Saturday, May 22, 2010

LB 829: A small victory for Nebraska's Agricultural Employers

This past session the Nebraska legislature passed LB 829 which impacts agricultural employers in the state of Nebraska. LB 829 was spearheaded by Senator Lathrop. Under Nebraska law, agricultural operations that employ fewer than ten unrelated, full-time employees are exempt from providing workers’ compensation coverage so long as they provide notice to their employees that they are exempt from the Act.

LB 829 clarifies that failure to provide notice that there is not workers’ compensation coverage will result in liability under the Nebraska Workers’ Compensation Act for the affected employee only. Without this change, failure to provide notice to one single employee resulted in liability and inclusion under the Workers’ Compensation Act for all employees (even if the other employees were provided with notice).

Despite the passage of LB 829, the bottom line is that all Nebraska agricultural employers who hire fewer than ten unrelated full-time employees must ensure that each employee signs the required notice. Moreover, to further protect yourself, employers must keep a copy of the signed notice in the employee’s personnel file.

Although LB 829 is a rather small change, lets keep our fingers crossed that this is just the start to further legislation being passed to protect Nebraska’s agricultural producers.

Tuesday, May 18, 2010

Another frivolous lawsuit against the lagging swine industry

Reports indicate that Premium Standard Farms (“PSF”) has spent approximately $40 million over the last decade developing technology after a court ordered it to sharply reduce odors at its Missouri farms.

PSF is currently treading difficult waters with a looming deadline threatening another costly lawsuit. A 1999 court settlement between PSF and an environmental group established goals wherein PSF would develop “next-generation technology” by July 31, 2010. Recently, a panel of experts approved a barn-scraper system to satisfy the goals in the court settlement. A system that would use giant scrapers to push manure into gutters, where it would be removed from the barn and trucked away. It is alleged that this system would replace the current systems that use water to flush hog manure from barns and into lagoons for treatment. However, PSF has indicated that it needs another two years to implement the system. If PSF misses the July 10 deadline, and the Missouri AG refuses to grant an extension, then the AG’s Office would be allowed to sue.

The question ultimately remains with over $40 million dollars spent addressing concerns of a minority group of environmentalists --- where does it end? Although hog prices are starting to rise, the industry is dealing with gigantic losses sustained during the past 2 years, where does the rubber meet the road? The environmentalists fail to recognize that there are over 6.8 billion mouths to feed in this global world, with protein being an essential element in the human diet.