Business and Labor Committee
February 3, 2025
Committee Chair: Sen. Kauth | Bills Heard: 6 | Full Transcript (PDF)
LB94: Digital Skills Empowerment Act
Introduced by: Sen. McKinney | Testimony: 2 proponents, 0 opponents, 0 neutral | Read bill text (PDF)
Sen. McKinney seeks $50 million to teach digital skills to Nebraskans in economically disadvantaged areas. The Digital Skills Empowerment Act would create training programs, apprenticeships, and job placement services targeting low-income communities and people of color left behind in the tech-driven economy.
Why it matters: Nebraska's workforce is unprepared for tomorrow's jobs. McKinney cited data that 75-80% of future jobs require digital skills people lack today. The bill aligns with the state's digital equity plan and could help address workforce shortages while improving economic mobility.
What they're saying: - Proponents: "Digital literacy is not merely an advantage; it is a necessity," said Joyce Beck of AARP Nebraska, noting that 37.3% of the essential workforce is 50 and older. The Greater Omaha Chamber supports the concept but flagged the high fiscal note. - McKinney: "We're behind, and this is just an effort to get us caught up as much as possible."
By the numbers: The bill proposes $50 million from the Workforce Development Program Cash Fund, which currently holds $40 million. Five proponent letters were submitted; zero opponents.
What's next: No vote was taken. The Chamber suggested components could be incorporated into LB265. McKinney said he's willing to work with the committee and is open to figuring out funding "either this year or next year."
Committee sentiment: Skeptical: Sen. Hansen Unclear: Sen. Raybould, Sen. Ibach, Sen. Kauth
Sentiment estimated from questions and comments — not stated positions.
LB297: Unemployment Insurance Tax Rate Reduction
Introduced by: Sen. Ibach | Testimony: 2 proponents, 0 opponents, 0 neutral | Read bill text (PDF)
Sen. Ibach proposes cutting employer UI taxes roughly in half for 2025, citing a bloated trust fund. LB297 would reduce the average combined tax rate from 0.88 to 0.48 and adjust the statutory formula to prevent future over-collection from Nebraska employers.
Why it matters: Nebraska's unemployment insurance trust fund holds $544 million—far more than needed to weather a recession or pandemic. The state paid out only $95 million in benefits in 2024. Employers say the excess burden is unfair; the Department of Labor agrees the current formula over-collects.
What they're saying: - Interim Commissioner Katie Thurber: The fund could cover both 2020 and 2021's combined payouts without additional employer revenue. "There is simply no need to maintain the cash reserves of the unemployment trust fund at current levels." - Business groups: Support the relief while maintaining fund integrity.
By the numbers: Current balance: $544 million. 2024 benefits paid: $95 million. Proposed 2025 tax rate: 0.48 (down from 0.88). Two support letters; zero opponents.
What's next: No vote was taken. The bill has broad committee support and appears positioned to advance.
Committee sentiment: Supportive: Sen. Sorrentino, Sen. Raybould, Sen. McKinney, Sen. Hansen
Sentiment estimated from questions and comments — not stated positions.
LB265: Workforce Development Program Consolidation
Introduced by: Sen. Sorrentino | Testimony: 2 proponents, 2 opponents, 0 neutral | Read bill text (PDF)
Sen. Sorrentino proposes merging two workforce development funds and eliminating the Nebraska Worker Training Board. LB265 would consolidate the Nebraska Training and Support Cash Fund and Workforce Development Program Cash Fund into one account, with the Department of Labor handling all grant decisions.
Why it matters: The bill aligns with the Governor's push for government efficiency. The Department already vets and scores all grant applications; the board's role is largely ceremonial. Consolidation could speed up grant approvals and reduce administrative overhead.
What they're saying: - Interim Commissioner Thurber: "The board attended meetings and reviewed our recommendations. I've never been to a meeting where anyone disagreed." - Greater Omaha Chamber (Heath Mello): Supports consolidation but proposed an advisory board—not an approval board—to maintain transparency and public engagement. - Union opponents: Eliminating the board removes crucial checks and balances. "It's important to have an approval board, not just an advisory board," said Jon Nebel of the electrical workers.
By the numbers: Board meets quarterly; has 4-5 members including public representative, union rep, and agency reps. Two opponent letters; zero proponent letters.
What's next: No vote was taken. Sen. Sorrentino said he's willing to work with the Chamber and Department of Labor on the advisory board proposal.
Committee sentiment: Supportive: Sen. Hansen Skeptical: Sen. McKinney, Sen. Raybould Unclear: Sen. Ibach
Sentiment estimated from questions and comments — not stated positions.
LB353: Public School Employee Union Membership Freedom
Introduced by: Sen. Lonowski | Testimony: 1 proponents, 2 opponents, 0 neutral | Read bill text (PDF)
Sen. Lonowski seeks to guarantee public school teachers can quit unions anytime, citing arbitrary opt-out windows. LB353 would prohibit labor organizations from restricting when school employees can join or terminate membership.
Why it matters: Teachers in some districts face narrow opt-out windows—Lincoln allows exits only March 1-April 15; Millard, May 1-June 1. Miss the window and you're locked in for 16 months, still paying dues. Lonowski argues this restricts constitutional free association rights.
