Senators adopt amendment clarifying marketplace contractors; DoorDash-style 'DashMart' facilities limited to Omaha, Lincoln
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Summary
The Nebraska Legislature adopted AM30-61, with clarifying floor amendment FA11-84, to define 'marketplace network contractors' and preserve independent-contractor status for app-based drivers while ensuring in-store fulfillment workers are W-2 employees; the changes were added to LB9-21 and the bill advanced to engrossing.
Senators on the floor adopted an amendment that narrows how Nebraska law treats app-driven delivery contractors and clarifies the employment status of workers at app-operated brick-and-mortar fulfillment sites.
Senator Mike Sorrentino, sponsor of AM30-61, told colleagues the amendment “moderniz[es] the definition so it accurately reflects how today's app-based and platform-based work arrangements function,” while limiting the change to Omaha and Lincoln to address concerns from the Nebraska Grocery Association and others. Sorrentino said the change was intended to protect drivers’ independent-contractor status while recognizing that in-store "pickers" would remain common-law W-2 employees.
Opponents repeatedly warned the floor the amendment risked weakening worker protections or creating a carve-out for a single business model. “Not everything new is innovation,” said Senator Justin Hunt, arguing app-based companies have shifted risk onto workers and taxpayers. Senator Dungan and others said the change should have more committee vetting, citing written opposition at the committee hearing and the narrow proponent base for the originating bill (LB813).
Senator Bostar offered a floor amendment, FA11-84, to make explicit that individuals who work inside a DashMart or similar fulfillment facility are not to be treated as marketplace network contractors for purposes of the independent-contractor test. Bostar said FA11-84 “provides that extra clarification” to address concerns about misclassification.
The Senate adopted FA11-84 (recorded as 29 ayes, 1 nay) and later adopted AM30-61 (30 ayes, 8 nays). The bill as amended was advanced to E & R for engrossing (machine vote 34 ayes, 9 nays).
Proponents said the language preserves the status of drivers who use their own vehicles and schedules and avoids unintended reclassification that could reduce earning flexibility; critics said the amendment is a targeted statutory carve-out that could be broadened in practice. Senator Sorrentino said the Department of Labor examined the amendment’s indicia of employment and that the change tracks current IRS/DOL tests. Senator Conrad and others pressed for clearer drafting and noted the amendment was limited geographically to two cities to accommodate stakeholder concerns but could be extended later.
Next steps: LB9-21, with the adopted marketplace-contractor language and the clarifying FA11-84, was placed on the E & R engrossing calendar; the floor debate ended without further substantive votes on employment classification.
