Nebraska requires most employers to carry workers' compensation insurance, and unlike some states, the threshold is set at one or more employees. That's not a typo — in Nebraska, hiring your first employee triggers the workers' comp requirement. The state's workers' compensation system is administered by the Nebraska Workers' Compensation Court, and non-compliance can result in penalties, personal liability, and the loss of the exclusive remedy protection that makes workers' comp valuable for employers in the first place.
For Fremont and Dodge County businesses — where manufacturing, agriculture, healthcare, and construction all represent significant employment — understanding the workers' comp system isn't optional. It's foundational to operating legally and managing the financial risk that comes with having a workforce.
Is workers comp required in Nebraska
Yes. Nebraska Revised Statute 48-101 requires most employers to carry workers' compensation insurance if they have one or more employees. This applies to full-time and part-time employees. Unlike South Carolina, which has a four-employee threshold, Nebraska's requirement kicks in with the first hire.
Certain categories are exempt: farm and ranch laborers performing agricultural work are generally exempt from Nebraska workers' comp requirements. Domestic workers in private homes are also generally exempt. Independent contractors are not employees and don't trigger the requirement — but Nebraska courts apply specific tests to determine whether a worker is truly an independent contractor versus an employee in all but name.
General contractors in Nebraska face particular exposure. If a subcontractor doesn't maintain their own workers' comp coverage, the general contractor may be liable for benefits to the subcontractor's injured employees. Requiring certificates of insurance from every subcontractor before work begins is standard practice in the Fremont-area construction market for exactly this reason.
What workers comp covers
Workers' compensation is a no-fault system. When an employee is injured on the job, they receive benefits regardless of who caused the accident. In exchange, the employer receives exclusive remedy protection — the employee's workers' comp claim is generally their only remedy, and they can't sue the employer in most circumstances.
Medical benefits cover all necessary treatment for work-related injuries and illnesses — doctors, hospitals, surgery, physical therapy, prescriptions. There's no cap on medical benefits as long as treatment is necessary.
Temporary total disability benefits pay 2/3 of the employee's average weekly wage during the period they can't work. Nebraska's maximum weekly compensation rate was $1,134.43 for injuries occurring in 2025.
Permanent disability benefits apply for injuries that result in lasting limitations. Permanent partial disability is calculated based on impairment ratings. Serious permanent total disability cases can qualify for lifetime benefits.
Death benefits pay burial expenses and ongoing support to eligible surviving family members if an employee dies from a work-related injury.
How Nebraska workers comp rates are calculated
Workers' comp premiums in Nebraska are calculated as a rate per $100 of payroll, multiplied by the classification code for each type of work, adjusted by your experience modification factor (EMR). The EMR compares your actual claims history to what's expected for businesses like yours — a clean record produces an EMR below 1.0 (which reduces your premium), and a history of claims produces an EMR above 1.0 (which increases it).
Classification codes reflect the risk level of specific job duties. A clerical office worker and a grain elevator operator at the same company have different class codes and different rates per $100 of payroll. Getting your classifications right is one of the most directly controllable factors in your premium — misclassified employees can result in both overpayment (for employees put in a higher-risk class than their work warrants) and audit penalties (for employees put in a lower-risk class).
Nebraska workers' comp rates are approved by the state and filed through NCCI (National Council on Compensation Insurance). For 2026, most Nebraska industries have seen modest rate decreases reflecting improved claims experience.
Industries with the highest workers comp rates
In the Fremont and Dodge County area, the industries with the highest workers' comp rates are generally those with the highest physical injury risk: roofing, heavy construction, tree service, agricultural operations, and manufacturing. A Fremont manufacturing business with $500,000 in annual payroll at a mid-range class code rate might pay $7,000 to $15,000 per year in workers' comp premium. An office-based business with identical payroll might pay $2,000 to $3,000.
Workplace safety programs directly reduce workers' comp costs over time through their effect on the EMR. Every prevented claim is not just an immediate cost avoided — it's also a future premium reduction for the three years the EMR incorporates that claims year.
Get a workers comp quote for your business
Eric Luebbe Insurance Agency compares workers' compensation coverage across multiple carriers for Nebraska businesses. For a free quote on workers compensation insurance in Nebraska, call (402) 721-5454 or contact us online. We serve Fremont, Blair, Gretna, Dodge County, and the surrounding eastern Nebraska area.
