Defining Employers Under the Nebraska Workers' Compensation Act

Defining Employers Under the Nebraska Workers' Compensation Act

The Nebraska Workers' Compensation Act is a critical piece of legislation designed to protect both employees and employers in the event of workplace injuries or illnesses. One of the foundational aspects of this law is the definition of who constitutes an "employer" under the act. Understanding this definition is essential for determining whether an entity is required to provide workers' compensation coverage to its employees. Whether you are an employer trying to ensure compliance or an employee seeking compensation, consulting with an Omaha workers compensation attorney can provide the necessary guidance.

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Who is Considered an Employer Under Nebraska Law?

Under Nebraska law, the definition of an "employer" is broad and encompasses various entities. According to Nebraska Revised Statute 48-114, the term "employer" includes:

1. The State of Nebraska and All Governmental Agencies: This means that any state department or agency created by the state is required to adhere to the Nebraska Workers' Compensation Act. These entities must provide workers' compensation coverage to their employees.
2. Every Person, Firm, or Corporation: This includes any public service corporation that is engaged in any trade, occupation, business, or profession as outlined in section 48-106. The key factor here is whether the entity has any person in service under any contract of hire—whether that contract is express or implied, oral or written. This broad definition ensures that almost all employers who operate within the state are required to provide workers' compensation coverage to their employees.

If you are unsure whether your business or organization falls under this definition, seeking advice from a work comp attorney Omaha NE can clarify your obligations under the law.

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Employer Obligations and Workers' Compensation Coverage

Once an entity is classified as an "employer" under Nebraska law, it is bound by the provisions of the Nebraska Workers' Compensation Act. This includes the obligation to provide workers' compensation insurance that covers medical expenses, lost wages, and rehabilitation costs for employees who are injured or become ill as a result of their work.

Employers must also ensure that they are correctly classifying their workers. Misclassification of employees as independent contractors when they are, in fact, employees can lead to significant legal consequences, including penalties and back payments for workers' compensation insurance. The distinction between an employee and an independent contractor often hinges on factors such as control over work and the nature of the employment relationship. In cases where this classification is unclear, consultation with an injury attorney Omaha can help employers navigate these complexities and avoid potential legal pitfalls.

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Legal Precedents and Employer Definitions

Nebraska courts have consistently upheld the broad definition of "employer" under the Workers' Compensation Act. For example:

• In Kaiser v. Millard Lumber, Inc. (1999), the court emphasized the importance of establishing both an employer-employee relationship under section 48-114 and the existence of a compensable injury under section 48-109 to engage the workers' compensation framework.
• In Sherlock v. Sherlock (1924), the court held that a corporation subject to the Workers' Compensation Act could be liable as an employer for injuries to workers employed by an independent contractor if the contractor was not required to procure insurance to protect its employees.

These cases underscore the importance of accurately determining employer status and ensuring compliance with workers' compensation requirements. If you're involved in a dispute over employer classification or coverage, an Omaha workers compensation attorney can provide expert legal representation.

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Employer Status in Special Circumstances

There are also specific circumstances where determining employer status becomes complex, such as when an employee is loaned to another employer or when an employer operates in multiple states. In such cases, it is crucial to establish a consensual arrangement that creates a new employer-employee relationship, or to determine which state's workers' compensation laws apply.

For instance, the case Shamburg v. Shamburg (1950) clarified that for liability to transfer from the general employer to a borrowing employer, there must be a clear and consensual arrangement establishing a new employer-employee relationship. Such complexities require careful legal consideration, and seeking the counsel of a work comp attorney Omaha NE is advisable.

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Conclusion

Understanding who qualifies as an employer under the Nebraska Workers' Compensation Act is essential for compliance and protection under the law. Whether you are an employer ensuring you meet your legal obligations or an employee seeking compensation for a workplace injury, navigating the complexities of workers' compensation law requires expert guidance. Our team of injury attorneys Omaha is here to help you understand your rights and obligations under Nebraska law.

For any questions or legal assistance related to workers' compensation, contact us today at (402) 541-5867. Our experienced attorneys are ready to provide you with the support and representation you need to navigate the complexities of workers' compensation law.