Session Review: Business and Labor

Issues relating to workers’ compensation and peace officer safeguards topped business and labor concerns this session.

LB630, introduced by Omaha Sen. Steve Lathrop, made several technical changes to the workers’ compensation system, including:

• requiring acceptance by the court before electronic notice is considered given;
  
• clarifying that any settlement or agreement is voluntary and not final until approved by the court;
  
• allowing vocational rehabilitation counselors to submit disputes for informal dispute resolution;
  
• removing a requirement that a duplicate original application for lump sum settlement approval be presented to the court; and
  
• changing the reimbursement date to Jan. 1, 2011, for inpatient trauma services under the inpatient hospital fee schedule.

The bill was amended to incorporate provisions from two other bills.

LB194, sponsored by Lincoln Sen. Danielle Nantkes, allows lump sum settlements to become final without court approval if:

• the individual is not represented by counsel;
  
• the employee is a Medicare beneficiary or is eligible, or has a reasonable expectation of becoming eligible, within 30 months of the settlement;
  
• Medicaid will not be reimbursed or medical expenses will not be paid as part of the settlement; or
  
• the case involves a death and payments will be made to dependents.

If a settlement does not require court approval, a release must be signed indicating that the employee understands their rights afforded under the Nebraska Workers’ Compensation Act.

The bill also requires the employee or his or her dependent’s representative, and the employee’s attorney, to file a release confirming the settlement as a full and complete discharge from further liability.

LB453, sponsored by Tekamah Sen. Kent Rogert, requires that exempted agricultural employers notify employees that they are not covered by workers’ compensation insurance either at the time of hiring or at more than 30 days prior to an injury.

Lawmakers passed LB630 on a 45-0 vote.

Senators also gave final approval to a bill that guarantees procedural safeguards for peace officers during formal administrative investigations.

LB158, introduced by Omaha Sen. Tom White, requires villages, second-class cities and sheriff’s offices to adopt rules and procedures for the suspension, demotion or removal of any police officer or deputy sheriff, with or without pay, upon a written accusation.

The rules and procedures must:

• include provisions for giving notice and a written copy of the accusation to the officer;
  
• establish the officer’s right to have an attorney present at all hearings and proceedings regarding the accusation;
  
• authorize both parties, or their attorneys or representatives, to record all hearings and proceedings; and
  
• establish an appeal process.

The bill’s provisions do not apply to an officer or deputy sheriff during his or her probationary period.

LB158 also prohibits:

• disclosure of a peace officer’s personal financial records unless pursuant to a valid search warrant or subpoena;
  
• inclusion of any disciplinary action in a peace officer’s records unless the officer has received a written copy of such action;
  
• public release of a photograph of a peace officer who is the subject of an investigation without written permission from the officer; and
  
• threat of or actual retaliation against or discharge of a peace officer for exercising his or her rights as outlined in a municipality or county’s investigation rules and procedures.

Senators passed LB158 on a 46-1 vote.

A bill originally intended to extend a fine for delayed workers’ compensation payments was laid over on select file.

Under existing law, insurance companies face a penalty of 50 percent of the value of a claim if they fail to pay uncontested medical payments in a workers’ compensation case. LB622, introduced by Omaha Sen. Jeremy Nordquist, would have extended the penalty to contested claims under certain circumstances.

LB622 would have entitled injured workers to an additional 50 percent of an uncontested medical bill if an insurance company fails to pay the uncontested portion of a claim within 30 days. The 30-day period would begin at the notice of injury or after the final order issued by the court.

Lathrop brought an amendment that would require insurance companies to pay the portions of a claim on which there is no reasonable controversy when a claim is on appeal.

Lautenbaugh disagreed, saying the “no reasonable controversy” standard can be difficult to establish and is open to interpretation.

Lautenbaugh offered a successful amendment to Lathrop’s amendment that would allow non-payment of disputed portions of a claim from the time an appeal is filed, rather than when no reasonable controversy is established.

Upon the adoption of his amendment, Lathrop made a motion to indefinitely postpone the bill and Nordquist laid it over until next session.

Finally, the committee voted to indefinitely postpone a bill dealing with confidentiality in Workers’ Compensation Court documents.

Under LB51, introduced by Lincoln Sen. Tony Fulton, documents containing confidential information could not be accessed for public inspection or copying unless certain requirements were met.