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LB 197

Change provisions relating to disqualification for benefits, claim determinations, and claim redeterminations under the Employment Security Law

109th Legislature (2025-2026) Introduced by Jared Storm

Nebraska LB 197 moves initial unemployment determinations to the Department of Labor and expands redeterminations to include BAM audit findings, speeding decisions.

Approved by Governor on March 11, 2025
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Bill Summary · LB 197

Summary — LB 197 (2025)

Title: Change provisions relating to disqualification for benefits, claim determinations, and claim redeterminations under the Employment Security Law
Introduced by: Sen. Jared Storm (23)
Status: Passed Legislature (Final Reading 47–1–1); presented to Governor March 6, 2025; approved by Governor March 11, 2025

Purpose / Intent

LB 197 modernizes certain procedures under Nebraska’s Employment Security Law (Neb. Rev. Stat. §§ 48-601 to 48-683) by (1) clarifying how labor-dispute disqualifications and related claims are handled, (2) shifting initial determination authority from an individual adjudicator to the Department of Labor, and (3) refining when and how redeterminations of benefit decisions may be made — including adding federal benefit accuracy measurement (BAM) audit findings as a basis for redetermination.

Key provisions and changes

  • Amends sections 48-628.09, 48-630, and 48-631; repeals the original versions.
  • 48-628.09:
    • Retains disqualification where unemployment is due to a stoppage of work from a labor dispute.
    • Adds explicit language that "all claims arising out of the same alleged labor dispute may be considered at the same time."
  • 48-630:
    • Changes who makes claim determinations from a single adjudicator appointed by the commissioner to the Nebraska Department of Labor (department) as a whole.
    • Retains required content of determinations (entitlement, weekly benefit amount, benefit year start, maximum payable).
    • Continues existing notice and appeal framework; benefits need not be withheld while appeal is pending.
  • 48-631:
    • Maintains a role for an adjudicator but limits that role to redeterminations.
    • Expands redetermination grounds to include errors identified by a review conducted as part of the federal benefit accuracy measurement (BAM) program (defined as the quality control program required under 20 C.F.R. part 602).
    • Keeps existing redetermination limits: must be within two years of original determination and notice must be provided; appeals from redeterminations are limited to the matters involved in the change.

Who is affected

  • Claimants (unemployed individuals claiming UI benefits): potential for faster initial determinations and continued access to benefits while appeals proceed; subject to redetermination based on BAM audit findings.
  • Employers and labor organizations: consolidated handling of claims arising from the same labor dispute may affect employer/union disputes and notifications.
  • Nebraska Department of Labor: gains authority to issue determinations department-wide and may implement automated decision processes for undisputed facts (as described in committee materials).
  • Administrative/adjudicative staff: roles shifted; adjudicators focused on redeterminations.

Procedural timeline & testimony

  • Introduced: Jan 14, 2025; heard Jan 27, 2025 (Business & Labor Committee).
  • Proponents included Sen. Storm, Nebraska Department of Labor, NFIB–NE, Grocery Industry Association. No opponents recorded in committee report.
  • Advanced through Legislature and approved by Governor on March 11, 2025.

Notes / Considerations

  • Committee materials indicated the change enables the Department to use automated systems for many initial determinations when facts are undisputed; the bill preserves human adjudication for disputed or redetermined matters.
  • Redetermination based on BAM findings aligns state process with federal quality-control reviews, allowing correction of errors identified by federal-required audits.

Compiled from official sources — confirm details with the bill’s official record.

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