Nebraska Workers Compensation

Nebraska workers compensation insurance plays a key role in helping businesses handle work-related injuries and illnesses and supporting employees through recovery. To help stay compliant and have their employees’ claims managed with confidence, employers need to understand NE workers compensation laws, including coverage requirements, employee benefit details and reporting obligations. Employers can find important information here.

Understanding workers compensation in Nebraska

Nebraska is known for its wide-open landscapes, natural beauty and strong sense of community. That same spirit runs through the state’s workforce, with industries like manufacturing, construction and professional services playing a vital role in supporting local economies and livelihoods.

With many employees across these industries, the need for workers compensation is especially important. Travelers understands the needs of both employers and employees.

Who is required to carry workers compensation insurance in Nebraska?

If an employer has one or more employees, they are required to obtain workers compensation coverage. State law exempts certain employers and employees from state workers compensation coverage:

Interstate and foreign commerce railroad companies are exempt from state workers compensation requirements.
Workers employed as household domestic servants in private residences.
Small agricultural employers who only employ family members or relatives.
Agricultural employers with fewer than ten unrelated full-time employees. However, if the employer employs ten or more unrelated, full-time workers for 13 weeks (consecutive or non-consecutive) during any calendar year, workers compensation coverage becomes mandatory 30 days after the 13th week.

Nebraska requirements to consider

Failure to provide workers compensation insurance to employees can result in serious penalties, including civil and criminal liability for employee injuries or death, fines and stop-work orders.

Who can receive workers compensation benefits in Nebraska?

Injured employees are generally eligible to receive workers compensation benefits. Some individuals are automatically included in or excluded from workers compensation in Nebraska.

Corporations: Officers who own less than 25% of the common stock of the corporation or officers of non-profit corporations who earn more than $1,000 annually are included in coverage and may not elect to be excluded from coverage. Officers who own 25% or more of the common stock of the corporation or officers of non-profit corporations who earn $1,000 or less annually are excluded from coverage and may elect to be included in coverage.
Partnerships: Partners are excluded from coverage. Partners engaged in the partnership’s business on a substantially full-time basis may elect to be included in coverage.
Sole Proprietorships: Sole proprietors are excluded from coverage. Sole proprietors engaged in the business on a substantially full-time basis may elect to be included in coverage.
Limited Liability Companies (LLCs): Members are excluded from coverage. Members engaged in the business on a substantially full-time basis may elect to be included in coverage.

Overview of workers compensation requirements in Nebraska

Understanding Nebraska workers compensation is essential for employers. Being aware of state requirements helps employers comply with the law and support employees. This is an overview of the fundamentals of employer responsibilities and the benefits employees may receive under NE workers compensation law.

Nebraska workers compensation employer responsibilities overview

Compensable injuries

Generally, injuries arising out of and in the course of employment, regardless of whose fault it is, have potential for workers compensation benefits. This includes occupational diseases and cumulative trauma injuries, which are conditions that develop over time in the workplace.

For occupational disease claims, the employee must show that the employment caused the condition and placed the employee at an increased risk of developing as compared to the general public.
For occupational disease and cumulative trauma, injured employees are entitled to the same medical and wage loss benefits as those with acute injuries.

Posting notices

State law does not require a posting notice requirement for standard workers compensation coverage.

Providing medical treatment

Employers may require injured employees to obtain medical treatment through a managed care plan certified by the Nebraska Workers’ Compensation Court, provided proper notice is given and the employee does not choose their family physician.

An employer enrolled in a certified managed care plan, must notify the injured employee of their right to select a primary treating physician by providing the employee a Form 50 “Notice of Employee’s Right to Choose a Doctor” form as soon as possible after the employer knows about the injury. Employers should provide the form at the time of injury whenever possible.
Once the employee selects a physician using Form 50, the employer is obligated to comply with the selection. If the employer fails to provide the Form 50, the employee retains the right to select their doctor.

