State Codes and Statutes

State Codes and Statutes

Statutes > Nebraska > Chapter48 > 48-145

48-145. Employers; compensationinsurance required; exceptions; effect of failure to comply; self-insurer;payments required; deposit with State Treasurer; credited to General Fund.To secure the payment of compensation under the NebraskaWorkers' Compensation Act:(1) Every employer in the occupations described in section 48-106, except the State of Nebraska and any governmental agency created bythe state, shall either (a) insure and keep insured its liability under suchact in some corporation, association, or organization authorized and licensedto transact the business of workers' compensation insurance in this state,(b) in the case of an employer who is a lessor of one or more commercial vehiclesleased to a self-insured motor carrier, be a party to an effective agreementwith the self-insured motor carrier under section 48-115.02, (c) be a memberof a risk management pool authorized and providing group self-insurance ofworkers' compensation liability pursuant to the Intergovernmental Risk ManagementAct, or (d) with approval of the Nebraska Workers' Compensation Court, self-insureits workers' compensation liability.An employer seeking approval to self-insure shall make applicationto the compensation court in the form and manner as the compensation courtmay prescribe, meet such minimum standards as the compensation court shalladopt and promulgate by rule and regulation, and furnish to the compensationcourt satisfactory proof of financial ability to pay direct the compensationin the amount and manner when due as provided for in the Nebraska Workers'Compensation Act. Approval is valid for the period prescribed by the compensationcourt unless earlier revoked pursuant to this subdivision or subsection (1)of section 48-146.02. Notwithstandingsubdivision (1)(d) of this section, a professional employer organization shallnot be eligible to self-insure its workers' compensation liability. Thecompensation court may by rule and regulation require the deposit of an acceptablesecurity, indemnity, trust, or bond to secure the payment of compensationliabilities as they are incurred. The agreement or document creating a trustfor use under this section shall contain a provision that the trust may onlybe terminated upon the consent and approval of the compensation court. Anybeneficial interest in the trust principal shall be only for the benefit ofthe past or present employees of the self-insurer and any persons to whomthe self-insurer has agreed to pay benefits under subdivision (11) of section 48-115 and section 48-115.02. Any limitation on the termination of a trustand all other restrictions on the ownership or transfer of beneficial interestin the trust assets contained in such agreement or document creating the trustshall be enforceable, except that any limitation or restriction shall be enforceableonly if authorized and approved by the compensation court and specificallydelineated in the agreement or document.Notwithstanding any other provision of the Nebraska Workers'Compensation Act, a three-judge panel of the compensation court may, afternotice and hearing, revoke approval as a self-insurer if it finds that thefinancial condition of the self-insurer or the failure of the self-insurerto comply with an obligation under the act poses a serious threat to the publichealth, safety, or welfare. The Attorney General, when requested by the administratorof the compensation court, may file a motion pursuant to section 48-162.03for an order directing a self-insurer to appear before a three-judge panelof the compensation court and show cause as to why the panel should not revokeapproval as a self-insurer pursuant to this subdivision. The Attorney Generalshall be considered a party for purposes of such motion. The Attorney Generalmay appear before the three-judge panel and present evidence that the financialcondition of the self-insurer or the failure of the self-insurer to complywith an obligation under the act poses a serious threat to the public health,safety, or welfare. The presiding judge shall rule on a motion of the AttorneyGeneral pursuant to this subdivision and, if applicable, shall appoint judgesof the compensation court to serve on the three-judge panel. The presidingjudge shall not serve on such panel. Appeal from a revocation pursuant tothis subdivision shall be in accordance with section 48-185. No such appealshall operate as a supersedeas unless the self-insurer executes to the compensationcourt a bond with one or more sureties authorized to do business within