Gig workers bill advances, crackdown on Chinese influence heard

By Fred Knapp , Senior Reporter/Producer Nebraska Public Media

Feb. 19, 2025, 6 p.m. ·

Nebraska legislators prepare to vote Wednesday (Photo by Fred Knapp, Nebraska Public Media News) — Nebraska legislators prepare to vote Wednesday. (Photo by Fred Knapp, Nebraska Public Media News)

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The Nebraska Legislature gave second-round approval Wednesday to a bill declaring gig workers like Uber drivers are independent contractors, not employees. And a public hearing was held on a proposal aimed at cracking down on Chinese and other foreign influence in Nebraska.

It’s been a bit of a slog for Sen. Robert Hallstrom’s bill, classifying gig workers like Uber, Lyft or Doordash drivers as independent contractors. That makes them ineligible for benefits like unemployment insurance, but preserves the flexibility some value in terms of working hours and time commitment. Hallstrom described it simply.

“The bill is designed to clarify that individuals engaged in the marketplace network platform are independent contractors, and we accomplish this objective by excluding the services of such workers from the definition of employment under our unemployment insurance laws,” he said.

Critics, including Sen. Danielle Conrad, say the bill is designed to lock in advantages companies already enjoy under existing law, to the detriment of workers who need better conditions. Conrad challenged her colleagues to vote no, or red, against ending a filibuster, and to oppose to the bill.

“What senators will use their power to lift up by voting red? What senators will use their power to help out by voting red, and what senators will use their power to help the powerful over the power list by voting green?” she asked.

It takes the votes of 33 senators – two-thirds of the 49-member Legislature – to overcome a filibuster. In the end, that’s exactly what Hallstrom got, both to overcome the filibuster and advance the bill. It will still require one more round of voting before being sent to the governor.

Wednesday afternoon, the Government, Military and Veterans Affairs Committee held a hearing on a wide-ranging proposal aimed at exposing and controlling the influence of China and other foreign countries on Nebraska. Sen. Eliot Bostar introduced the bill, LB664, for Gov. Jim Pillen.

Among other provisions, it would require people working as agents for foreign countries, including public relations people, to register with the Attorney General.

It would enhance penalties for crimes, including assault and stalking, if they were committed for a foreign country. That’s something supporters of the bill say China does to intimidate Chinese students abroad.

One provision of the bill that caused a fair amount of discussion is a requirement that state, university and public college employees fill out a form every year saying that they are not an agent of a foreign principal from an adversary nation or foreign terrorist organization.

Sen. Megan Hunt questioned Kenny Zoeller, the head of Pillen’s policy research office, about that.

“What if an employee refuses to sign the affidavit because they think it's silly, or it's an infringement on their free speech rights, or what if they don't want to sign it?” Hunt asked.

"That's a great question. Admittedly, I haven't necessarily contemplated that, okay, so I could work to try to get an answer to you after,” Zoeller said.

Sen. John Cavanaugh put the question in a larger context.

“What's the appropriate amount of intrusion into our citizens privacy to crack down on China?” he asked.

Retired General Richard Evans, who now works at the University of Nebraska’s National Strategic Research Institute, said there’s a balance to be struck between privacy and security.

“The bill puts a tool in our tool box, our kit, that we can use to fine tune over time," Evans said. "In other words, you have to launch the missile to guide it to the target. What we're doing is essentially getting it off the rails so that we can eventually hit the target we're looking for, which is to protect our citizens, our critical infrastructure, our industries, all the great things that we enjoy here in Nebraska."

Cavanaugh also said the annual reporting requirement reminded him of an episode in Chinese history.

“Having everybody sign an affidavit every year, every other year, seems a little like in my mind, I'm thinking Cultural Revolution,” Cavanaugh said.

During the Cultural Revolution in the late 1960s, Chinese were encouraged to turn in family members for disloyalty, and academics were denounced.

Jacqueline Deal, a supporter of the bill who said she had researched Chinese tactics for the Department of Defense, said filing an annual statement was an appropriate way to combat China’s current aggressive recruitment in higher education and state government.

“To me, it's not that crazy, or it's not that onerous to just every year attest you haven't succumbed to this political warfare strategy,” she said.

The committee took no immediate action on the bill.