Senator Cavanaugh introduces voluntary paid family and medical leave plan for Nebraska

Senator Mikaela Cavanaugh introduced LB189 to the Business and Labor Committee, proposing a statewide paid family and medical leave program administered by the Nebraska Department of Labor.

The bill would create a voluntary insurance‑style program funded primarily through employee payroll contributions, with employers allowed (but not required) to contribute. Participating workers could receive partial wage replacement for qualifying events such as their own serious illness, caring for a family member, birth or placement of a child, and certain military exigencies. Cavanaugh told the committee the program would be “100% voluntary” for employers and employees and modeled administratively on state unemployment insurance systems.

The proposal includes a one‑week waiting period and would allow up to 12 weeks of leave for full‑time or intermittent qualifying events. Benefits are calculated as a percentage of a worker’s average weekly wage compared with the state average weekly wage: wages at or below the state average (cited by the introducer as $671) would be reimbursed at roughly 90%; wages above that threshold would receive a smaller percentage (discussed as approximately 50% in committee exchange). Cavanaugh said erroneously paid benefits could be reclaimed or offset from future payments and that a covered individual who presents false statements would be…