Neb. Rev. Stat. » Chapter 48
Nebraska Revised Statutes

Neb. Rev. Stat. § 48-125 (2026)

Compensation; method of payment; payment by prepaid card; agreement; disclosure of fees or charges; election to rescind agreement; delay; appeal; attorney's fees; interest

✓ current as of July 2026
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(1) Except as hereinafter provided, all amounts of compensation payable under the Nebraska Workers' Compensation Act shall be payable periodically in accordance with the methods of payment of wages of the employee at the time of the injury or death or by a method of payment as provided in subsection (2) of this section. Such payments shall be sent directly to the person entitled to compensation or his or her designated representative except as otherwise provided in section 48-149 or subsection (2) of this section.

(2)(a) After an injury or death subject to the Nebraska Workers' Compensation Act, the employer, workers' compensation insurer, or risk management pool and the employee, the other person entitled to compensation, or a legal representative acting on behalf of such employee or other person entitled to compensation may enter into a written or electronic agreement that periodic or lump-sum payments to the employee or other person entitled to compensation may be made by check or by direct deposit, prepaid card, or similar electronic payment system.

(b) Payments made by direct deposit, prepaid card, or similar electronic payment system pursuant to this subsection shall not be subject to attachment or garnishment or held liable in any way for any debts, except as provided in section 48-149; and an agreement pursuant to this subsection shall include notice of this fact. If an amount is withheld pursuant to section 48-149, sufficient information to identify the jurisdiction, the case number or similar identifying information, and the amount withheld shall be provided to the employee or other person entitled to compensation or his or her legal representative at or near the time of withholding.

(c) Prior to entering into an agreement pursuant to this subsection for payment by prepaid card, the employer, workers' compensation insurer, or risk management pool shall provide to the employee or other person entitled to compensation information regarding the locations where such card may be used by the employee or other person.

(d) Pursuant to an agreement under this subsection, compensation may be transferred by electronic funds transfer or other electronic means to the trust account of an attorney representing the employee or other person entitled to compensation, for the benefit of such employee or other person. The payment or transfer shall include or be accompanied by information sufficient to identify the nature of the payment being made, including the employer, workers' compensation insurer, or risk management pool and the employee or other person entitled to compensation.

(e) If an employer, workers' compensation insurer, or risk management pool imposes any fees or other charges relating to payment by direct deposit, prepaid card, or a similar electronic payment system, prior to entering into an agreement pursuant to this subsection the employer, workers' compensation insurer, or risk management pool shall disclose such fees or charges to the employee or other person entitled to compensation.

(f) Any payment or transfer made pursuant to this subsection by direct deposit, prepaid card, or similar electronic payment system shall be in the full amount of the lump-sum or periodic payment awarded or paid pursuant to section 48-121 to the employee or other person entitled to compensation.

(g) A prepaid card offered by the employer, workers' compensation insurer, or risk management pool shall:

(i) Allow the employee or other person entitled to compensation to apply, initiate, transfer, and load payments with no charge by the employer, workers' compensation insurer, or risk management pool;

(ii) For the initial prepaid card, be distributed or delivered to the employee or other person entitled to compensation with no charge by the employer, workers' compensation insurer, or risk management pool; and

(iii) Provide the employee or other person entitled to compensation, with respect to each payment made to the prepaid card in accordance with this subsection, at least one method of accessing the full payment without fees.

(h) An employee, another person entitled to compensation, or a legal representative acting on behalf of such employee or other person entitled to compensation may elect at any time to rescind the agreement under this subsection regarding the method of payment by providing written or electronic notice of such rescission to the employer, workers' compensation insurer, or risk management pool that is a party to such agreement. If such election is made, the employer, workers’ compensation insurer, or risk management pool shall change the method of payment to the method of payment of wages of the employee at the time of the injury or death under subsection (1) of this section as soon as practicable after receiving the information necessary to do so and in a manner that allows the employer, workers’ compensation insurer, or risk management pool to comply with the requirements of subsection (3) of this section without making a delinquent payment. The employer, workers’ compensation insurer, or risk management pool is not required to rescind any payment transaction already made or made to comply with subsection (3) of this section.

