If an employee is injured by accident or occupational disease arising out of and in the course of their employment, they may be entitled to workers’ compensation benefits. Workers’ compensation insurance covers the risk of an employee getting injured on the job. Workers’ compensation is different and separate from unemployment compensation, Social Security disability benefits, health and accident insurance, or other disability benefit plans provided by the employer.
The Nebraska Workers’ Compensation Act (the Act) is found at Section (§) 48-101 to § 48-1,118 of the Nebraska Revised Statutes (laws, written as “Neb. Rev. Stat.”). It provides the only avenue for employees to obtain benefits from their employer for their work-related injuries .
Who is covered by Nebraska workers’ compensation ?The Act applies to most employees. It does not apply to independent contractors. Most Nebraska employers are required to have workers’ compensation insurance to make sure coverage is in place if employees are injured while working. Exceptions, such as for federal employers, can be found in Neb. Rev. Stat. § 48-106.
W hat workers’ compensation coverage do I need if I am a nonresident employer (an employer based outside of the State of Nebraska) with employees doing business in Nebraska ?
Under the workers’ compensation laws of Nebraska, most employers performing work in this state must obtain private insurance coverage to cover the risk of injury to their employees on the job. See the frequently asked question (FAQ) entitled, “Who is covered by Nebraska workers’ compensation?” The Nebraska Workers’ Compensation Act applies to every nonresident employer performing work in the state, for any length of time, who employs one or more employees in the regular trade, business, profession, or vocation of the employer. Workers’ compensation coverage must be obtained from an insurance company licensed to provide workers’ compensation coverage in Nebraska, unless the employer is authorized to self-insure workers’ compensation liability under Nebraska law.
A number of other states provide workers’ compensation coverage through a state fund. Currently, there is no state fund licensed to provide workers’ compensation coverage in Nebraska. Nebraska also has no cooperative agreements to honor workers’ compensation coverage provided by state funds in other states.
The Nebraska Workers Compensation Insurance Plan (NWCIP) provides workers’ compensation and employers’ liability coverage to employers who are unable to secure coverage through the voluntary market.
If you are a nonresident employer who already carries a workers’ compensation policy, you may check with your insurer or the Nebraska Department of Insurance to verify whether the carrier is licensed to provide coverage in Nebraska.
How may an employer comply with the statutory requirement that workers’ compensation coverage be provided?
Under the Nebraska Workers’ Compensation Act, there are only three methods by which employers may fulfill their obligation to secure payment of compensation:
No. The insurer will notify the court when you purchase a policy of workers’ compensation insurance. After receiving proof of coverage from your insurer, if the court has any questions, you may be asked to confirm details about that coverage.
Is self-insurance an option for employers?Employers who satisfy certain requirements and have been approved by the court may self-insure. The employer must be a corporation or political subdivision, with a minimum of five years in business under the present organizational structure, have a minimum of 100 employees, a strong financial base, and a positive program for safety. Once approved, a self-insurer must file a surety bond and excess insurance with the court. Any employer not approved by the court must carry a policy of workers’ compensation insurance, or otherwise secure the payment of compensation as required by law.
What are the penalties for an employer's failure to provide workers’ compensation insurance coverage?
Any one or more of the following penalties may be applied:
Also, an injured employee may sue the employer for damages in district court, and the employer will lose its common law defenses .
How do I determine whether a worker is an independent contractor or an employee?The Nebraska Workers’ Compensation Act (Act) applies to the State of Nebraska, to every governmental agency created by it, and to every employer in the state employing one or more employees in the regular trade, business, profession, or vocation of the employer. Thus, virtually all employees are covered by the Act, including employees of private industry, state and local government, part-time employees, minors, and employees of charitable organizations. However, employers are not required to provide coverage for independent contractors. At times, there is disagreement on whether a worker is an employee or an independent contractor. While the Act does not define “independent contractor,” case law provides several factors to consider when determining whether a worker is an employee or an independent contractor. This decision is made on a case-by-case basis, and no single factor is determinative. The Nebraska Supreme Court applies a 10-factor test when determining whether a worker is an independent contractor or an employee .
Are agricultural operations subject to the Nebraska Workers’ Compensation Act?The status of agricultural operations under the Nebraska Workers’ Compensation Act was changed by LB 210 from the 2003 session of the Nebraska Legislature. Employers engaged in an agricultural operation are exempt from providing workers’ compensation insurance coverage if they employ only related employees. Agricultural employers who employ unrelated employees are also exempt unless in a calendar year they employ 10 or more unrelated, full-time employees, on each working day for 13 calendar weeks (consecutive or not). The act applies to an employer 30 days after the 13th week.
An employer exempt from the act may elect to provide workers’ compensation coverage for its employees. Such election is made by the employer obtaining a workers’ compensation insurance policy from an insurer licensed to write workers’ compensation insurance in Nebraska.
Every exempt employer who does not elect to provide workers’ compensation insurance coverage must give all unrelated employees the following written notice at the time of hiring or at any time more than 30 calendar days prior to the time of injury: “In this employment you will not be covered by the Nebraska Workers’ Compensation Act and you will not be compensated under the act if you are injured on the job or suffer an occupational disease. You should plan accordingly.” The notice must be signed by the unrelated employee and retained by the employer. Failure to provide this notice subjects an employer to liability under the act for any unrelated employee to whom such notice was not given.
The following definitions are included in LB210:
Select the following link for further information: Agricultural Operations and Workers’ Compensation .