May marks the last full month of the Legislative Session, and also the start of debate on the budget, which was placed on General File last week and will get extensive floor time starting tomorrow. The budget is required to be passed by Day 80, which falls on May 15 this year. Between now and then, we’ll keep you updated on what we’re hearing in the budget, as it moves through General File, Select File, and Final Reading. You can read the full budget recommendations from the Appropriations Committee, here (with a summary on pages 2 and 3 of the document).
To stay updated with the budget process, and other news at the State Capitol, we’d encourage you to join us for our In the Legislative Loop briefing call, a 30 minute update on all the most recent happenings from the State Capitol, as well as what to expect in the next week. This members-only opportunity gives you exclusive admission to the Capitol Rotunda and helps you understand the latest from Lincoln and how it affects your business. We’ll also answer all your questions about legislative bills and the process. Our next call is at 9am on Monday, May 19.
One of the non-budget bills that we’re focused on is LB415, which is part of the implementation of the Paid Sick Leave Initiative that voters approved in November. Currently, LB415 has passed first round debate, is sitting on Select File, and should be considered by the Legislature again in the very near future. Ballot measures often lay out big-picture policy goals in a simplified way, which can leave businesses facing a lot of uncertainty when it comes to real-world application, across a diverse set of different ways that businesses compensate their employees. LB415 seeks to clarify implementation, by defining many of the questions we’ve heard from Omaha businesses, such as when employees start accruing sick time, if and when sick time needs to be paid out, and how employees can request paid sick time. There are also issues that arise when a business or industry doesn’t have a “typical” leave system due to the requirements of their situation. Without clear answers, compliance becomes murky, and both employers and employees are left in a difficult position.
Among the items that are clarified by LB415, are that employees start accruing paid sick leave after 80 hours of employment, that employers do not have to pay out unused sick time after an employee leaves, and that if an employee stops and resumes employment within a year, their sick time balance from before is reinstated. Additionally, there are exemptions laid out in the bill, which include individual owner-operators, independent contractors, and employees working fewer than 80 hours, all of whom are not required to accrue sick time. Furthermore, employers that have more generous paid sick leave than the guidelines provided for in the initiative, do not have to provide additional leave beyond their existing policies. Finally, LB415 specifies that employees paid via commission, piece-rate, mileage, or fee-for-service accrue leave based on an average weekly pay rate, consistent with existing state law. LB415, which needed 33 votes to achieve cloture, passed General File on a 34-14 vote.
In an attempt to address several issues and move the bill more quickly on Select File, we’ve been in negotiations with various entities who have raised concerns about the version of the bill that passed on General File. We have made a great deal of progress, but there are a few outstanding issues left to resolve. We are hopeful that all parties can agree to several amendments to the bill. The best legislative compromises often leave all parties slightly unhappy, and each side will need to give something, should we achieve this agreement to move LB 415 forward without unnecessary delay.
If you’re interested in these bills, or any other legislative issues, we’d love to hear from you. While your Greater Omaha Chamber Public Policy team is hard at work right now at the State Capitol working to strengthen our business climate, never hesitate to share your insights with us on your state legislative priorities at advocacy@omahachamber.org.