Business and Labor Committee
March 17, 2025
Committee Chair: Sen. Kauth | Bills Heard: 5 | Full Transcript (PDF)
LB189: Paid Family and Medical Leave Insurance Act
Introduced by: Sen. Machaela Cavanaugh | Testimony: 29 proponents, 0 opponents, 12 neutral | Read bill text (PDF)
Sen. Cavanaugh seeks to create Nebraska's first paid family and medical leave program, but committee skeptics worry the voluntary structure will backfire. The bill would let employees and employers opt into a state-administered program providing partial wage replacement (90% for lower earners, 50% for higher earners) for up to 12 weeks of leave for childbirth, serious illness, or military exigency. The state would seed the program with $5.55 million, expecting repayment once the fund becomes self-sustaining through payroll deductions.
Why it matters: Nebraska lags behind 13 states and D.C. that already offer paid leave. Supporters say 80% of Nebraska workers lack access, forcing families to choose between caregiving and income. But senators questioned whether a voluntary program makes economic sense—why would employers contribute when state money is available?
What they're saying: - Proponents: "Only 40% of Nebraska families can afford unpaid FMLA leave. Paid leave reduces infant mortality, increases breastfeeding, and helps women avoid the motherhood penalty." Over $330 million in wages are lost annually to unpaid leave. - Skeptics: "No states run voluntary programs—all 13 mandate participation. This creates a perverse incentive where employers let workers draw state funds instead of contributing themselves." Sen. Sorrentino also raised concerns about HIPAA privacy and whether the state guarantees repayment of its $5.55 million investment.
By the numbers: 29 proponents, zero opponents, 12 neutral online comments. Fiscal note estimates 10% workforce participation (99,706 applicants), 85% approval rate (84,750 eligible), $385 million in annual benefits, requiring 32 FTEs funded by the program itself.
What's next: No vote taken. Sen. Cavanaugh indicated willingness to make program mandatory if committee prefers. Bill remains in committee pending further discussion.
Committee sentiment: Supportive: Sen. Raybould, Sen. McKinney Skeptical: Sen. Sorrentino, Sen. Kauth
Sentiment estimated from questions and comments — not stated positions.
LB370: Student-Athlete Name, Image, and Likeness Rights Act Update
Introduced by: Sen. Megan Hunt | Testimony: 2 proponents, 3 opponents, 0 neutral | Read bill text (PDF)
Sen. Hunt updates Nebraska's NIL law to let universities directly pay student-athletes, matching moves by 13 other states racing to comply with NCAA settlement. The bill removes the current prohibition on direct university compensation, establishes standards for athlete agents, requires written NIL agreements, and protects institutions from NCAA/conference sanctions for state-law-authorized activities. It does not mandate university payments—only permits them.
Why it matters: The House v. NCAA settlement ($3 billion) requires states to allow direct NIL compensation or universities cannot access settlement funds. Georgia, Illinois, Virginia, and California have already reformed their laws. Nebraska risks losing recruiting advantage if it doesn't act.
What they're saying: - Hunt: "We were the fifth state to pass NIL in 2020. Now 13 states plus D.C. allow direct compensation. Universities need state law protection from NCAA sanctions when they comply with state-authorized NIL activities." - Sorrentino: Questioned whether athletes might become employees and whether female athletes will be compensated proportionally to revenue generated by their sports.
By the numbers: 2 proponents, 3 opponents, zero neutral online comments. Bill applies to Division 1 schools only (UNL, Creighton, UNO).
What's next: No vote taken. University of Nebraska has not taken a position but continues reviewing. Sen. Hunt committed to keeping institution involved in any future developments.
Committee sentiment: Supportive: Sen. Raybould Unclear: Sen. Sorrentino, Sen. Hansen
Sentiment estimated from questions and comments — not stated positions.
LB336: Task Force on Supported Employment
Introduced by: Sen. Danielle Conrad | Testimony: 14 proponents, 0 opponents, 1 neutral | Read bill text (PDF)
Sen. Conrad revives a task force bill to tackle Nebraska's 30-point employment gap for people with disabilities, building on momentum from a 2023 study and 2024 action plan. The bill creates a temporary, volunteer task force bringing together business, labor, disability advocates, state agencies, and people with lived experience to identify barriers and recommend policy reforms. Zero fiscal note; members serve without compensation.
