As a reminder to Nebraska employers, effective September 9, 2025, Nebraska law (LB 229) clarifies that certain gig workers, known as marketplace network contractors, are not considered employees under the state’s Employment Security Law. This change directly impacts how employers classify workers and manage unemployment insurance obligations.

Key Points for Employers:

• No Unemployment Insurance Obligations: Employers are not required to pay unemployment insurance taxes for qualifying gig workers, and these workers are not eligible for unemployment benefits.

• Worker Classification Requirements: To be classified as independent contractors, all the following must apply:
  • A written agreement must state the worker is an independent contractor.
  • The platform cannot set specific working hours.
  • The worker must be free to work for other platforms or employers, except while actively performing services.
  • The platform cannot terminate the contract for refusing a specific service request.

• Who This Applies To: Workers using digital platforms (e.g., Uber, Lyft, DoorDash) to connect with customers, and who do not work at a physical location operated by the platform in Nebraska.

Why This Matters:

• Cost Savings: Reduces employer costs by excluding qualifying gig workers from unemployment insurance requirements.

• Operational Flexibility: Allows businesses to scale their workforce without traditional employment constraints.

• Compliance Risk: Misclassifying workers who do not meet all criteria could result in penalties.

For additional information:

• NE LB229 – Exclude marketplace network contractors working for marketplace network platforms from the Employment Security Law

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