(i) An employer, a workers' compensation insurer, or a risk management pool or an agent of any such entity shall not engage in unfair, deceptive, or abusive practices in relation to the method of payment. No employer, workers' compensation insurer, risk management pool, or agent of any such entity shall discharge, penalize, or in any other manner discriminate against any employee or other person entitled to compensation because such employee or other person has not consented to receive payments by check or by direct deposit, prepaid card, or a similar electronic payment system.

(j) An employer, workers' compensation insurer, or risk management pool that elects to make payment using a prepaid card shall comply with the requirements of 12 C.F.R. part 1005, as such part existed on April 1, 2018.

(3) Fifty percent shall be added for waiting time for all delinquent payments after thirty days' notice has been given of disability or after thirty days from the entry of a final order, award, or judgment of the Nebraska Workers' Compensation Court, except that for any award or judgment against the state in excess of one hundred thousand dollars which must be reviewed by the Legislature as provided in section 48-1,102, fifty percent shall be added for waiting time for delinquent payments thirty days after the effective date of the legislative bill appropriating any funds necessary to pay the portion of the award or judgment in excess of one hundred thousand dollars.

(4)(a) Whenever the employer refuses payment of compensation or medical payments subject to section 48-120, or when the employer neglects to pay compensation for thirty days after injury or neglects to pay medical payments subject to such section after thirty days' notice has been given of the obligation for medical payments, and proceedings are held before the compensation court, a reasonable attorney's fee shall be allowed the employee by the compensation court in all cases when the employee receives an award. Attorney's fees allowed shall not be deducted from the amounts ordered to be paid for medical services nor shall attorney's fees be charged to the medical providers.

(b) If the employer files an appeal from an award of a judge of the compensation court and fails to obtain any reduction in the amount of such award, the Court of Appeals or Supreme Court shall allow the employee a reasonable attorney's fee to be taxed as costs against the employer for such appeal.

(c) If the employee files an appeal from an order of a judge of the compensation court denying an award and obtains an award or if the employee files an appeal from an award of a judge of the compensation court when the amount of compensation due is disputed and obtains an increase in the amount of such award, the Court of Appeals or Supreme Court may allow the employee a reasonable attorney's fee to be taxed as costs against the employer for such appeal.

(d) A reasonable attorney's fee allowed pursuant to this subsection shall not affect or diminish the amount of the award.

(5) When an attorney's fee is allowed pursuant to this section, there shall further be assessed against the employer an amount of interest on the final award obtained, computed from the date compensation was payable, as provided in section 48-119, until the date payment is made by the employer. For any injury occurring prior to August 30, 2015, the interest rate shall be equal to the rate of interest allowed per annum under section 45-104.01, as such rate may from time to time be adjusted by the Legislature. For any injury occurring on or after August 30, 2015, the interest rate shall be equal to six percentage points above the bond investment yield, as published by the Secretary of the Treasury of the United States, of the average accepted auction price for the first auction of each annual quarter of the twenty-six-week United States Treasury bills in effect on the date of entry of the judgment. Interest shall apply only to those weekly compensation benefits awarded which have accrued as of the date payment is made by the employer. If the employer pays or tenders payment of compensation, the amount of compensation due is disputed, and the award obtained is greater than the amount paid or tendered by the employer, the assessment of interest shall be determined solely upon the difference between the amount awarded and the amount tendered or paid.

(6) For purposes of this section:

(a) Direct deposit means the transfer of payments into an account of a financial institution chosen by the employee or other person entitled to compensation; and

(b) Prepaid card means a prepaid debit card that provides access to an account with a financial institution established directly or indirectly by the employer, workers' compensation insurer, or risk management pool to which payments are transferred.