Providing lost wages (indemnity)

Employers can be responsible for lost wages, including decrease in pay due to modified job responsibilities. The employee benefits section gives a more in-depth explanation of the types of wage benefits employers may be responsible for.

Prompt reporting and forms

Employers should encourage employees to promptly notify them of any accident or injury. Once aware of a work-related injury, the employer should make sure the injured employee understands they can seek medical treatment if needed. The employer should notify their insurer right away of any work accident or injury so that their insurer can timely report to the Nebraska Workers’ Compensation Court.

Employers or their insurer may need to report claim information throughout the claim process.

Prompt reporting is essential to avoid penalties and provide timely benefits for injured employees.

Record keeping

Employers should maintain thorough documentation, including details about what happened, when, where and witnesses involved. Accurate record keeping and prompt reporting to their workers compensation insurer can play a key role in a timely and complete investigation and handling of the claim.

The employer should continue to maintain and provide necessary information to their insurer throughout the claim process as it is vital for efficient claim handling and compliance with the workers compensation law.

Penalties

Uninsured employers who fail to comply with state law may face penalties, including civil fines, civil liability for employee work-related injuries and illnesses, criminal charges and being prohibited from doing business in Nebraska until compliance is secured.

Nebraska workers compensation employee benefits overview

Calculating Average Weekly Wage (AWW) in Nebraska

An employee’s Average Weekly Wage (AWW) is a set calculation based on Nebraska state requirements. It helps to determine workers compensation wage benefits. Correct benefit amounts can be determined after an employee’s AWW is calculated.

In Nebraska, the AWW is calculated based on the injured employee's earnings for the 26 weeks prior to the injury.

Temporary Total Disability (TTD) benefits

Temporary Total Disability (TTD) benefits are provided when an injured employee is temporarily unable to work due to a work injury or illness.

There is a 7-day waiting period before TTD benefits commence, which is retroactively paid if the disability exceeds 6 weeks.
TTD benefits are typically calculated at 66 2/3% of the employee's AWW, subject to state-established minimum and maximum rates.

Temporary Partial Disability (TPD) benefits

TPD benefits apply when an injured employee returns to work in a limited capacity and earns less than their pre-injury wages.

The benefit amount equals 66 2/3% of the difference between the employee’s pre-injury Average Weekly Wage (AWW) and their post-injury earnings, subject to the state’s maximum weekly benefit limit.

Permanent Partial Disability (PPD) benefits

Permanent Partial Disability (PPD) benefits are paid when an injured employee suffers a permanent impairment from a work injury or illness.

A medical assessment confirms Maximum Medical Improvement (MMI) and assigns an impairment rating using the AMA Guides.
Nebraska law sets a statutory schedule assigning weeks per body part.
Benefits equal 66 2/3% of the employee’s Average Weekly Wage (AWW) multiplied by the impairment percentage and scheduled weeks, subject to state limits.
Whole-body injuries may receive benefits in total (Temporary Total Disability (TTD), Temporary Partial Disability (TPD), or PPD) for up to 300 weeks.

Permanent Total Disability (PTD) benefits

Permanent Total Disability (PTD) benefits are paid to injured employees unable to earn wages in the same kind of work for which they were trained or accustomed to performing and lack the skills needed to perform other work within their physical restrictions.

PTD benefits equal 66 2/3% of the employee’s Average Weekly Wage (AWW), subject to state minimum and maximum rates.

Fatality benefits

Fatality benefits are paid when an employee dies due to a work injury or illness.

Benefits equal 75% of the employee’s Average Weekly Wage (AWW), subject to state limits.
Benefits are payable and divided as set forth in the statute to the deceased employee’s eligible dependents, including the surviving spouse, minor children, full-time student children, incapacitated children, and if none of these qualify, the employee’s parents.
Spouses receive benefits for life unless they remarry. They receive a lump sum payment of two years’ of benefits upon remarriage. Children receive benefits until age 18, or longer if enrolled full-time in an accredited educational institution or incapacitated.
Employers are also responsible for reasonable burial expenses, subject to state limits.

