Nebraska: Marketplace Network Platform for Independent Contractors
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APPLIES TO Employers with Employees in NE |
EFFECTIVE September 9, 2025 |
QUESTIONS? Contact HR On-Call |
Quick Look
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Discussion:
Nebraska’s legislature passed LB 229 which classifies workers who use a marketplace network platform as independent contractors under the state’s unemployment statute, if certain conditions are met. The law is set to go into effect on September 9, 2025.
With limited exceptions, the law defines a “marketplace network contractor” as a person who: (1) enters into a written agreement with a marketplace network platform to use the platform to connect with individuals or entities seeking services; (2) performs services for individuals or entities in exchange for compensation or payment; and (3) does not perform services at a physical business location operated by the marketplace network platform in Nebraska. The law defines “marketplace network platform” as “a person that maintains a digital network to facilitate services by marketplace network contractors to individuals or entities seeking those services and accepts requests from the public only through the platform’s digital network or mobile application, and not by telephone, facsimile, or in-person at a retail location.”
To be classified as an independent contractor under Nebraska’s law, the following four conditions must be met:
- The marketplace network contractor and marketplace network platform agree in writing that the marketplace network contractor is an independent contractor and not an employee of the marketplace network platform;
- The marketplace network platform does not unilaterally prescribe specific hours during which the marketplace network contractor must be available to accept service requests submitted through the marketplace network platform’s digital network;
- The marketplace network platform does not prohibit the marketplace network contractor from engaging in outside employment or performing services through other marketplace network platforms except while the marketplace network contractor is performing services through the marketplace network platform’s digital network; and
- The marketplace network platform is not allowed to terminate the contract of the marketplace network contractor for not accepting a specific service request.
Other employers who are not using a “marketplace network platform” will continue to be subject to the state’s ABC test for determining whether an individual is an employee or an independent contractor for unemployment purposes.
Action Items
- Review worker classifications with legal counsel to determine appropriate designation as employee or independent contractor.
Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2025 ManagEase