Notes of Decisions
Cited in 247 cases (9 in the last 5 years), 1931–2025 · leading case: Holdsworth v. Greenwood Famers Co-op, 835 N.W.2d 30 (Neb. 2013).
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Holdsworth v. Greenwood Famers Co-op, 835 N.W.2d 30 (Neb. 2013). · cites it 37× “The w ­ aiting-time penalty and attorney fees for waiting-time proceedings provided under Neb. Rev. Stat. § 48-125 (Cum. Supp. 2012) are rights under the Nebraska Workers’ Compensation Act.”
Bituminous Cas. Corp. v. Deyle, 451 N.W.2d 910 (Neb. 1990). · cites it 75× “*915 Further, the Workers' Compensation Court concluded that Neb.Rev.Stat. § 48-125 (Reissue 1988) is limited to compensation payable under the provisions of the Nebraska Workers' Compensation Act and does not apply to delinquent payment of a medical or hospital expense.”
Mendoza v. Omaha Meat Processors, 408 N.W.2d 280 (Neb. 1987). · cites it 38× “See Neb.Rev.Stat. § 48-125 (Reissue 1984). We affirm in part and in part reverse and remand with direction.”
Bower v. Eaton Corp., 301 Neb. 311 (Neb. 2018). · cites it 14× “" PARTIAL WAITING-TIME PENALTY AWARDED The court awarded Bower a waiting-time penalty pursuant to Neb. Rev. Stat. § 48-125 (3) (Cum. Supp. 2016), but only in relation to Eaton's failure to timely pay workers' compensation benefits for the December 2015 surgery and corresponding…”
Dragon v. Cheesecake Factory, 300 Neb. 548 (Neb. 2018). · cites it 15× “Thereafter, Dragon filed a motion in the Workers' Compensation Court seeking a late payment penalty of $2,500 under § 48-139(4) and an award of attorney fees under Neb. Rev. Stat. § 48-125 (Cum. Supp. 2016).”
Koterzina v. Copple Chevrolet, Inc., 542 N.W.2d 696 (Neb. 1996). · cites it 58× “The Fund is an employer within the meaning of § 48-125. Sherard, supra ; Pollard v. Wright's Tree Service, Inc.”
Harmon v. Irby Constr. Co., 604 N.W.2d 813 (Neb. 1999). · cites it 26× “The review panel concluded that Neb.Rev.Stat. § 48-125 (Reissue 1998) permitted a reasonable attorney fee for the collection of delinquent medical bills, but did not entitle a claimant to an automatic award of all attorney fees, and therefore remanded to the trial judge for a…”
Mosher v. Whole Foods Mkt., 317 Neb. 26 (Neb. 2024). · cites it 45× “Determining the amount for attorney fees under Neb. Rev. Stat. § 48-125 (4)(a) (Reissue 2021) is - 27 - Nebraska Supreme Court Advance Sheets 317 Nebraska Reports MOSHER V.”
Smith v. Fremont Contract Carriers, Inc., 358 N.W.2d 211 (Neb. 1984). · cites it 22× “The plaintiff then filed a motion to amend the award to provide for penalty payments, attorney fees, and interest under the provisions of Neb.Rev.Stat. § 48-125 (Supp.1983), which had been authorized by 1983 Neb.”
Boring v. Zoetis LLC, 309 Neb. 270 (Neb. 2021). · cites it 26× “A “rea- sonable controversy” for the purpose of Neb. Rev. Stat. § 48-125 (Cum. Supp. 2016) exists if (1) there is a question of law previously unanswered by the Supreme Court, which question must be answered to determine a right or liability for disposition of a claim under the…”
Picard v. P & C Grp. 1, 306 Neb. 252 (Neb. 2020). · cites it 18× “Whether a reasonable controversy exists under Neb. Rev. Stat. § 48-125 (Cum. Supp. 2016) is a question of fact.”
