Nebraska senators adopt scaled-down workers’ compensation compromise; LB455 advanced

Senators on the floor adopted a compromise amendment to a workers’ compensation bill and advanced LB455 toward final reading.

Senator Hallstrom, sponsor of the measure, urged colleagues to approve AM2401 to AM678 to LB455, describing it as a negotiated "white copy" that removes more controversial subrogation language and replaces a proposed permanent confidentiality rule for first‑injury reports with a 60‑day confidentiality "cooling‑off" period. "It replaces the permanent confidentiality...with a 60 day confidentiality, let's call it a cooling off period," Hallstrom said, adding the amendment couples the period with a notice to injured workers of "their right to seek counsel." (Senator Hallstrom)

The amendment also folded in Senator Brandt’s provision (originally LB1077) on how deductible payments are reported to the National Council on Compensation Insurance (NCCI), changing the state toward a net‑reporting approach for deductible payments, which Brandt said would "level the playing field with our neighboring states" and have no effect on workers’ compensation benefits.

Senator Conrad, who helped negotiate the package, framed the change as a narrower, worker‑protective compromise that preserved judicial discretion on fairness of distributions while creating an objective, court‑issued advisement of rights so injured workers—especially those in rural "legal deserts"—know they may consult an attorney. "It is an authorized advisement of rights, objective, clear, and accurate from the Nebraska workers' compensation court itself to those injured workers," he said. (Senator Conrad)

After floor discussion and brief questioning about timing of benefits and potential back‑end adjustments (including a possible reduction of a six‑week relating period to three weeks if subrogation matters are resolved), the Legislature voted. The clerk recorded 37 yeas and 1 nay on AM2401; the committee amendment AM678 was adopted by voice (37 yeas, no nays); and LB455 was advanced to E and R initial (36 yeas, 1 nay).

What the amendment does and what remains: AM2401 removes the most controversial subrogation language from prior drafts, limits confidentiality of first‑injury reports to 60 days rather than a permanent blackout, requires a court notice to injured workers about counsel, and includes Brandt’s NCCI net‑reporting provision. Negotiators committed to continue work on subrogation, uninsured motorist issues, and other disputed items before select file; Hallstrom pledged that no subrogation change will be reintroduced on select file unless an agreement is reached.

The bill now moves to the next formal stage (E and R initial). Lawmakers and parties who negotiated the compromise signaled willingness to continue negotiation on remaining contentious points before further binding votes.