Bill on State’s Wage Payment and Collection Act Advances After NFIB-Backed Amendment is Adopted

Property Tax Relief Measure Stalls—For the Moment

State Director Bob Hallstrom reports from Lincoln on the small-business agenda for the legislative week ending February 21

The Legislature is rapidly approaching the midpoint of the 2020 Legislative Session. February 21 marked the deadline for designation of committee and individual senator priority bills. The Speaker of the Legislature will designate his allotment of 25 priority bills next Monday. The bills prioritized will dominate debate for the balance of the session.

Property Tax Relief

Legislative Bill 974 – Property Tax Relief Bill

The Legislature engaged in three hours of floor debate earlier this week without taking a vote on the bill. LB 974 would use excess state tax revenue to increase state aid to public K–12 schools, and gradually lower the tax valuation of property for paying school taxes.

Under the Committee amendment, residential and commercial property tax valuations for school district taxing purposes would be reduced from 100 percent of actual value to 95 percent in 2020; to 91 percent in 2021; and to 87 percent in 2022 and thereafter. For agricultural property, property tax valuations for school district taxing purposes would be reduced from 75 percent of actual value to 65 percent in 2020; to 60 percent in 2021; and to 55 percent in 2022 and thereafter.

Wage Payment and Collection Act Bill Prioritized

Legislative Bill 1016 – Nebraska Wage Payment and Collection Act

The Legislature has advanced LB 1016 to Select File. Introduced by Sen. Matt Hansen (Lincoln), and designated as a priority bill by the Business and Labor Committee, LB 1016 would prohibit retaliation and discrimination for employees who file suit or participate in a proceeding under the Nebraska Wage Payment and Collection Act. As introduced, the bill would have:

expanded damages provisions under the Nebraska Wage Payment and Collection Act

allowed citations issued under the Act to be admissible in court and available to the public upon request

allowed for names of businesses with more than one citation to be posted on the Department of Labor website.

Prior to advancing the bill, the Committee adopted an amendment, supported by NFIB, that would retain the current measure of damages (unpaid wages only) in proceedings under the Wage Payment and Collection Act; only allow citations “directly related” to the action to be admissible in court and limit the publication of names of businesses on the Department of Labor website to those who have “unpaid” citations. Adoption of the Committee amendment removed NFIB’s opposition to the bill.

Workers’ Compensation Bills

NFIB will present testimony on Monday, February 24, before the Business and Labor Committee in opposition to each of the following bills:

Legislative Bill 1126 – Workers’ Compensation – Attorney Fees Penalties and Interests

LB 1126 would provide that no attorney’s fee, penalty, or interest shall be awarded or assessed if a reasonable controversy existed at the time of a delinquent payment (after 30 days’ notice of disability or 30 days from entry of final order) or a refusal to pay compensation or medical payments subject to Neb.Rev.Stat. § 48-120. The bill would allow an award of attorney fees for a failure to authorize or provide assurance of payment for treatment pursuant to Neb.Rev.Stat. § 48-120 if there is no reasonable controversy regarding treatment within 30 days of the request for authorization or assurance of payment. The bill would also authorize, in the court’s discretion, assessment of a penalty not to exceed $500 per day for each day that authorization is delayed without reasonable controversy. (NFIB Position – Oppose)

Legislative Bill 1128 – Workers’ Compensation

LB 1128 would exempt from the provisions regarding release of claims, any claim against a workers’ compensation insurer or its agents for bad faith denial of workers’ compensation benefits. The bill would deem bad faith denial of workers’ compensation benefits to occur if the insurer or its agent denied benefits or authorization of benefits without a reasonable basis at the time of the denial, and the insurer or its agent knew or should have known that there was no reasonable basis for denial, or if the insurer engages in any acts or practices described in Neb.Rev.Stat. §48-146.02 (2) (failure to comply with an obligation under the Nebraska Workers’ Compensation Act). The legislation would also create a five-year statute of limitations for any claim of bad faith denial of workers’ compensation benefits. (NFIB Position – Oppose)

Legislative Bill 1129 – Workers’ Compensation

Under LB 1129, contractors or subcontractors would be included as employees under the Workers’ Compensation Act in cases in which a contract is let to a contractor or subcontractor for work ordinarily done by employees without requiring the contractor or subcontractor to procure workers’ compensation coverage. (NFIB Position – Oppose)

Public Employee Workers’ Compensation Mental/Mental Bill Prioritized

Legislative Bill 963 – Workers’ Compensation – Mental/Mental Injuries

Introduced by Sen. Tom Brewer (Gordon), LB 963 would modify the standards for recovery of workers’ compensation benefits for “mental–mental” injuries to first responders and front-line state employees. The bill would allow a first responder to establish prima facie evidence of a mental injury or mental illness if:

the first responder has undergone a mental health examination upon entry into service as a first responder or subsequent to such entry and before the onset of the mental injury or mental illness and the examination did not reveal the mental injury or mental illness for which the first responder seeks compensation

testimony or an affidavit from a mental health professional is presented stating the first responder suffers from a mental injury or mental illness

prior to the employment conditions which cause the mental injury or mental illness, the first responder had participated in resilience training and updated the training at least annually thereafter.

The legislation would require the Department of Health and Human Services to reimburse a first responder for the cost of annual resilience training not reimbursed by the first responder’s employer. (NFIB Position – Watch)

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.

LB 930 – Senator Briese: Require a minimum amount of tax relief under the Property Tax Credit Act

LB 963 – Senator McDonnell: Change provisions relating to workers’ compensation for injuries to first responders and frontline state employees

LB 1016 – Business & Labor Committee: Change the Nebraska Wage Payment and Collection Act

Small Business Day at the Capitol

NFIB/Nebraska will co-sponsor a Small Business Day at the Capitol on March 10, in Lincoln.

NFIB’s co-sponsors are the:

Nebraska Chamber of Commerce and Industry
Greater Omaha Chamber of Commerce
Lincoln Chamber of Commerce
Lincoln Independent Business Association
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.

Invitations to the Small Business Day at the Capitol have been sent to NFIB members. For more information please visit www.NFIB.com/NE or contact Jake Braunger at 515-243-4723 or by email at [email protected].