Martinez v. Cmr Constr. & Roofing of Texas, 302 Neb. 618 (Neb. 2019). · cites it 6× “On February 10, the compensation court entered partial summary judgment in favor of Martinez, finding that Martinez was entitled to "a reasonable attorney's fee **623 pursuant to Neb. Rev. Stat. § 48-125 for [CMR's] failure to pay the medical bill from [a medical center in…”
Show all 247 citing cases →
— Neb. Rev. Stat. § 48-125(1) — 33 cases
Bituminous Cas. Corp. v. Deyle, 451 N.W.2d 910 (Neb. 1990). “*915 Further, the Workers' Compensation Court concluded that Neb.Rev.Stat. § 48-125 (Reissue 1988) is limited to compensation payable under the provisions of the Nebraska Workers' Compensation Act and does not apply to delinquent payment of a medical or hospital expense.”
Koterzina v. Copple Chevrolet, Inc., 542 N.W.2d 696 (Neb. 1996). “The Fund is an employer within the meaning of § 48-125. Sherard, supra ; Pollard v. Wright's Tree Service, Inc.”
Miller v. E.M.C. Ins. Companies, 610 N.W.2d 398 (Neb. 2000).
D'QUAIX v. Chadron State Coll., 725 N.W.2d 558 (Neb. 2007).
Blizzard v. Chrisman's Cash Register Co., 623 N.W.2d 655 (Neb. 2001).
— Neb. Rev. Stat. § 48-125(1)(a) — 4 cases
Bower v. Eaton Corp., 301 Neb. 311 (Neb. 2018). “" PARTIAL WAITING-TIME PENALTY AWARDED The court awarded Bower a waiting-time penalty pursuant to Neb. Rev. Stat. § 48-125 (3) (Cum. Supp. 2016), but only in relation to Eaton's failure to timely pay workers' compensation benefits for the December 2015 surgery and corresponding…”
Herrington v. PR VENTURES, LLC, 781 N.W.2d 196 (Neb. 2010).
Est. of Elox v. Paul Johnson & Sons Cattle Co. (Neb. Ct. App. 2014).
Bower v. Eaton Corp., 301 Neb. 311 (Neb. 2018).
— Neb. Rev. Stat. § 48-125(1)(b) — 7 cases
Bower v. Eaton Corp., 301 Neb. 311 (Neb. 2018). “" PARTIAL WAITING-TIME PENALTY AWARDED The court awarded Bower a waiting-time penalty pursuant to Neb. Rev. Stat. § 48-125 (3) (Cum. Supp. 2016), but only in relation to Eaton's failure to timely pay workers' compensation benefits for the December 2015 surgery and corresponding…”
Holdsworth v. Greenwood Famers Co-op, 835 N.W.2d 30 (Neb. 2013). “The w ­ aiting-time penalty and attorney fees for waiting-time proceedings provided under Neb. Rev. Stat. § 48-125 (Cum. Supp. 2012) are rights under the Nebraska Workers’ Compensation Act.”
Dragon v. Cheesecake Factory, 300 Neb. 548 (Neb. 2018). “Thereafter, Dragon filed a motion in the Workers' Compensation Court seeking a late payment penalty of $2,500 under § 48-139(4) and an award of attorney fees under Neb. Rev. Stat. § 48-125 (Cum. Supp. 2016).”
Armstrong v. State, 290 Neb. 205 (Neb. 2015).
Bower v. Eaton Corp., 301 Neb. 311 (Neb. 2018).
— Neb. Rev. Stat. § 48-125(2) — 20 cases
Koterzina v. Copple Chevrolet, Inc., 542 N.W.2d 696 (Neb. 1996). “The Fund is an employer within the meaning of § 48-125. Sherard, supra ; Pollard v. Wright's Tree Service, Inc.”
Bituminous Cas. Corp. v. Deyle, 451 N.W.2d 910 (Neb. 1990). “*915 Further, the Workers' Compensation Court concluded that Neb.Rev.Stat. § 48-125 (Reissue 1988) is limited to compensation payable under the provisions of the Nebraska Workers' Compensation Act and does not apply to delinquent payment of a medical or hospital expense.”