What they're saying: - Proponents: "85% of the nation's teachers agree they want freedom to join or leave a union at any time," said Chuck Zurcher of the Association of American Educators. Teachers face life changes—job loss, medical bills—but can't afford $60/month dues. - Opponents: The 2018 Janus decision already settled this. "We have allowed people to end their membership in the middle of the year," said NSEA President Tim Royers, who approved a mid-year termination last month. The bill is "unnecessary" and raises constitutional concerns by singling out school employees.
By the numbers: 12 proponent letters; 4 opponent letters.
What's next: No vote was taken. Sen. Lonowski said he's willing to make amendments. Sen. Hansen suggested expanding the bill to all public employees to address constitutional concerns.
Committee sentiment: Skeptical: Sen. Sorrentino, Sen. Hansen Opposed: Sen. Raybould Unclear: Sen. Ibach, Sen. McKinney
Sentiment estimated from questions and comments — not stated positions.
LB320: Hotel Employee Human Trafficking Awareness Training
Introduced by: Sen. Sanders | Testimony: 3 proponents, 1 opponents, 1 neutral | Read bill text (PDF)
Sen. Sanders reintroduces bill to train hotel workers to spot human trafficking. LB320 would provide free, online training from the Attorney General's office to help hospitality employees identify and report trafficking victims.
Why it matters: Hotel workers are on the front lines. They see guests checking in without luggage, avoiding eye contact, showing signs of control by others. Since 2020, 1.2 million hotel workers nationwide have been trained to recognize these red flags. Nebraska's independent hotels lack resources that branded chains (IHG, Wyndham, Marriott) already provide.
What they're saying: - Hoteliers: Training takes about an hour and is critical. "Anything we can do from an industry standard to protect these bad acts from happening, I think is a very important measure," said Jason Hoehne of H&H Hospitality. - Attorney General's office: We've produced a high-quality training video and are ready to partner with hotels. Suggested removing outdated task force references and recommending Nebraska's human trafficking hotline. - Trial attorneys: Support the bill but want to narrow the immunity from liability provision to prevent it from shielding negligent conduct.
By the numbers: 9 proponent letters; 0 opponent letters; 1 neutral letter.
What's next: No vote was taken. Sen. Sanders waived closing. The bill appears to have broad support pending language refinements on the immunity provision and task force references.
Committee sentiment: Supportive: Sen. Hansen, Sen. Ibach, Sen. Sorrentino, Sen. Kauth
Sentiment estimated from questions and comments — not stated positions.
LB698: Paid Sick Leave Initiative Modifications
Introduced by: Sen. Strommen | Testimony: 8 proponents, 10 opponents, 1 neutral | Read bill text (PDF)
Sen. Strommen seeks to carve out small businesses, seasonal workers, and young people from Initiative 436's paid sick leave mandate. LB698 would exempt employers with 10 or fewer employees, remove temporary agricultural workers and 14-15 year-olds, and eliminate the four-year lookback period that allows employees to sue for past violations.
Why it matters: Voters approved paid sick leave 74% in November, but implementation threatens small businesses operating on razor-thin margins. A rural grocery store with 1.4 FTE employees faces $1,200 in new costs. Residential builders estimate $10K-$15K price increases per home. Federal law (FMLA, COBRA) has long exempted small employers for good reason.
What they're saying: - Proponents: "We're not doing away with the will of the people. We're just trying to clean up and protect our most vulnerable employers and employees," said Strommen. NFIB survey: 50% of small business members said the law will suspend hiring or reduce employees. - Opponents: "600,000 Nebraskans voted for this—more votes than any politician ever received," said Robert Way. Craig Moody, a small business owner and ballot sponsor, testified paid sick leave is an "accelerator" for his company's growth. Data from 18 states shows paid sick leave does not harm businesses.
By the numbers: Initiative 436 passed 74% statewide, 89 of 93 counties, every legislative district. Out-of-state funding: $2.5M. Local funding: $25K. 9 proponent letters; 294 opponent letters; 1 neutral.
What's next: No vote was taken. The hearing lasted 5.5 hours with testimony from small business owners, workers, unions, advocacy groups, and economists. The committee faces a fundamental question: how much can the Legislature modify a voter-approved initiative?
Committee sentiment: Supportive: Sen. Ibach, Sen. Sorrentino Skeptical: Sen. McKinney, Sen. Hansen, Sen. Kauth Unclear: Sen. Raybould
Sentiment estimated from questions and comments — not stated positions.
Session Notes
The committee heard six bills over approximately 5.5 hours. Committee Chair Sen. Kauth opened with procedural instructions regarding testifier sheets, handouts, and the three-minute light system. Committee members introduced themselves: Sen. Jane Raybould (LD28), Sen. Dan McKeon (LD41), Sen. Tony Sorrentino (LD39), Sen. Teresa Ibach (LD44), Sen. Terrell McKinney (LD11), and Sen. Ben Hansen (LD16). Legal counsel Thomas Helget and committee clerk Julie Condon assisted. Pages Emma Jones and Lauren Nittler were introduced. The hearing on LB698 (paid sick leave modifications) generated the most testimony, with 9 proponents, 294 opponents, and 1 neutral letter—reflecting the contentious nature of modifying a voter-approved ballot initiative. No votes were taken on any bills during this hearing.
Generated by NE Wire Service | Source: Nebraska Legislature Transcribers Office This is an AI-generated summary. Verify all claims against the official transcript.