This bill amends the Nebraska Workers' Compensation Act by updating provisions related to subrogation in third-party claims. Specifically, it allows employers or 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 the recovery by the employer or insurer is not limited to the compensation amount paid, and any excess recovery must be paid to the employee or dependents 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 be included in such suits for reimbursement purposes.

Furthermore, the bill modifies the process for settling third-party claims by stipulating that settlements are void unless agreed upon in writing by the involved parties or deemed fair by a court. In cases where there is no written agreement on the distribution of settlement proceeds, the court will determine a fair distribution, which includes specific allocations to the employee and the employer or insurer after deducting reasonable expenses. The bill repeals the original sections of the law that are being amended, thereby streamlining the legal framework surrounding these claims.

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