In November 2024, Nebraska voters approved the Healthy Families and Workplaces Act (“Act”), which will take effect on October 1, 2025. The Act requires certain Nebraska employers to provide a minimum amount of paid sick time for eligible employees and their families. During the most recent legislative session, the Nebraska Unicameral passed LB 415, amending the language of the Act. Governor Pillen has signed LB 415 into law.
The attorneys at Knudsen Law Firm have outlined key provisions of the Act to help employers prepare for compliance.
Notice Requirements
Employers must provide written notice of the Act to employees by September 15, 2025, or at the start of employment—whichever is later. Additionally, employers must display a poster containing the required information.
If an employer does not maintain a physical workplace, or if an employee works remotely or through a web/app-based platform, notice must be provided electronically or posted conspicuously within the platform.
The Nebraska Department of Labor (NDOL) offers a free model employee notice and poster in both English and Spanish:
https://dol.nebraska.gov/LaborStandards
Who is Considered an “Employer” Under the Act?
As amended by LB 415, the Act applies only to employers with 11 or more employees. “Small businesses” are defined as those with 11 to 19 employees.
Whether an employer meets the 11- or 20-employee threshold may be reviewed by NDOL on a case-by-case basis. For example, if an employer operates multiple entities under a holding company, NDOL may evaluate whether each entity should be treated separately, considering factors such as tax filings, unemployment insurance, and workers’ compensation coverage.
Who is Considered an “Employee” Under the Act?
LB 415 also clarified that not all workers are entitled to accrue paid sick time. To qualify, an employee—whether full-time, part-time, or temporary—must work at least 80 hours in Nebraska within a calendar year.
The following individuals are exempt from coverage under the Act:
- Individual owner-operators
- Independent contractors
- Seasonal or temporary agricultural workers
- Employees covered by the federal Railroad Unemployment Insurance Act
- Individuals under the age of 16
- Individuals working fewer than 80 hours in Nebraska annually
Accrual of Paid Sick Time
Accrual begins once an employee has worked 80 hours in Nebraska. After that point, employees earn 1 hour of paid sick time for every 30 hours worked. Paid sick time accrues at the same rate during sick leave as during regular work hours.
- Small businesses (11–19 employees) must provide at least 40 hours of paid sick time per year.
- Employers with 20 or more employees must provide at least 56 hours per year.
Importantly, any paid sick time provided between January 1 and September 30, 2025, counts toward the employer’s obligation for the 2025 calendar year.
Employees must be allowed to carry over unused sick time to the following year, as defined by the employer. While there is no cap on carryover, employers are not required to allow use of more than the annual maximum (40 or 56 hours) in any given year.
How Can Paid Sick Time Be Used Under the Act?
Under the Act, paid sick time may be used for the following purposes:
- Employee Health Needs
- Treatment or recovery from a mental or physical illness, injury, or health condition
- Medical diagnosis, care, or treatment
- Preventive medical care
- Family Member Care
- Caring for a family member with a mental or physical illness, injury, or health condition
- Assisting a family member in obtaining medical diagnosis, care, or treatment
- Providing preventive medical care for a family member
- Attending school or care-related meetings for a child with a health condition
- Public Health Emergencies
- Closure of the employee’s workplace due to a public health order
- Caring for a child whose school or care facility is closed due to a public health order
- Self-isolation or caring for a family member in isolation when advised by health authorities or a medical professional due to potential risk of spreading a communicable disease
Definition of “Family Member”
The Act defines “family member” broadly to include individuals related by blood or those with a close personal association equivalent to a family relationship. Examples include:
- A biological, adopted, foster, or stepchild; a legal ward; or a child for whom the employee stands in loco parentis
- A biological, foster, step, or adoptive parent; or a legal guardian of the employee or the employee’s spouse
- A person who stood in loco parentis to the employee or their spouse during childhood
- A legally recognized spouse
- A grandparent, grandchild, or sibling (biological, foster, adoptive, or step) of the employee or their spouse
Notice and Documentation Requirements
- Notice: Employees are not required to provide notice unless the employer has a written policy outlining reasonable procedures. If such a policy is not provided to the employee, use of paid sick time cannot be denied.
- Replacement Workers: Employers may not require employees to find a replacement for their scheduled hours.
- Documentation: Employers may request reasonable documentation only if paid sick time is used for three consecutive workdays. Typically, this would be a note from a healthcare provider confirming the necessity of the leave. Exceptions apply in exigent circumstances where documentation cannot be reasonably obtained.
Use and Compensation of Sick Time
- Paid sick time must be available in hourly increments. Smaller increments may be used if supported by the employer’s payroll system.
- Employers may choose to pay out unused sick time at year-end, provided the employee begins the new year with at least the minimum required balance. Compensation must be at the employee’s regular rate of pay.
- For employees compensated by commission, mileage, piece-rate, or fee-for-service, the hourly rate is calculated using the average weekly rate under Neb. Rev. Stat. § 48-126, then converted to an hourly rate based on a 40-hour workweek.
Separation of Employment
In most cases, employers are not required to pay out unused sick time upon separation. However, if the employer’s leave policy combines vacation and sick leave, payout may be required under the Nebraska Wage Payment and Collection Act.
Employer Tracking Requirements
Employers must provide employees with a statement each pay period showing:
- Available paid sick time
- Sick time used
- Sick time compensation received
This requirement may be fulfilled through an online system accessible to employees.
Existing Leave Policies
Employers with existing paid time off policies that meet or exceed the Act’s requirements are not obligated to provide additional sick time or allow accrual beyond their current policy.
However, if an employer uses an attendance point or absence control system, paid sick time cannot be counted as an absence that leads to disciplinary action. Once an employee has exhausted their paid sick time under the Act, the employer may apply its standard attendance policy.
Enforcement
The Act eliminates the private right of action for employees. Instead, enforcement is handled by the NDOL. Employees may file complaints using forms available on the NDOL website.
If a violation is found, NDOL may issue a citation with an administrative penalty:
- Up to $500 for a first-time offense
- Up to $5,000 for subsequent violations
Employers have 15 working days to contest a citation.
Final Note
The Nebraska Healthy Families and Workplaces Act represents a significant shift in employee rights and employer responsibilities. Employers subject to the Act should carefully review their current leave policies to ensure compliance before the October 1, 2025 deadline.
If you have questions about the Act or would like assistance reviewing your leave policy, please contact the attorneys at Knudsen Law Firm.
By: Anthony Budell