LB 397 — Change and eliminate provisions relating to workplace safety committees and a workplace safety program and terminate a fund

LB397 LB397 2026 LEGISLATURELEGISLATIVE OFBILL NEBRASKA397 ONEApproved HUNDREDby NINTHthe LEGISLATUREGovernor SECONDFebruary SESSION24, LEGISLATIVE2026 BILL 397 FINAL READING   Introduced by Moser, 22.

Read  firstA timeBILL JanuaryFOR 17,AN 2025ACT Committee:relating to labor;

Business and Labor A BILL FOR AN ACT relating to labor;

Be it enacted by the people of the State of Nebraska, -1- LB397 LB397 2026 Section 1.

(c) If the assigned risk system described in subdivisions (2)(a) and -2- LB397 LB397 2026 (b) of this section ceases to be viable because no qualified insurer is willing to provide workers' compensation coverage at an average rate level of two and one-halfone- half times the prospective loss costs approved for an advisory organization pursuant to section 44-7511 without also requiring substantial sharing of losses with all other workers' compensation insurers writing workers' compensation insurance in this state and risk management pools created under the Intergovernmental Risk Management Act, then the director may, after consultation with insurers authorized to issue workers' compensation insurance policies in this state, create a reasonable alternative assigned risk system involving the sharing of premiums and losses for assigned risk employers among all such workers' compensation insurers writing workers' compensation insurance in this state and such risk management pools.

(d) (e) The employer has defrauded or attempted to defraud an -3- LB397 LB397 2026 insurer;

48-144.03 (1) Notwithstanding policy provisions that stipulate a workers' -1- LB397 LB397 2026 compensation insurance policy to be a contract with a fixed term of coverage that expires at the end of the term, coverage under a workers' compensation insurance policy shall continue in full force and effect until notice is given in accordance with this section.

No workers' compensation insurance policy shall expire or lapse until thirty days after the giving of such notices, except that a policy may expire or lapse ten days after the giving of such notices if the -4- LB397 LB397 2026 nonrenewal is based on (a) notice from the employer to the insurer to not renew the policy, (b) nonpayment of premium due the insurer under any policy written by the insurer for the employer, (c) failure of the employer to reimburse deductible losses as required under any policy written by the insurer for the employer, or (d) failure of the employer, if covered pursuant to section 44-3,158, to comply with sections 48-443 to 48-445.

No policy shall expire or lapse until thirty days after giving such notices, except that a policy may expire or lapse ten days after the giving of such notices if the nonrenewal is based on (i) notice from the employer to the insurer to not -5- LB397 LB397 2026 renew the policy, (ii) nonpayment of premium due the insurer under any policy written by the insurer for the employer, or (iii) failure of the employer to reimburse deductible losses as required under any policy written by the insurer for the employer , or (iv) failure of the employer, if covered pursuant to section 44-3,158, to comply with sections 48-443 to 48-445.

(e) Notice of the cancellation or nonrenewal of a master policy or the termination of coverage for a client or the employees of a client under such a policy shall be given by the professional employer -6- LB397 LB397 2026 organization to the client within fifteen days after the cancellation, nonrenewal, or termination unless replacement coverage has been obtained.

(4)(a) (7)(a) This subsection applies to workers' compensation multiple -2- LB397 LB397 2026 coordinated policies obtained by a professional employer organization.

No such termination of coverage shall be effective until thirty days after giving such notices, except that the termination of coverage may be effective ten days after the giving of such notices if such termination is based on (i) notice from the client to the professional employer organization or the insurer to terminate the coverage or (ii) notice from the professional employer organization of the client's nonpayment of premium or failure to reimburse deductibles for policies issued pursuant to -7- LB397 LB397 2026 section 48-146.03.

(7) (10) The notices required by this section shall be provided in -8- LB397 LB397 2026 writing and shall be deemed given upon the mailing of such notices by certified mail, except that notices from insurers to the compensation court may be provided by electronic means if such electronic means is approved by the administrator of the compensation court.

48-443 (1)48-443 (1) Every (1)(a) Not later than January 1, 1994, every public and private employer subject to the Nebraska Workers' Compensation Act shall establish a safety committee.

(b) A client of a professional employer organization is not relieved of its obligation to establish a safety committee based on its workers being co-employeesco- employees of the professional employer organization.

(c) The cost of maintaining and operating the safety committee shall -9- LB397 LB397 2026 be minimal to the public employer.

-3- LB397 LB397 2026 (3) A public An employer shall compensate employee members of the safety committee at their regular hourly wage plus their regular benefits while the employees are attending committee meetings or otherwise engaged in committee duties.

Employers shall be -10- LB397 LB397 2026 selected by the Commissioner of Labor for inspection on the basis of factors intended to identify the likelihood of workplace injuries and to achieve the most efficient utilization of safety personnel of the Department of Labor.

(5) An employer who refuses to eliminate workplace hazards in compliance with an inspection shall be referred to the federal Occupational Safety and Health Administration or the federal Mine Safety -11- LB397 LB397 2026 and Health Administration for enforcement.

(10) Any person who knowingly operates or causes to be operated a business -4- LB397 LB397 2026 in violation of recommendations to correct serious or imminent hazards as identified by the Workplace Safety Consultation Program shall be referred to the federal Occupational Safety and Health Administration or the federal Mine Safety and Health Administration.

-12- LB397 LB397 2026 (11) The Attorney General, acting on behalf of the Commissioner of Labor, or the county attorney in a county in which a business is located or operated may apply to the district court for an order against any employer in violation of this section.

Each day of continued violation shall constitute a -13- LB397 LB397 2026 separate violation.

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