This bill amends the Nebraska Workers' Compensation Act by updating provisions related to subrogation in third-party claims. Specifically, it allows both employers and workers' compensation insurers to be subrogated to the rights of employees or their dependents when a third party is liable for an injury or death. The bill clarifies that any recovery by the employer or insurer beyond the compensation paid, after deducting recovery expenses, must be paid to the employee or dependents and treated as an advance on future compensation. Additionally, it ensures that injured employees retain the right to sue third parties while requiring that employers or insurers who have paid compensation be included in such lawsuits for reimbursement purposes.

Furthermore, the bill establishes that settlements of third-party claims are void unless agreed upon in writing by the employee and the workers' compensation insurer or employer, or deemed fair by a court. In cases where there is no written agreement on the distribution of settlement proceeds, the court will determine the distribution, which includes specific allocations to the employee and the employer or insurer after deducting reasonable recovery expenses. The bill repeals the original sections of the law that are being amended.

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