NFIB Victory: Onerous Paid Leave Bill Stopped

Session passes midpoint, floor debates start April 2

State Director Bob Hallstrom reports from Lincoln on the small-business agenda for the legislative week ending March 22

The 2019 legislative session is halfway completed Wednesday and with the designation of all individual senator, committee, and Speaker priority bills, the issues to be addressed during the balance of the session have been defined.

With only one week remaining for committee hearings, full-day sessions of floor debate are scheduled to commence on April 2.

Family and Medical Paid Leave Bill Stalls

Legislative Bill 311 – Paid Family Medical Leave Insurance Act
A proposal to require paid family medical leave for Nebraska workers was debated over the course of two morning sessions of floor debate during the past week.

Introduced by Sen. Sue Crawford (Bellevue), LB 311, beginning July 1, 2021, would establish a statewide paid family medical leave insurance program similar to Nebraska’s unemployment insurance system and managed by the state Department of Labor. Employers would be required to contribute up to 1 percent of gross wages paid to covered employees:

to pay for the family medical leave benefit

to pay all other benefits to which an employee would have been entitled in the absence of the leave, as well as all other benefits offered to the employee (vacation, sick leave, etc.)

to allow the employee to return to his or her position after exercising the right to family medical leave.

During floor debate, numerous state senators noted that the family and medical paid leave mandate would have an adverse impact on small businesses across the state. Following three hours of debate, the bill was removed from the legislative agenda and is not likely to reappear. Many thanks to NFIB small business owners who contacted their state senator to express their opposition to LB 311.

More about NFIB’s opposition to LB 311 can be read here.

Committee Hearings

NFIB presented testimony in support of Legislative Bill 360 on Monday, March 18, before the Business and Labor Committee and in opposition to Legislative Bill 491 in the Judiciary Committee on Thursday, March 21.

Legislative Bill 360 – Workers’ Compensation – Nonresident Alien Dependents
Introduced by Sen. Matt Hansen (Lincoln), LB 360 would provide for settlement of claims of nonresident alien dependents by authorizing a nonresident alien dependent, at any time prior to the final settlement, to file with the Workers’ Compensation Court a power of attorney designating any suitable person residing in the state to act as an attorney-in-fact in Workers’ Compensation Court proceedings. The bill would allow the power of attorney to act as attorney-in-fact for the nonresident alien in court proceedings if the court determines that the interests of the nonresident alien dependent will be better served by the attorney-in-fact than by the consular officer. The attorney-in-fact would be required to furnish a bond satisfactory to the Compensation Court conditioned upon the proper application of any money received as compensation under the Workers’ Compensation Act.

Legislative Bill 491 – Punitive Damages
Sen. Justin Wayne (Omaha) has introduced a bill that would authorize a court to award punitive damages when the defendant has displayed actual intent to cause harm or causes an injury through action taken in reckless disregard for the lives and safety of others. The bill would:

authorize the award of punitive damages to punish the defendant and provide retribution

act as a deterrent to the defendant and others inclined to behave in a similar manner

demonstrate the court’s disapproval of such conduct.

Any award of punitive damages would be remitted to the state treasurer for distribution to the common schools.

In opposing LB 491, NFIB and others noted that the bill:

places no limits on who could sue for punitive damages

does not contain any limits on the amount of punitive damages to be awarded

could bankrupt businesses.

Priority Bill Designations

The following bills of interest to NFIB have been designated as priority bills, which will enhance their likelihood of being considered as the session progresses.

Senator Priority

Legislative Bill 311 – Senator Cavanaugh – Paid Family Medical Leave Insurance Act (NFIB Position – Oppose)

Legislative Bill 663 – Senator Friesen – Federal Tax Conformity – Adjusted Basis (NFIB Position – Support)

Committee Priority

Legislative Bill 418 – Business and Labor Committee – Workers Compensation – Debt Collection (NFIB Position – Watch)

While NFIB maintains a position of “Watch” on LB 418, since the bill could be used as a vehicle for amendments containing provisions of other workers compensation bills opposed by NFIB, we will remain on guard to prevent this type of action from occurring.

Small Business Day at the Capitol

NFIB Nebraska will co-sponsor a Small Business Day at the Capitol, April 17, in Lincoln.

NFIB’s co-sponsors are the Nebraska Chamber of Commerce and Industry, the Greater Omaha Chamber of Commerce, the Lincoln Chamber of Commerce, the Lincoln Independent Business Association and Nebraskans For Workers’ Compensation Equity and Fairness.

Small Business Day gives NFIB members an opportunity to network with other small business owners. Gov. Pete Ricketts is expected to speak, and there will be a legislative briefing by state senators.

Details on the time and location of Small Business Day at the Capitol will be released soon. Check here for the latest information and to register.