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LB 229

Exclude marketplace network contractors working for marketplace network platforms from the Employment Security Law

109th Legislature (2025-2026) Introduced by Bob Hallstrom

Nebraska excludes certain gig workers under marketplace platforms from “employment” for unemployment insurance, treating them as independent contractors if specific conditions are

Approved by Governor on March 11, 2025
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Bill Summary · LB 229

Summary — LB 229 (2025)

Title: Exclude marketplace network contractors working for marketplace network platforms from the Employment Security Law
Introduced by: Sen. Bob Hallstrom (Hallstrom, 1)
Status: Enacted — Approved by Governor March 11, 2025

Purpose

LB 229 amends Neb. Rev. Stat. §48-604 (definition of “employment” for the Employment Security Law) to exclude certain gig economy workers who contract with digital marketplace platforms from the statutory definition of “employment.” The bill treats those workers as independent contractors for purposes of Nebraska unemployment insurance law, subject to specified limits on platform control.

Key provisions

  • Adds a new exclusion to the statutory definition of employment for services provided by a "Marketplace Network Contractor" for a "Marketplace Network Platform" when all of the following conditions are met:
    • There is a written agreement stating the contractor is not an employee of the platform.
    • The platform does not unilaterally set the contractor’s working hours.
    • The platform does not prohibit the contractor from obtaining other employment except while actively providing services for the platform.
    • The platform may not terminate the contractor’s contract for refusing a specific service request.
  • Definitions:
    • Marketplace Network Contractor: a person who (a) enters a written agreement with a platform, (b) uses the platform’s digital network to connect with customers, (c) performs services via that digital network for payment, and (d) does not perform services at a physical business location operated by the platform in Nebraska.
    • Marketplace Network Platform: maintains a digital network (e.g., mobile app or website) that receives service requests exclusively through the digital network (not by phone, fax, or in-person retail locations) and facilitates contractor–customer connections.
  • Exclusion clarification: the bill specifically excludes (i.e., does not treat as a marketplace network contractor) persons transporting certain freight or sealed containers for compensation (language in committee materials indicated a carve‑out for these transport activities).

Who is affected

  • Gig economy workers who use app-based platforms (examples cited in hearings: drivers and couriers for apps similar to Uber, Lyft, DoorDash) — such workers meeting the statute’s conditions would be treated as independent contractors for unemployment insurance purposes.
  • Marketplace platforms — would not be treated as employers for these specific contractors and generally would not be liable for employer contributions/taxes tied to employee status for those contractors.
  • Nebraska Department of Labor / Unemployment Insurance system — may see changes in eligibility determinations and employer tax base composition.
  • Employers and labor organizations — testified both for and against the change during committee hearings (proponents included industry representatives such as Uber; opponents included the Nebraska State AFL‑CIO).

Legislative and procedural timeline

  • Introduced: January 14, 2025; referred to Business and Labor Committee; hearing January 27, 2025.
  • Advanced out of committee to General File.
  • Floor actions included adoption of amendment AM112, various motions, and cloture motions.
  • Passed Final Reading in the Legislature: March 10, 2025 (vote: 33–15–1).
  • Presented to Governor March 10, 2025; Approved by Governor March 11, 2025.
  • The bill repeals the original version of §48-604 as amended.

Potential policy impacts (straightforward implications)

  • Workers meeting the statutory criteria would generally be ineligible for unemployment insurance as employees; platforms would not be treated as employers for those services, affecting employer unemployment tax obligations and claimant eligibility.
  • The statutory limits on platform control are intended to delineate when gig‑economy work qualifies for the exclusion; enforcement and benefit-eligibility determinations will rely on those factual tests.

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

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