Nebraska senators debate LB455 privacy and subrogation changes; motion to indefinitely postpone fails

The Nebraska Legislature spent much of the day in heated floor debate over LB455, a workers' compensation measure that would make first reports of injury confidential and change how third‑party recoveries are split. Senators defeated a motion to indefinitely postpone the bill, 12–20, and the session moved on to consider a committee amendment that combines LB455 with LB313.

The bill’s sponsor, Senator Hallstrom, told colleagues the committee amendment would bring certainty to payouts by combining LB313’s subrogation rules with LB455’s privacy provisions. “We will have a situation where the attorney fees and reasonable expenses are paid off the top. One third, the first one third after that goes directly to the employee,” Hallstrom said, describing the proposed statutory distribution.

Opponents said the bill would tilt the system against injured workers and reduce their ability to learn about and exercise legal rights. “This is a solution in search of a problem,” Senator Dungan said, urging support for the motion to indefinitely postpone. Dungan cited industry revenue to argue the bill benefits insurers: “My understanding is that in 2023, workers' compensation carriers brought in over $43,000,000,000 in net premium…The average settlement amount…was about $29,000.”

Senator Conrad warned the measure would “hide workplace injuries” and deprive injured Nebraskans — particularly in counties with few attorneys — of timely information needed to seek counsel. “Individual litigants should have an advisement that they can seek legal counsel,” Conrad said, arguing that restricting access to first injury reports risks worsening the vulnerability of those hurt on the job.

Supporters said the bill would reduce uncertainty and disparate outcomes caused by case‑by‑case judicial allocations. Senator Kautz, speaking for the committee amendment AM678, summarized its two main components: confidentiality limits for first injury reports and a three‑step statutory order for distributing third‑party recovery proceeds (after recovery costs are deducted, one‑third to the employee; next the employer or insurer is reimbursed for compensation already paid; any remainder goes to the employee).

Several senators raised a separate concern about uninsured/underinsured motorist coverage where an employee driving for work is injured. “Under this bill the employer and the workers comp insurance would be able to access your personal, automotive uninsured and underinsured coverage…that doesn't sit right with me,” Senator John Kavanaugh said, describing the risk that employees could be asked to shoulder costs intended to be covered by employers.

Floor procedure produced several roll‑call tallies. After extended debate and a brief period with the chamber under call, the motion to indefinitely postpone (MO76) failed when the Clerk recorded 12 ayes and 20 nays. A subsequent motion to reconsider was also put to the roll and was not adopted.

The committee amendment AM678 — which the committee described on the floor as making first injury reports confidential except to specified parties and replacing a judge’s "fair and equitable" distribution with the three‑step statutory distribution — was then opened for consideration. Senators on both sides said they expected further amendments and negotiations. The Legislature adjourned with floor work on the committee amendment and the bill's future pending more debate and possible changes.

Next procedural steps: the floor will take up AM678 (the committee amendment combining LB455 and LB313) and any subsequent motions or amendments; proponents and opponents signaled ongoing negotiations and said they would seek additional votes after those exchanges. The body adjourned until the next scheduled session time.