02/15/2008
Lawmakers adjourned Thursday for a long weekend after spending the previous two days of floor debate on Legislative Bill 395, which would impose a statewide smoking ban. Lawmakers continue to process individual senator priority bills, and a few of the more controversial priority bills are expected to surface next week as the Legislature approaches the mid-point of the 2008 legislative session.
Corporate income tax relief
NFIB presented testimony earlier this week before the Revenue Committee in support of a pair of bills that would decrease corporate income tax liability.
Sen. Carroll Burling (Kenesaw) is the sponsor of both LB 887, which would increase the lowest corporate income tax bracket threshold from $50,000 to $100,000 and decrease the top marginal corporate tax rate from 7.81 percent to 6.84 percent, and LB 888, which would increase the lowest corporate income tax bracket threshold from $50,000 to $200,000.
Mandated benefits
NFIB presented testimony before the Banking, Commerce and Insurance Committee on Monday in opposition to two bills that would mandate specific insurance coverages.
LB 825, introduced by Sen. DiAnna Schimek (Lincoln), would require coverage for single or bilateral cochlear implants for persons diagnosed with severe to profound hearing impairment. LB 969, introduced by Sen. Dave Pankonin (Louisville), would require insurance coverage for prosthetics that, at a minimum, equals the coverage provided under the federal Medicaid program.
Business and Labor Committee hearings
Workers' compensation/mental claims
The Business and Labor Committee held a hearing on February 11 on a bill that would expand workers' compensation benefits for mental conditions.
Introduced by Sen. Abbie Cornett (Bellevue), LB 1082 would redefine "injury and personal injuries" to exclude the "violence to the physical structure of the body" requirement with respect to first responders and persons who in the course of their employment are victims of or witnesses to a violent criminal act.
The bill would allow recovery for injuries by such first responders and other persons for mental conditions or illness, without the need to be accompanied by a physical injury.
Under the measure, an employee would be required to prove that the work-related accidents, conditions, events or injuries that caused the mental condition or illness were unexpected or unusual. The legislation would expressly exclude recovery for mental conditions or illness resulting from any event or series of events that are incidental to normal employer and employee relations, including personnel actions by the employer such as disciplinary actions, work evaluations, transfers, promotions, salary reviews, or termination.
Nebraska workers' compensation laws have been consistently interpreted to prohibit recovery for injuries that do not result in "violence to the physical structure of the body" (so-called "mental-mental claims"). LB 1082, while touted as being narrow in scope, would be subject to significant interpretation and lead to increased litigation in the future. NFIB will present testimony in opposition to LB 1082.
Proper employee classification act
The Business and Labor Committee also considered legislation designed to address the improper classification of employees as independent contractors by employers.
LB 1016, introduced by Sen. Steve Lathrop (Omaha), would conclusively establish that an individual performing services is an employee of the entity for whom the services are provided unless:
- The individual has been and will continue to be free from control or direction over the performance of the service.
- The individual is engaged in an independently established trade, occupation, profession or business.
- The individual makes performance of the services available to the general public.
- When appropriate, the individual furnishes the tools and equipment necessary to provide the service.
- The entity does not represent the individual as an employee to customers.
The bill would allow third party actions by any interested party aggrieved by a violation of the act and would authorize the bringing of class actions for violations. These actions would be available for recovery of the difference in income paid to the misclassified worker(s) and the prevailing wage rate for properly classified employees, as well as any taxes due on the income earned, lost income and attorney fees.
The measure would also require any contractor or subcontractor entering into a contract for labor or services with the state or any political subdivision to submit an affidavit attesting that all persons performing labor or providing services for the employer are correctly classified under the Proper Employee's Classification Act. It also would require that a Federal I-9 Illegal Immigration Form has been completed for each person performing labor or providing services and that the contractor/subcontractor has no reasonable basis to believe that any such person is an illegal immigrant. Any contractor providing a false affidavit is subject to penalties for perjury and precluded from contracting with the state or any political subdivision for period of five years after the date of discovery of the falsehood.
