Short answer: Yes. Nebraska's act covers every employer with one or more employees in its regular business, including out-of-state employers doing work in Nebraska. Part-timers and minors count. The main exceptions are interstate railroads, household domestic servants, and farms below a 10-employee, 13-week test. Penalties include fines of up to $1,000 a day and lawsuits.
One employee is enough
Neb. Rev. Stat. §48-106 applies the Nebraska Workers' Compensation Act to the state, its agencies, and every resident employer, or nonresident employer performing work in Nebraska, that "employs one or more employees in the regular trade, business, profession, or vocation" of the employer.
The Nebraska Workers' Compensation Court's employer FAQ says virtually all employees are covered, including part-timers, minors and charity employees.
Who's outside the act
Section 48-106(2) excludes:
- Interstate or foreign-commerce railroads.
- Household domestic servants in a private residence.
- Farms that employ only related employees.
- Farms with unrelated employees, unless they have 10 or more unrelated full-time employees on each working day for 13 calendar weeks in a year, consecutive or not.
- Occasional reciprocal work between farm operations.
The farm rules in detail
Definitions from LB 210 (2003), per the Court:
| Term | Meaning |
|---|---|
| Agricultural operation | Growing crops, fruit or horticultural products, or keeping or feeding animals for livestock production |
| Full-time employee | Works half or more of the regularly scheduled hours each pay period |
| Related employee | A spouse, or a relative within the third degree by blood or marriage, such as a parent, child, sibling, grandchild, aunt, uncle, niece or nephew |
Three follow-on rules matter for growing farms:
- Timing. The act applies 30 days after the 13th qualifying week.
- Staying covered. Coverage must continue for the rest of that year and the next full calendar year, even if headcount drops.
- Leaving. Returning to exempt status requires posting a notice for at least 90 days stating when coverage ends.
An exempt farm that doesn't buy coverage must give each unrelated employee, at hiring or more than 30 days before any injury, a written notice the employee signs. The statutory text reads: "In this employment you will not be covered by the Nebraska Workers' Compensation Act and you will not be compensated under the act if you are injured on the job or suffer an occupational disease. You should plan accordingly." Without it, the farm is liable under the act for that worker.
Owners can elect coverage
Under §48-115(10), sole proprietors, partners, LLC members and self-employed people working substantially full time may bring themselves under the act with a written election filed with the insurer. It carries onto later policies from that insurer until terminated in writing.
How to secure coverage
The Court lists only three methods:
- A policy from a private insurer licensed by the Nebraska Department of Insurance, including through the Nebraska Workers Compensation Insurance Plan (NWCIP).
- Court-approved self-insurance, open to corporations or political subdivisions with at least five years in business under their current structure, at least 100 employees, a strong financial base and a positive safety program.
- For lessors of commercial vehicles leased to a Nebraska self-insured motor carrier, an agreement that the carrier pays benefits to injured drivers. Drivers only.
No state fund is currently licensed in Nebraska, the Court notes. Your insurer notifies the Court of your policy, and anyone can check coverage with its free Proof of Coverage lookup.
Penalties
Per the Court's FAQ, any combination of:
- A civil fine of up to $1,000 per violation, with each day counted separately.
- If criminally charged, up to one year in jail, a $1,000 fine, or both.
- An injunction barring the business from operating in Nebraska until it complies.
- A lawsuit by the injured employee in district court, where the employer loses its common-law defenses.
Contractors and 1099 workers
True independent contractors needn't be covered, but the act doesn't define the term. The Nebraska Supreme Court applies a 10-factor test case by case. After an injury, the First Report is due to the Court within 10 days of notice.
Bottom line
In Nebraska, the first employee triggers coverage; farms watch the 10-employee, 13-week line. Learn more about workers' compensation insurance.
Contact Alishahi Insurance or call (877) 711-4545. Read more about insurance in Nebraska.
Frequently asked questions
How many employees before workers' comp is required in Nebraska?
One. The act applies to employers with one or more employees in their regular business.
Do farms need workers' comp in Nebraska?
Only if they have 10 or more unrelated full-time employees on each working day for 13 weeks in a year. Exempt farms must give a signed notice.
Does Nebraska have a state workers' comp fund?
No. The Court says no state fund is licensed in Nebraska. Coverage comes from private insurers, the NWCIP, or approved self-insurance.
Can a sole proprietor get workers' comp in Nebraska?
Yes. Owners working substantially full time can elect coverage in writing with their insurer.
What is the penalty for no workers' comp in Nebraska?
Civil fines up to $1,000 per day, possible criminal charges, an injunction, and employee lawsuits without common-law defenses.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.