Dragon v. Cheesecake Factory, 300 Neb. 548 (Neb. 2018). “Thereafter, Dragon filed a motion in the Workers' Compensation Court seeking a late payment penalty of $2,500 under § 48-139(4) and an award of attorney fees under Neb. Rev. Stat. § 48-125 (Cum. Supp. 2016).”
Sherard v. State, 509 N.W.2d 194 (Neb. 1993).
Stacy v. Great Lakes Agri Mktg., Inc., 753 N.W.2d 785 (Neb. 2008).
— Neb. Rev. Stat. § 48-125(2)(a) — 6 cases
Bower v. Eaton Corp., 301 Neb. 311 (Neb. 2018). “" PARTIAL WAITING-TIME PENALTY AWARDED The court awarded Bower a waiting-time penalty pursuant to Neb. Rev. Stat. § 48-125 (3) (Cum. Supp. 2016), but only in relation to Eaton's failure to timely pay workers' compensation benefits for the December 2015 surgery and corresponding…”
Holdsworth v. Greenwood Famers Co-op, 835 N.W.2d 30 (Neb. 2013). “The w ­ aiting-time penalty and attorney fees for waiting-time proceedings provided under Neb. Rev. Stat. § 48-125 (Cum. Supp. 2012) are rights under the Nebraska Workers’ Compensation Act.”
Armstrong v. State, 290 Neb. 205 (Neb. 2015).
Bower v. Eaton Corp., 301 Neb. 311 (Neb. 2018).
Simmons v. Precast Haulers (Neb. 2014).
— Neb. Rev. Stat. § 48-125(3) — 4 cases
Boring v. Zoetis LLC, 309 Neb. 270 (Neb. 2021). “A “rea- sonable controversy” for the purpose of Neb. Rev. Stat. § 48-125 (Cum. Supp. 2016) exists if (1) there is a question of law previously unanswered by the Supreme Court, which question must be answered to determine a right or liability for disposition of a claim under the…”
Mosher v. Whole Foods Mkt., 317 Neb. 26 (Neb. 2024). “Determining the amount for attorney fees under Neb. Rev. Stat. § 48-125 (4)(a) (Reissue 2021) is - 27 - Nebraska Supreme Court Advance Sheets 317 Nebraska Reports MOSHER V.”
Russell v. Kerry, Inc., 775 N.W.2d 420 (Neb. 2009).
Walton v. Concrete Supply (Neb. Ct. App. 2025).
— Neb. Rev. Stat. § 48-125(4) — 4 cases
Mosher v. Whole Foods Mkt., 317 Neb. 26 (Neb. 2024). “Determining the amount for attorney fees under Neb. Rev. Stat. § 48-125 (4)(a) (Reissue 2021) is - 27 - Nebraska Supreme Court Advance Sheets 317 Nebraska Reports MOSHER V.”
Boring v. Zoetis LLC, 309 Neb. 270 (Neb. 2021). “A “rea- sonable controversy” for the purpose of Neb. Rev. Stat. § 48-125 (Cum. Supp. 2016) exists if (1) there is a question of law previously unanswered by the Supreme Court, which question must be answered to determine a right or liability for disposition of a claim under the…”
Sellers v. Reefer Sys., 305 Neb. 868 (Neb. 2020).
Walton v. Concrete Supply (Neb. Ct. App. 2025).
— Neb. Rev. Stat. § 48-125(4)(a) — 3 cases
Mosher v. Whole Foods Mkt., 317 Neb. 26 (Neb. 2024). “Determining the amount for attorney fees under Neb. Rev. Stat. § 48-125 (4)(a) (Reissue 2021) is - 27 - Nebraska Supreme Court Advance Sheets 317 Nebraska Reports MOSHER V.”
Fentress v. Westin, Inc., 304 Neb. 619 (Neb. 2019).
Liljestrand v. Dell Enters. (Neb. Ct. App. 2021).
— Neb. Rev. Stat. § 48-125(4)(b) — 2 cases
Sellers v. Reefer Sys., 305 Neb. 868 (Neb. 2020).
Mendoza v. Honeywell Am. Meter Co. (Neb. Ct. App. 2024).
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