Labor & Employment

This legislative resolution directs the Banking, Commerce and Insurance Committee to study portable benefits systems for independent contractors and workers in nontraditional employment arrangements. The study will examine how other states have implemented such systems, analyze potential regulatory and administrative challenges for Nebraska, and consider whether current state laws might block voluntary portable benefits programs. The committee will review options for allowing benefits like health coverage and retirement savings to follow workers across multiple jobs or clients, then report findings and recommendations to the Legislature. This is a research and analysis measure rather than a law that immediately changes how workers or businesses operate.

This bill updates funding allocations for Nebraska state agencies for the 2026 fiscal year, specifically adjusting appropriations for the Department of Labor and the Department of Economic Development. It increases budget amounts for workforce development programs, employment services, and business incentive initiatives while maintaining designated funding sources for each purpose. The legislation amends previous appropriation laws to reflect these financial changes and includes provisions for reappropriating any unspent funds from the prior fiscal year.

This legislative resolution directs the Banking, Commerce and Insurance Committee to conduct an interim study on barriers preventing the adoption of multiple employer insurance plans in Nebraska. Multiple employer insurance plans allow small businesses to pool their risks and purchase health insurance together, which could lower costs and improve coverage options for employees. The study will examine current state and federal laws and regulations that may hinder the implementation of these plans. The committee is required to submit its findings and recommendations to the Legislative Council or the full Legislature once the study is complete.

LB 1189 creates a pilot program to help low-income Nebraskans access the existing Earned Income Tax Credit (EITC) by increasing awareness and assistance. The Nebraska Department of Revenue will distribute $250,000 in grants to nonprofit organizations (like tax preparation services, legal aid, and health agencies) that serve low-income residents, funding outreach, education, and application help. Grants must be awarded by October 1, 2026, and the program requires an evaluation report by December 2027 detailing outreach efforts, participants served, and recommendations for future use. This directly affects eligible low-income Nebraskans who qualify for the EITC but may not claim it due to lack of awareness. The bill does not change the EITC itself but aims to improve access to the existing benefit.

LB 1205 requires Nebraska's Department of Economic Development to award grants under the Small Business Investment Program to support small businesses. The bill directs funding to microloan organizations, technical assistance groups, and innovation hubs that provide loans and business support to small businesses, with a focus on job creation and helping low-income communities. Key requirements include a $3 million annual funding limit, a 35% nonstate matching fund requirement for recipients, and mandating that at least 50% of funds support business technical assistance. This bill directly affects small business support organizations and microenterprises across Nebraska, particularly in rural and economically distressed areas.

LB 847 adopts Nebraska's Registered Apprenticeship Act, creating a state framework for structured training programs that require at least 2,000 hours of on-the-job learning plus related instruction. It establishes definitions for apprentices, sponsors, and programs, mandating written agreements between apprentices and employers and requiring registration with the Nebraska Office of Registered Apprenticeship. The bill also modifies tax rate provisions under the Employment Security Law, though specific changes aren't detailed in the text. This directly affects apprentices, employers offering training, and the Nebraska Department of Labor, standardizing oversight of apprenticeships statewide.

LB 1140 amends Nebraska's education budget to allocate $500,000 in General Funds for a pilot program targeting young adults in a metropolitan-class city. The program focuses on multi-trade preapprenticeship training to prepare participants for registered construction apprenticeships and entry-level jobs. This funding is added to the State Department of Education's existing budget line for FY2026-27, specifically designated for this initiative. The bill does not specify a particular city but requires the program to operate within a metropolitan-class municipality.

LB 1206 would exempt the income of certificated teachers, paraeducators, and paraprofessionals from Nebraska's state income tax. The bill amends Nebraska's tax code to exclude this specific group's earnings from taxable income calculations. This change directly affects educators working in Nebraska public schools who hold these roles. The policy creates a targeted tax exemption without altering other tax provisions or requiring new administrative processes.

This bill modifies Nebraska's workers' compensation insurance rules to allow employers to choose deductibles for medical claims or overall policy costs. Employers could select a medical deductible between $500 and $2,500 per claim, or a broader deductible covering up to 40% of their annual premium but no less than $50,000. The law ensures insurers remain responsible for paying medical providers directly and that employees cannot be required to pay deductibles or lose their right to choose doctors. Insurers must assess an employer's financial ability to pay deductibles before offering this option, and employer-paid deductible amounts will count toward experience modification ratings starting in 2027.

LB 1165 amends Nebraska's Key Employer and Jobs Retention Act to adjust the wage retention credit to 5% of wages paid to retained employees earning at least the state average wage, with annual and total spending caps. It creates a new Department of Labor grant program to help employers retain or attract workers after a change in ownership and control, particularly for businesses meeting key employer criteria. The bill also modifies credit percentages under the ImagiNE Nebraska Act and adds capital improvement grants for eligible employers under the Site and Building Development Act. These changes apply to key employers with at least 1,000 equivalent employees in Nebraska during a base year, including those facing ownership transitions.