issue contempt orders.

LB151 advanced to final reading on a voice vote.