Business and Labor Committee
February 10, 2025
Committee Chair: Sen. Kauth | Bills Heard: 5 | Full Transcript (PDF)
LB299: Unemployment insurance and public benefits for work-authorized immigrants
Introduced by: Sen. Ibach | Testimony: 10 proponents, 1 opponents, 0 neutral | Read bill text (PDF)
Nebraska would join 49 other states in allowing work-authorized immigrants to access unemployment insurance under LB299. The bill would extend unemployment and retirement benefits to DACA and Temporary Protected Status recipients who pay into the system but are currently denied access—a gap unique to Nebraska. Why it matters: Nebraska faces a severe workforce shortage, and immigrant workers fill critical gaps in agriculture, health care, and other industries. Denying them earned benefits they've paid for creates unfair barriers to economic stability and workforce retention. What they're saying: Proponents argue fairness and economic necessity: "These are good people who work, pay taxes, and contribute to society," Sen. Ibach said. Business groups including the Nebraska Chamber of Commerce support the bill as workforce policy. But Interim Labor Commissioner Katie Thurber warned the bill as drafted creates federal conformity issues that could cost Nebraska employers over $400 million in lost tax credits. She said the language allows eligibility even after work permits expire, violating federal requirements. By the numbers: DACA and TPS recipients contribute over $14 million annually in state and local taxes. The fiscal note estimates $1.6 million in annual unemployment payouts, though testimony suggested the actual figure is closer to $160,000 based on current claims data. What's next: No vote was taken. Thurber indicated the Department of Labor is awaiting formal federal guidance and offered to work with Sen. Ibach on conforming language, similar to work done on a prior bill.
Committee sentiment: Supportive: Sen. Raybould Unclear: Sen. McKeon, Sen. Sorrentino
Sentiment estimated from questions and comments — not stated positions.
LB363: Apprenticeship Grant Act
Introduced by: Sen. Ibach | Testimony: 4 proponents, 0 opponents, 2 neutral | Read bill text (PDF)
LB363 would create a $4 million grant program to fund registered apprenticeships for underemployed workers receiving state assistance. The bill is modeled on Ignite Nebraska, a successful program that has moved 15 participants from $22,000 annual earnings to $54,000 within six months, with 93% retention at year two. Why it matters: Nebraska faces a severe workforce shortage, and traditional training programs aren't moving people into high-wage jobs fast enough. This bill targets workers already on state assistance, offering a pathway to self-sufficiency while filling employer demand. What they're saying: Proponents highlight Ignite's track record: 100% of graduates are off state assistance 12 months after completing the program. "When we give someone a meaningful job, we give them hope, pride, purpose, and the power to lift up their families," Ignite founder Joni Wheeler said. Neutral testifiers from the electrical workers union support the concept but proposed routing construction apprenticeships through the Workforce Development Board to prevent monopolization and ensure equitable access across contractors. By the numbers: Ignite has 15 graduates and employer partners including Blue Cross, Werner Enterprises, Methodist Health Systems, UP Railroad, and Boys Town. The program aims to serve over 100 people statewide with the requested funding. What's next: No vote was taken. Sen. Ibach indicated willingness to work with construction unions on amendments and to clarify the child care subsidy language.
Committee sentiment: Supportive: Sen. Ibach Skeptical: Sen. Kauth Unclear: Sen. Sorrentino
Sentiment estimated from questions and comments — not stated positions.
LB75: Tipped wage enforcement and protections
Introduced by: Sen. Hunt | Testimony: 2 proponents, 1 opponents, 0 neutral | Read bill text (PDF)
LB75 would establish a statutory complaint process and record-keeping requirements to enforce Nebraska's existing tipped wage law. The bill does not raise the tipped minimum wage ($2.13/hour since 1991) but adds enforcement teeth to the requirement that tips plus wages equal the standard minimum wage ($13.50/hour). Why it matters: Tipped workers are uniquely vulnerable to wage theft because they rely on customers to subsidize their wages—a burden no other worker faces. Without a clear statutory process, workers have little recourse when employers fail to make up the difference. What they're saying: Proponents cite Department of Labor data: in 2024, there were 1,735 wage complaints, 782 of which resulted in employers paying wages during investigation. "If you pay for something, you should get it," Sen. Hunt said. Opponents argue the existing complaint process is accessible and that most restaurants comply. Rich Otto of the Hospitality Association said many tipped employees earn well over $20/hour and that the bill creates unnecessary compliance burden. By the numbers: Nebraska's tipped wage has been frozen at $2.13/hour for 34 years while the standard minimum wage has increased 10 times. The state minimum wage is now $13.50/hour. What's next: No vote was taken. Sen. Hunt's closing testimony emphasized that the bill protects workers experiencing wage theft while leaving compliant employers unaffected.
