Adopt the Nebraska Worker Adjustment and Retraining Notification Act and the Health Care Staffing Agency Registration Act and change provisions of the Employment Security Law, the In the Line of Duty Compensation Act, the Non-English-Speaking Workers Protection Act, and the State Miscellaneous Claims Act
LB921 is a broad labor and employment bill that creates two new statutory frameworks in Nebraska: the Nebraska Worker Adjustment and Retraining Notification Act and the Health Care Staffing Agency Registration Act. The WARN-style provisions require covered employers to give advance notice before a business closing or mass layoff, generally 90 days’ notice, with detailed written notice to affected workers, worker representatives, and the Department of Labor. The bill defines key terms such as business closing, mass layoff, employment loss, and single site of employment, and it sets out exceptions and reductions to the notice period for circumstances such as unforeseeable business events, natural disasters, strikes, lockouts, and certain good-faith efforts to obtain capital or business. It also establishes enforcement through the Department of Labor, with civil penalties for violations and no court injunction remedy against a closing or layoff.
The health care staffing agency provisions require agencies operating in Nebraska to register annually with the Department of Labor, pay registration fees, and certify compliance with the act. The bill imposes operational requirements on staffing agencies, including verifying worker credentials and licensing, maintaining records, carrying liability and workers’ compensation coverage, and prohibiting noncompete clauses and certain fee or liquidated-damages provisions in contracts with workers or health care entities. It also authorizes the commissioner to investigate complaints, conduct audits, issue citations, assess penalties, and revoke registrations for violations, while creating a public database of registered agencies.
LB921 also makes conforming changes to several existing laws. It amends the Employment Security Law to update definitions of employment and disqualification rules, including provisions related to suitable work, part-time work, and certain worker classifications such as direct sellers and marketplace network contractors. It revises the Non-English-Speaking Workers Protection Act to require employers recruiting non-English-speaking workers to provide interpreters or bilingual employees and referral support. In addition, it changes the State Miscellaneous Claims Act to allow counties to file claims for prosecution costs arising from correctional institution incidents, and it amends the In the Line of Duty Compensation Act to refine eligibility and claims procedures for public safety officers killed in the line of duty.
The bill’s overall impact is to expand employer notice obligations, regulate staffing agencies serving the health care sector, and adjust several related labor, unemployment, and claims statutes. It shifts more oversight to the Department of Labor and the Commissioner of Labor, creates new fee-supported cash fund activity, and adds public reporting and enforcement mechanisms. Because it also includes detailed definitions and exceptions, the bill affects a wide range of employers, staffing agencies, health care entities, workers, and public-sector claimants.
The general sentiment around LB921 appears strongly favorable in the Legislature, as reflected by repeated adoption of amendments and final passage on a 37-12 vote. The vote history suggests broad support for the bill’s core labor and health care staffing provisions, though not unanimous. The main points of contention appear to have centered on the scope and regulatory burden of the new requirements, especially the WARN notice rules, the staffing agency registration and compliance mandates, and the bill’s treatment of independent contractor-style arrangements and worker classification issues. The failed floor amendment and motion indicate some lawmakers sought to alter the bill more substantially, but the chamber ultimately advanced and passed it with a clear majority.
LB921 amends Nebraska labor and employment law by adding a new employer notice regime for plant closings and mass layoffs, creating a new registration and oversight system for health care staffing agencies, and revising several related statutes governing unemployment insurance, worker protections, claims against the state, and line-of-duty compensation. It places new duties on covered employers, staffing agencies, and the Department of Labor, while also creating enforcement tools, civil penalties, fee collections, and a public database of registered staffing agencies.
The bill appears to have been generally well received, with strong vote margins on amendments and final passage indicating broad legislative support. The final 37-12 vote suggests the bill was not controversial enough to block passage, but it did draw meaningful opposition from a minority of senators. Overall, the sentiment was favorable toward strengthening worker notice rights and regulating health care staffing agencies, while some members likely objected to the breadth of the mandates and the bill’s impact on employers and staffing models.
The main areas of contention were the new 90-day notice requirements for business closings and mass layoffs, the exceptions that can shorten or eliminate notice, and the enforcement structure that relies on civil penalties rather than injunctive relief. The health care staffing agency provisions also likely raised concerns about registration fees, compliance obligations, liability coverage, recordkeeping, and limits on contract terms such as noncompetes and liquidated damages. More broadly, the bill’s changes to worker classification, unemployment eligibility, and non-English-speaking worker protections suggest debate over how far the state should go in regulating employers and staffing intermediaries.