Revenue Committee Leader Wants Tax Relief Measure Ready for a Vote by Mid-April

Date: March 15, 2019

Minimum-wage bill for tipped employees stalls

State Director Bob Hallstrom reports from Lincoln on the small-business agenda for the legislative week ending March 15

The balance of the legislative session will be dominated by bills designated as “priorities” by committees, individual senators, and the Speaker of the Legislature, along with adoption of the new biennial budget.

Each senator is allowed to designate a single bill as his or her “priority bill,” with each standing committee able to designate two bills heard by the committee as priorities and the Speaker able to designate 25 bills as “speaker priority bills.”

The deadline for submitting bills for consideration of priority designations by the Speaker was Thursday, March 14, with individual senators and committees required to designate their priority bills by noon on Tuesday, March 19.

Tipped Minimum Wage Bill Stalls

In floor debate extending over two days, an effort to increase the minimum wage for tipped employees stalled on General File Thursday morning. Currently, the tipped minimum wage in Nebraska is $2.13 per hour. Under Legislative Bill 400, introduced by Sen. Megan Hunt (Omaha), the state minimum wage for tipped employees would increase to $3.60 (40 percent of the current standard minimum wage rate) on January 1, 2020, and $4.50 (50 percent of the current standard minimum wage rate) on January 1, 2021.

Sens. Steve Halloran (Hastings), Andrew La Grone (Gretna), John Lowe (Kearny), Mike Hilgers (Lincoln), Steve Erdman (Bayard), Dave Murman (Glenvil), and Mike Groene (North Platte) led the opposition during floor debate on LB 400. Opponents noted that state law already requires business to compensate tipped employees any difference between the gratuities they earn and the current minimum wage of $9 her hour.

Following three hours of debate without voting on LB 400 or any of the pending amendments, the bill was removed from the agenda. Pursuant to legislative practice, the bill will not be scheduled for additional debate unless the sponsor of the bill can show sufficient support (33 votes) for a cloture motion. (NFIB position – Oppose)

Worker Discussion of Wages

Following limited debate late Thursday morning, lawmakers advanced Legislative Bill 217 to Select File on a vote of 27–3. Introduced by Sen. Patty Pansing Brooks (Lincoln) LB 217, as amended, would make it an unlawful employment practice for an employer to retaliate against any of its employees or applicants for employment because he or she has inquired about, discussed, or disclosed information regarding employee compensation.

The bill would not apply to instances in which an employee who has authorized access to the wage information of other employees as a part of such employee’s job functions discloses the wages of such other employees to an individual who does not otherwise have authorized access to the information, unless such disclosure is in response to a charge or complaint or in furtherance of an investigation, proceeding, hearing, or other action, including an investigation conducted by the employer.

Business and Labor Committee amendments change enforcement from the Department of Labor to the Nebraska Equal Opportunity Commission and removed language limiting the purpose for discussing wages to “equal pay for equal work.”

The vote to advance the bill to Select File was as follows:

Yes: Blood, Bolz, Cavanaugh, Chambers, Crawford, DeBoer, Dorn, Gragert, Hansen (M), Howard, Hunt, Kolowski, La Grone, Lathrop, McColllister, McDonnell, Morfeld, Moser, Murman, Pansing Brooks, Quick, Scheer, Slama, Vargas, Walz, Wayne and Wishart.

No: Albrecht, Clements, and Lowe.

Present – Not Voting: Arch, Bostelman, Brandt, Brewer, Briese, Erdman, Friesen, Geist, Groene, Halloran, Hansen (B), Hilgers, Hilkemann, Hughes, Kolterman, Lindstrom, Linehan, Stinner, and Williams.

NFIB opposes LB 217 since it presents significant issues regarding privacy of company information and can adversely impact employee morale.

Tax Relief Deliberations Continue

The Revenue Committee met in executive session on Thursday evening to conduct further discussions on pending tax relief proposals. The committee had previously expressed its willingness to consider a one–half-cent sales tax increase and according to media reports, appears to be coalescing around a modest increase in the cigarette tax, taxing pop and junk food, and repeal of sales tax exemptions for various consumer services. The committee is also weighing options for major change in state aid for local schools.

The committee is also reportedly considering individual and corporate income tax relief which could reduce the maximum corporate income tax rate from 7.81 percent from 6.75 percent and the top individual income tax rate from 6.84 percent to 6.75 percent. Revenue Committee Chairwoman Lou Ann Linehan (Elkhorn) has expressed her desire to have a tax relief proposal ready to send to the full Legislature by mid-April.

Contractor Registration Bill Sent to Governor

Legislative Bill 139 (Contract Registration Act) has been sent to Gov. Pete Ricketts on a vote of 45-0. Introduced by Sen. Mark Kolterman (Seward), the bill would expand the existing Contractor Registration Act to require the database of contractors registered under the Act to include the following information with respect to each registered contractor: (a) whether the contractor carries workers’ compensation insurance in accordance with the Workers’ Compensation Act; (b) whether the contractor is self-insured; and (c) whether the contractor is not required to carry and does not carry workers’ compensation insurance. The bill would create a presumption of no coverage that may be rebutted by an insurer acknowledging coverage for a claim covered event in cases in which the contractor is not required to carry and does not carry workers’ compensation insurance. Under the bill, the “presumption of no coverage” applies solely for the purpose of establishing premiums for workers’ compensation insurance and does not affect liability under the Nebraska Workers’ Compensation Act.

Upcoming Hearings

NFIB will present testimony in support of Legislative Bill 360 on Monday, March 18, before the Business and Labor Committee.

LB 360 – Workers’ Compensation – Nonresidents 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.

Small Business Day at the Capitol

NFIB/Nebraska will co-sponsor a Small Business Day at the Capitol on 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. Governor 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 www.NFIB.com/NE for the latest information.

Previous State Capitol Reports, News Releases, and Related Web Stories

[Photo courtesy of Unicameral Update, the Nebraska Legislature’s official news source since 1977]

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