Why it matters: People with disabilities in Nebraska are employed at rates 30 percentage points lower than nondisabled peers. Supported employment services (job coaching, job search help) work, but benefits cliffs—where earning more income causes loss of Medicaid, SNAP, or SSI—discourage work. Task force can identify solutions.
What they're saying: - Proponents: "We have the blueprint (Dr. Mills's 2023 study), the expertise, and the will. Task force provides accountability and ensures stakeholders stay at the table." One testifier described hiring a woman with disability who declined a promotion because losing her $60,000 annual benefit (for 30 medications) would devastate her. - Sen. Hansen: Suggested task force reporting could include fiscal analysis of successful models in other states, creating "fiscally responsible" policy solutions for Legislature to consider.
By the numbers: 14 proponents, zero opponents, 1 neutral online comment. Nebraska Council on Developmental Disabilities has already hired subject matter expert; 100-person summit held September 2023.
What's next: No vote taken. Sen. Conrad open to amending reporting requirements to emphasize fiscal responsibility and policy outcomes.
Committee sentiment: Supportive: Sen. Hansen Unclear: Sen. Kauth
Sentiment estimated from questions and comments — not stated positions.
LB534: Claims Against the State of Nebraska
Introduced by: Sen. Kauth | Testimony: 1 proponents, 0 opponents, 0 neutral | Read bill text (PDF)
Committee heard first batch of state claims totaling $3.7 million, with more expected after April 11 deadline. The bill includes 3 employment discrimination settlements ($432,500), 3 workers' compensation awards ($765,000), 6 auto accident tort claims ($1.09 million), and agency debt write-offs ($1.42 million from DHHS, $120,741 from NDOT, $90,339 from Labor, $49,591 from NPERS, $14,296 from DMV, and $348,654 for ballot measure publishing). All claims have been approved by State Claims Board and Attorney General's Office.
Why it matters: Annual claims bill is routine but substantial. Largest single claim: $1 million settlement for State Patrol pursuit accident (state recovers $400,000 from excess insurance). Statute of limitations varies by claim type (4 years for 1983 civil rights claims, 2 years for tort claims).
What they're saying: - Lurz (AG's Office): "These settlements have been entered into in good faith. Money is essentially earmarked for payment." - Greenlee (DHHS): 99.98% of $1.42 million debt write-off is uncollectible due to debtor death, bankruptcy, or statute of limitations—mostly people on needs-based assistance.
By the numbers: 12 current claims; 6-7 additional claims expected after April 11. Typical annual claims bill: Legislature approves all claims.
What's next: No vote taken. Second hearing expected after April 11 when all claims due to Speaker. Bill typically prioritized by Speaker and approved by Legislature.
Committee sentiment: Unclear: Sen. Hansen, Sen. Raybould, Sen. Ibach
Sentiment estimated from questions and comments — not stated positions.
LB618: Claims Against the State of Nebraska—Disapprovals
Introduced by: Sen. Kauth | Testimony: 1 proponents, 0 opponents, 0 neutral | Read bill text (PDF)
Committee heard shell bill creating mechanism to disapprove state claims, though none currently exist. LB618 provides statutory authority for Legislature to disapprove claims that the State Claims Board has disallowed. No disapprovals have been received to date, but bill ensures process is in place if any arise before April 11 deadline.
Why it matters: Procedural necessity. While most claims are approved, statute requires mechanism for disapprovals.
What's next: No vote taken. Mr. Helget waived closing. Bill is shell bill awaiting potential disapprovals.
Session Notes
Committee Chair Kauth opened hearing and introduced committee members and pages. Vice Chair Sorrentino took over midway through when Chair Kauth had to testify in Revenue Committee. Legal Counsel Thomas Helget presented LB534 and LB618 on behalf of absent Chair Kauth. Committee will reconvene after April 11 (sixtieth day of Legislature) to hear additional claims. Written position comments deadline was 8:00 a.m. day of hearing via nebraskalegislature.gov. Committee used 3-minute light system for all testifiers.
Generated by NE Wire Service | Source: Nebraska Legislature Transcribers Office This is an AI-generated summary. Verify all claims against the official transcript.