This bill amends the Nebraska Workers' Compensation Act by updating provisions related to subrogation in third-party claims. It specifies that when a third party is liable for an employee's injury or death, both the employer and the workers' compensation insurer are entitled to subrogation rights. The bill clarifies that the recovery by the employer or insurer is not limited to the compensation amount paid, allowing them to recover any amount the employee or dependents could have claimed. Additionally, it ensures that any excess recovery after deducting expenses is paid to the employee or dependents and treated as an advance on future compensation.

Furthermore, the bill outlines the conditions under which a settlement of a third-party claim is valid, requiring written agreement from the employee and the workers' compensation insurer or employer, or a court determination of fairness in the absence of such agreement. It also establishes a clear distribution process for settlement proceeds if there is no agreement, detailing how the proceeds should be allocated among the employee, employer, and insurer. The bill repeals the original sections of the law that are being amended, thereby harmonizing the provisions within the Workers' Compensation Act.

Statutes affected:
Introduced: 48-118, 48-118.04