Vocational rehabilitation

In Nebraska, an injured employee who is unable to perform suitable work for which he or she has previous training or experience can request vocational rehabilitation.

A vocational rehabilitation counselor is chosen from a list approved by the Nebraska Workers' Compensation Court to evaluate the employee and, if necessary, develop and implement a vocational rehabilitation plan. Fees for the counselor are paid under the workers compensation claim.
Temporary disability benefits are paid while an employee is participating in a court-approved job placement or formal training plan.

Medical benefits

Injured employees are entitled to all reasonable and necessary medical care for work injuries or illnesses, including treatment, prescriptions, medical supplies and travel expenses.

An employer enrolled in a certified managed care plan, must notify the injured employee of their right to select a primary treating physician by providing the employee a Form 50 “Notice of Employee’s Right to Choose a Doctor” form.
Once the employee selects a physician using Form 50, the employer is obligated to comply with the selection. If the employer fails to provide the Form 50, the employee retains the right to select their doctor.
If the Form 50 was given to the employee in a timely manner and the employee does not choose their family physician, employers enrolled in a managed care plan approved by the Nebraska Workers’ Compensation Court can choose the employee’s physician from the managed care plan.
Employees are not responsible for any copayments or deductibles.

Legislative updates

Regulations, laws and potential changes that can shift your course

As the nation’s largest writer of workers compensation insurance, Travelers is committed to understanding new and evolving legislation, regulations and trends at the state level. Our employees serve on regional and national associations, boards and committees to advocate on behalf of our customers and the industry. We educate stakeholders on the impact legislation can have on businesses. By taking an active role in the legislative process, we participate in the important dialog around worker safety and advocate for best practices industry-wide so all can benefit from our workers compensation expertise.

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Why choose Travelers

Care for the employee, confidence for the employer

Employees are at the heart of every business. That's why Travelers is here to help employers keep them safe and support them when accidents happen. Our experienced teams guide both employers and their injured employees through recovery, from getting the right care to returning to work as soon as medically appropriate. In fact, 70% of injured employees return to work within 30 days.

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Information for Nebraska businesses

Resources

Travelers workers compensation hub

Travelers workers compensation claim process

TravPay®/Pay-as-you-go billing

Premium Audit

Risk Management Information Services (RMIS)

Travelers Risk Control

Government links

Nebraska Workers’ Compensation Court

Nebraska Workers’ Compensation Court employer frequently asked questions

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Sources
https://www.newcc.gov/

Nebraska Workers Compensation

Who is required to carry workers compensation insurance in Nebraska?

Nebraska requirements to consider

Who can receive workers compensation benefits in Nebraska?

Manufacturing

Business & professional services

Construction

Compensable injuries

Posting notices

Providing medical treatment

Providing lost wages (indemnity)

Prompt reporting and forms

Record keeping

Penalties

Calculating Average Weekly Wage (AWW) in Nebraska

Temporary Total Disability (TTD) benefits

Temporary Partial Disability (TPD) benefits

Permanent Partial Disability (PPD) benefits

Permanent Total Disability (PTD) benefits

Fatality benefits

Vocational rehabilitation

Medical benefits

Workplace Safety Resources

How to Unlock the Strategic Value of Benchmarking in Workers Compensation

Workplace Safety Resources

How Presumption Laws Are Changing Workers Compensation

Workplace Safety Resources

How Does Workers Compensation Apply to Employees Versus Contractors

Workplace Safety Resources

Workers Compensation Coverage for Business Leaders

Resources

Government links

Employee Wellness Resources

Developing a Strategy to Control Your Company's Medical Costs

Workplace Safety Resources

The Travelers Injury Impact Report

Workplace Safety Resources

Tips for Creating a Safety Management Program