Nebraska Legislature to Consider Adjustments to Nebraska Paid Sick Leave Law

Employment & Labor Law Practice Group

Mark Fahleson, Tara Paulson, Julie Schumacher

Back in November 2024, Nebraska voters passed an initiative titled the Nebraska Healthy Families and Workplaces Act (the “Act”) that requires many employers in the state to provide employees with paid sick time beginning October 1, 2025. Under the Act, employees earn at least one hour of paid sick time for every 30 hours worked. Small businesses (defined as fewer than 20 employees) must offer at least 40 hours of paid sick leave per year. Larger employers (defined as 20 or more employees) must offer up to 56 hours of paid sick leave per year. See our previous article for more information about the requirements of the Act.

The Act left some open issues and we anticipated that these open issues would be considered by the Nebraska Legislature. That has proven to be the case. Two legislative bills have been introduced this legislative session that look to make adjustments to the Act.

Legislative Bill 415, introduced by State Sen. Beau Ballard, would modify the Act as follows:

• Individual owner-operators, independent contractors, and those who work fewer than 80 hours in a calendar year do not count as “employees” under the Act.
• Accrued, unused paid sick time does not need to be paid out upon an employee’s separation from employment.
• Employees can begin to accrue paid sick time after 80 hours of consecutive work, instead of right away.
• Paid sick time earned prior to the law taking effect, between January 1 and October 1, would count toward an employer’s obligations under the law
• When an employee leaves employment but is rehired within the next 12 months, they can have unused paid sick leave time reinstated unless it was paid out to the employee.

LB 415 is scheduled for hearing before the Business and Labor Committee on February 24, 2025.

Legislative Bill 698, introduced by State Sen. Paul Strommen, would modify the Act as follows:

• Temporary or seasonable agricultural workers and youth under 16 years of age do not count as “employees” under the Act.
• Employers with 10 or fewer employees are exempt from the Act.
• The Nebraska Department of Labor is the sole enforcer of the Act, rather than through private actions.

The hearing on LB 698 was heard on February 3, 2025, by the Business and Labor Committee.

Employers are encouraged to continue to monitor these developments and consult with their employment and labor law counsel to review their leave policies and prepare to become compliant with Nebraska’s paid sick leave requirements next fall.

This article is provided for general information purposes only and should not be construed as legal advice. Those requiring legal advice are encouraged to consult with an attorney.

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