Committee sentiment: Supportive: Sen. Raybould, Sen. McKinney Skeptical: Sen. Sorrentino Unclear: Sen. Ibach
Sentiment estimated from questions and comments — not stated positions.
LB45: Grant program for job training for historically underserved youth
Introduced by: Sen. McKinney | Testimony: 4 proponents, 3 opponents, 0 neutral | Read bill text (PDF)
LB45 would create a five-year pilot grant program to fund job training and mentorship for historically underserved youth, with initial focus on high-poverty urban and rural areas. The bill targets youth facing barriers such as homelessness, foster care involvement, and poverty. Why it matters: Nebraska has only 38 skilled workers available for every 100 jobs, and 38% of high school students don't know their next steps. Youth employment reduces crime, builds workforce capacity, and breaks cycles of generational poverty. What they're saying: Proponents highlight Step Up Omaha's success: 9,000 youth placed since 2008, 1,500-2,000 applications annually, and zero homicides in Omaha during summer 2024, directly correlated to the program by police leadership. "When we provide job training opportunities for youth, we all benefit," Sen. McKinney said. Opponents questioned whether the bill duplicates existing programs like Step Up, Heartland Workforce, and WIOA, and whether the $160 million in development funding for north Omaha should include job training. By the numbers: Step Up Omaha aims to provide 1,000 employment opportunities in 2025 (700 summer, 300 year-round). The program allocated $900,000 in wages to interns in 2024 alone. What's next: No vote was taken. The committee had 16 proponents, 3 opponents, and 0 neutral letters.
Committee sentiment: Supportive: Sen. Raybould, Sen. Ibach, Sen. McKinney Skeptical: Sen. Kauth
Sentiment estimated from questions and comments — not stated positions.
LB402: Unemployment insurance fraud recovery through gambling winnings offset
Introduced by: Sen. von Gillern | Testimony: 1 proponents, 0 opponents, 0 neutral | Read bill text (PDF)
LB402 would allow the Department of Labor to offset gambling winnings to recover debts from individuals who deliberately defrauded the unemployment system. The bill applies only to intentional fraud, not overpayments due to department error or honest mistakes. Why it matters: Unemployment insurance is a safety net funded by employers and workers. Individuals who defraud the system to enrich themselves should not be allowed to keep gambling winnings while owing debts to the state. What they're saying: The Department of Labor identified 295 overpayments due to deceptive activity in 2024 and recovered $2.1 million in overpayment funds. "LB402 is designed to and will in effect only impact individuals who have unjustly enriched themselves at the public's expense," Acting General Counsel Joel Green said. By the numbers: In 2024, the department detected 295 overpayments due to deceptive activity and recovered $2.1 million in overpayment funds. The bill also removes the three-year statute of limitations on offsets against future unemployment benefits. What's next: No vote was taken. Sen. von Gillern indicated he plans to introduce an amendment to ensure child support offsets continue to take priority.
Committee sentiment: Supportive: Sen. Sorrentino Unclear: Sen. Raybould
Sentiment estimated from questions and comments — not stated positions.
Session Notes
The committee heard five bills. LB299 and LB363 generated the most testimony, with 10+ proponents each. The committee took an eight-minute break between LB75 and LB45. No votes were taken on any bills during this hearing. Committee Chair Kauth noted that committee members may come and go during hearings due to other legislative obligations. Written position letters were submitted: LB299 had 46 proponents and 8 opponents; LB363 had 7 proponents and 0 opponents with 1 neutral; LB75 had 13 proponents and 2 opponents; LB45 had 16 proponents and 3 opponents; LB402 had 3 proponents and 0 opponents.
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