theState of Nebraska in an amount determined by the three-judge panel to be sufficientto satisfy the obligations of the self-insurer under the act;(2) An approved self-insurer shall furnish to the State Treasureran annual amount equal to two and one-half percent of the prospective losscosts for like employment but in no event less than twenty-five dollars. Prospectiveloss costs is defined in section 48-151. The compensation court is the solejudge as to the prospective loss costs that shall be used. All money whicha self-insurer is required to pay to the State Treasurer, under this subdivision,shall be computed and tabulated under oath as of January 1 and paid to theState Treasurer immediately thereafter. The compensation court or designeeof the compensation court may audit the payroll of a self-insurer at the compensationcourt's discretion. All money paid by a self-insurer under this subdivisionshall be credited to the General Fund;(3) Every employer who fails, neglects, or refuses to complywith the conditions set forth in subdivision (1) or (2) of this section shallbe required to respond in damages to an employee for personal injuries, orwhen personal injuries result in the death of an employee, then to his orher dependents; and(4) Any security, indemnity, trust, or bond provided by aself-insurer pursuant to subdivision (1) of this section shall be deemed asurety for the purposes of the payment of valid claims of the self-insurer'semployees and the persons to whom the self-insurer has agreed to pay benefitsunder the Nebraska Workers' Compensation Act pursuant to subdivision (11)of section 48-115 and section 48-115.02 as generally provided in the act. SourceLaws 1913, c. 198, § 46, p. 599; R.S.1913, § 3687; Laws 1917, c. 85, § 21, p. 215; Laws 1921, c. 122, § 1, p. 528; C.S.1922, § 3069; C.S.1929, § 48-146; Laws 1935, c. 57, § 31, p. 202; C.S.Supp.,1941, § 48-146; R.S.1943, § 48-145; Laws 1957, c. 205, § 1, p. 723; Laws 1963, c. 286, § 1, p. 860; Laws 1971, LB 572, § 8; Laws 1986, LB 811, § 67; Laws 1988, LB 1146, § 1; Laws 1997, LB 474, § 4; Laws 1999, LB 216, § 9; Laws 2000, LB 1221, § 8; Laws 2005, LB 13, § 8; Laws 2005, LB 238, § 10; Laws 2010, LB579, § 16. Cross ReferencesIntergovernmental Risk Management Act, see section 44-4301. AnnotationsA cause of action for retaliatory demotion exists when an employer demotes an employee for filing a workers' compensation claim. Trosper v. Bag 'N Save, 273 Neb. 855, 734 N.W.2d 703 (2007).Nebraska recognizes a public policy exception to the at-will employment doctrine to allow an action for retaliatory discharge when an employee has been discharged for filing a workers' compensation claim. Jackson v. Morris Communications Corp., 265 Neb. 423, 657 N.W.2d 634 (2003).Pursuant to subsection (3) of this section, where employee alleges that employer has failed to maintain workers' compensation insurance and employer introduces no evidence to refute employee's allegation, district court may exercise jurisdiction over employee's petition for damages for personal injuries sustained by employee in course of working for employer. Schweitzer v. American Nat. Red Cross, 256 Neb. 350, 591 N.W.2d 524 (1999).Under Nebraska statute, any workmen's compensation policy is required to cover all of the employer's liability and all compensation awarded under the act. Neeman v. Otoe County, 186 Neb. 370, 183 N.W.2d 269 (1971).Owner of building used in conducting owner's business who contracts for certain repairs to said building is an employer within act, unless the contractor was required to procure compensation insurance for protection of his employees. New Masonic Temple Assn. v. Globe Indemnity Co., 134 Neb. 731, 279 N.W. 475 (1938).Where petition did not show when contract of employment was made, failure to allege election or failure to procure insurance in common-law action for damages did not require dismissal of suit. Smith v. Fall, 122 Neb. 783, 241 N.W. 560 (1932).Noninsuring employer cannot take advantage of his own default to detriment of employee. Dietz Club v. Niehaus, 110 Neb. 154, 193 N.W. 344 (1923).Noninsuring employer is liable either for damages at common law or for compensation, at employee's option. Avre v. Sexton, 110 Neb. 149, 193 N.W. 342 (1923).Provision that employer must insure or furnish proof of ability to pay compensation is constitutional. Nedela v. Mares Auto Co., 110 Neb. 108, 193 N.W. 345 (1923).Defense that plaintiff employee had waived right to sue at common law by accepting payment of hospital and doctor bill was not sustained. Brown v. York Water Co., 104 Neb. 516, 177 N.W. 833 (1920).