Workers' compensation laws provide money and medical benefits to an employee who has an injury as a result of an accident, injury or occupational disease on-the-job. Workers' compensation is designed to protect workers and their dependents against the hardships from injury or death arising out of the work environment. It is intended to benefit the employee and employer alike. The employee receives money (usually on a weekly or biweekly basis) and medical benefits in exchange for forfeiting the common law right to sue the employer. The employer benefits by receiving immunity from court actions against them by the employee in exchange for accepting liability that is limited and determined. The question of negligence or fault is usually not at issue.

Who is covered by the workers compensation law?

The Nebraska Workers' Compensation Act applies to the State of Nebraska, to every governmental agency created by it, and to every employer in the state employing one or more employees in the regular trade, business, profession, or vocation of the employer. Thus, virtually all employees are covered by the workers' compensation law including employees of private industry, state and local government, part-time employees, minors, and employees of charitable organizations.

There are a few exceptions:
Federal employees, railroad employees, most volunteers, and independent contractors are not covered under the Nebraska Workers' Compensation law. Farm and ranch laborers and household domestic servants are covered under the Nebraska Workers' Compensation law only if the employer elects to provide worker's compensation insurance for them.

Self-employed individuals, sole proprietors, partners, and limited liability company members may elect to be covered under the Nebraska Workers' Compensation law. To elect coverage such a person must file a written election with the insurer from whom they purchase workers' compensation insurance coverage.

Corporate executive officers of Nebraska corporations owning at least 25 percent of the corporation's common stock may elect to be excluded from the Nebraska Workers' Compensation law. To be excluded a corporate officer must file a written waiver with the Nebraska Workers' Compensation Court and the corporation.

Executive officers of Nebraska nonprofit corporations who receive annual compensation of one thousand dollars or less from the corporation are not considered employees of the corporation under the Nebraska Workers' Compensation Act unless they elect to be covered. To elect coverage such officers must file a written election with the secretary of the corporation.

When is an employee entitled to Nebraska workers comp benefits?

An injured employee who is covered by the Nebraska Workers' Compensation Act may obtain benefits if:

• the injury was caused by an accident or disease that arose out of and in the course of his or her employment;
• the employee was not willfully negligent at the time of the injury; the employment was in the usual course of the trade, business, profession, or occupation of the employer;
• and the injury occurred in Nebraska;
• or the employer was performing work in Nebraska or the employment was principally localized within this state, whether or not the injury occurred in Nebraska;
• or the contract of hire was made in Nebraska and the employer was engaged in business or performing work in Nebraska, whether or not the injury occurred in Nebraska.

If an employee dies as a result of a work-related injury, the employee's dependents may also be entitled to benefits under the act.

For detailed information about the Nebraska Workers Compensation law, see the Nebraska Workers Compensation Court Frequently Asked Questions website.

If you would like more information about workers compensation for your farm or business, please contact us at 800-627-2241.