The workers' compensation and employers liability policy (Part One statutory benefits, Part Two employers liability, payroll-based premium and experience rating) is covered in the national Workers' Compensation guide. Nebraska's law is the Nebraska Workers' Compensation Act, Chapter 48, Article 1 of the Revised Statutes. It's administered and enforced by the Nebraska Workers' Compensation Court, and every disputed claim goes to that court first (48-133, 48-152). The Department of Insurance regulates the insurers and runs the assigned risk system.

Who must comply

Coverage threshold. The Act applies to every employer, resident or nonresident working in Nebraska, with one or more employees in its regular trade or business (48-106(1)).

Exempt unless coverage is elected (48-106(2)):

• railroads in interstate commerce, which are covered by federal law
• household domestic servants in a private home
• agricultural employers, unless they employ 10 or more unrelated full-time employees on each working day for 13 weeks. Coverage then starts 30 days after the 13th week.
  • An exempt farm employer must get a signed notice from each unrelated employee that they aren't covered. Without it, the Act applies to that employee.

Electing coverage (48-106(6)). An exempt employer elects coverage simply by buying a policy. To return to exempt status, it must post a notice for at least 90 days and then stop carrying the policy.

Who counts as an employee (48-115)

• An executive officer owning 25% or more of the stock is excluded unless they elect coverage in writing.
• Sole proprietors, partners and LLC members are covered only if they elect in writing filed with the insurer.
• Volunteer firefighters of rural or suburban fire districts, cities, villages and nonprofit departments are employees while on duty.
• Minors are covered.

Securing compensation (48-145). An employer must do one of these:

• insure with a licensed insurer
• join an authorized risk management pool
• self-insure with Workers' Compensation Court approval

The insurer reports each policy to the court within 10 days of its effective date (48-144.02).

Assigned risk (44-3,158). The Director of Insurance contracts with one or more insurers, for terms of no more than five years, to cover employers that can't get coverage.

The bargain

• Exclusive remedy. Accepting the Act means giving up other remedies (48-111). The immunity extends to the employer's insurer and co-employees, except for willful and unprovoked physical aggression.
• Abolished defenses. The employer can't defend with ordinary employee negligence, fellow-employee negligence or assumption of risk (48-102).
• When the worker gets nothing. No compensation is paid if the injury came from the employee's willful negligence or intoxication (48-127).

What's covered

• An accident is an unexpected injury happening suddenly and violently, producing objective symptoms at the time (48-151(2)).
• An occupational disease is one peculiar to the trade. Ordinary diseases of life that the public is exposed to don't count.
• Going and coming. Coverage applies while the worker is on or about the premises during hours of service. Ordinary commuting isn't covered, and neither is leaving the line of duty for personal purposes.
• Statutory employer (48-116). Anyone using a scheme to avoid the Act is jointly liable. A contractor who in good faith requires the subcontractor to carry coverage is protected.

Notice and claims

• Notice. Written notice goes to the employer as soon as practicable. Lack of written notice isn't a bar if the employer knew (48-133).
• Statute of limitations (48-137). A claim is barred unless agreement is reached or a petition is filed within two years after the accident. If payments were made, the period runs two years after the last payment.
• Late payment. Payments delinquent 30 days after notice of disability, or after a final award, carry a 50% waiting-time penalty (48-125).

Benefits

• Trust Fund. Insurers pay 2% of the benefits they paid in Nebraska the prior year into the Workers' Compensation Trust Fund (48-162.02).
• Second injury rules apply only to injuries before December 1, 1997 (48-128).
• Wages don't include gratuities (48-126).

Insurance-side rules

• Nebraska's general property and liability cancellation statute (44-522) doesn't apply to workers' comp.
• Workers' comp forms are filed for approval (44-7508.01).
• The Nebraska Property and Liability Insurance Guaranty Association pays workers' comp claims of an insolvent insurer as required by law, not subject to the $300,000 cap.

Common exam traps

• Nebraska requires coverage at one employee. Farms need 10 unrelated full-time employees for 13 weeks.
• The waiting period is 7 days, paid back after six weeks of disability.
• The claim limit is two years from the accident or the last payment.
• Disputes go to the Workers' Compensation Court, not the Department of Insurance.
• Officers owning 25% or more, and sole proprietors, are covered only if they elect in writing.