Nebraska: Narrowed Scope of Paid Sick Leave Law

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APPLIES TO

Employers with 11+ Employees in NE

EFFECTIVE

October 1, 2025

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Quick Look

  • Effective October 1, 2025, LB 415 amends the Healthy Families and Workplace Act (HFWA) to limit its applicability while also changing accrual rates and creating credits for employers who already provide paid sick leave to their employees.

Discussion

LB 415 amends the Healthy Families and Workplace Act (HFWA) to limit its applicability while also changing accrual rates and creating credits for employers who already provide paid sick leave to their employees. Nebraska’s paid sick leave law was one of the handful of voter-initiated paid sick leave laws that came out of the November 2024 election cycle. With the amendment, the HFWA still goes into effect October 1, 2025, but with a few less onerous requirements for employers.

 

Applicability. Employers with 10 or fewer employees are now exempt from the law. A small employer is now defined as having between 11 to 19 employees. There is still ambiguity as to whether employers count their workforce in Nebraska or also include out-of-state employees.

 

Exclusions. Individuals who work as seasonal or temporary agricultural workers are excluded from coverage, as are individuals under 16 years old.

 

Accrual. New employees start to accrue paid sick time after they have completed 80 hours of consecutive employment in Nebraska. Accrual also is not retroactive after meeting the initial waiting period.

 

Employer Credit. Paid sick time provided to employees on or after January 1, 2025 and before October 1, 2025 are counted toward an employer’s obligations under the HFWA for 2025.

 

Termination. Unused paid sick time is not required to be paid out upon an employee’s separation from employment.

 

Private Plans. Employers with paid leave policies do not have to allow an employee to accrue or carry over benefits beyond their existing paid leave policy.

 

Enforcement. The amendment removed an employee’s private right of action. The sole remedy is to file a complaint with the Nebraska Department of Labor.

 

Action Items

  1. Update paid leave policies for compliance.
  2. Update payroll processes to reflect paid leave requirements.
  3. Have appropriate personnel trained on the requirements.

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2025 ManagEase