Nebraska Employment Law Legislative Update
As the 2026 Nebraska legislative session progresses, lawmakers have introduced several bills that could substantially impact private employers across the state. While many proposals are still in early stages—and may be amended or fail to advance—these measures signal continued focus on paid leave enforcement, expanding workers’ compensation benefits, mandating smaller employers give advance notice when conducting workforce reductions, and enforcement of employer compliance obligations.
The Nebraska Legislature’s 2026 session began on January 7 and is expected to conclude in mid-April. Bills that advance out of committee are typically debated on the legislative floor by early March. Below is a summary of notable employment-related legislation currently under consideration and what it could mean for employers.
Expansion of Enforcement Under the Nebraska Health Families and Workplaces Act (LB 1089)
LB 1089 proposes amendments to the Nebraska Health Families and Workplaces Act, which became effective October 1, 2025. Under current law, enforcement of paid leave requirements is handled exclusively by the Nebraska Commissioner of Labor through investigations and administrative penalties.
If passed, LB 1089 would add a private right of action, allowing employees to file lawsuits directly against employers for alleged violations. The bill proposes a one-year statute of limitations for such claims, significantly increasing potential litigation exposure for covered employers.
LB 1089 has been referred to the Business and Labor Committee and is scheduled for a hearing on February 9, 2026.
Proposed Changes to Nebraska Workers’ Compensation Benefits and Procedures (LB 1056)
LB 1056 would make extensive changes to the Nebraska Workers’ Compensation Act. Among other things, the bill would:
- Require employers to provide interpreter service for non-English-speaking employees injured on the job.
- Modify compensation schedules and benefit calculations.
- Adjust minimum weekly income benefits.
- Require annual cost-of-living adjustments to benefits.
- Mandate a $25,000 payment to a deceased worker's personal representative when no dependent is eligible for benefits.
The bill was introduced by Senator Conrad and is scheduled for a Business and Labor Committee hearing on February 23, 2026.
Employment Security and Unemployment Reporting Requirements (LB 1015)
LB 1015 proposes changes to Nebraska’s Employment Security Law, including recognition of a Business Innovation Cash Fund that could be used to pay unemployment benefits if necessary.
The bill would also require entities receiving financial assistance under the Business Innovation Act that employ individuals in Nebraska to submit quarterly wage reports to the Nebraska Department of Labor.
LB 1015 was introduced by Senator Ibach and was set for a hearing on January 26, 2026.
Earlier Start Date for Workers’ Compensation Benefits (LB 1009)
LB 1009 would amend the Workers’ Compensation Act to allow benefits to begin on the fourth day of disability, rather than the eighth day as currently required.
The bill would also shorten the duration a disability must last before compensation is calculated from the start date—from six weeks to two weeks—potentially increasing benefit costs for employers.
LB 1009 is scheduled for a Business and Labor Committee hearing on February 23, 2026.
Clarifying Franchisor Liability Under Nebraska Employment Laws (LB 941)
LB 941 seeks to clarify when franchisors may be considered “employers” of franchisee employees under various Nebraska labor laws, including workers’ compensation, unemployment insurance, wage payment, and fair employment statutes.
Under the proposed framework, a franchisor would be deemed an employer only if it exercises direct and immediate control over one or more essential terms or conditions of employment. The bill also defines what constitutes such control. The goal of this bill is likely to reduce exposure to franchisors for claims brought by employees of franchises against both the franchisee and the franchisor.
LB 941 is scheduled for a hearing on February 9, 2026.
Nebraska WARN Act Proposal and Expanded Language Access Requirements (LB 921)
LB 921 would establish the Nebraska Worker Adjustment and Retraining Notification Act (WARN), similar to the federal WARN Act, requiring certain employers in Nebraska to provide at least 60 days’ notice before a business closing or mass layoff affecting more than 25 employees in a 30-day period. The Nebraska WARN Act would apply to employers with 25 employees, which would make the state requirements applicable to many more employers than the federal WARN Act, which only applies to employers with 100 or more employees.
The bill outlines notice responsibilities in the event of a business sale, provides limited exceptions for unforeseeable business circumstances and natural disasters, and authorizes civil penalties of up to $100 per day per violation.
In addition, LB 921 would require interpreter services for non-English-speaking employees when at least 10% of the workforce speaks the same non-English language.
A hearing was held on January 26, 2026.
Enforcement and Compliance Changes Affecting Wage Payment, Child Labor, and Worker Classification (LB 747)
LB 747 proposes amendments to several employment-related statutes, including:
- Updated record-retention requirements for employees under age 16.
- Removal of statutory fines related to wage statement violations.
- Expanded subpoena and enforcement authority for the Nebraska Department of Labor.
- Changes to contractor registration fee requirements.
- Enhanced authority for the Department of Labor to investigate worker misclassification without prior notice.
The bill would also eliminate the requirement that the Department of Labor maintain a hotline and website for reporting suspected misclassification violations.
LB 747 was set for a hearing on January 26, 2026.
What Employers Should Be Doing Now
While many of these proposals are still subject to change, they reflect an ongoing legislative trend toward expanded enforcement authority and increased employer obligations. Employers should begin evaluating what impact these bills may have on their business or organization, and whether current policies, pay practices, leave administration, and workforce planning strategies would withstand scrutiny if these bills become law.
Proactive review now can help reduce risk later.
If you would like to assess how these proposed changes may impact your organization—or want to prepare in advance for likely compliance obligations—I encourage you to contact me to discuss next steps. We will continue monitoring developments and plan to issue a follow-up legislative update this spring, along with a comprehensive webinar later this year addressing enacted legislation, key case law developments, and emerging legal issues impacting employers.
To discuss this or any other employment-related questions or concerns, please contact us via this link.
