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In November of 2024, Nebraska voters overwhelmingly approved Initiative 436, which adopts the Nebraska Healthy Families and Workplaces Act (NHFWA). The act requires private employers to provide paid sick time to employees.
On June 5, 2025, Nebraska Governor Jim Pillen signed Legislative Bill 415 (LB 415) that clarifies and amends the NHFWA passed by voters, which provides earned paid sick time (PST) to most Nebraska employees.
What does this mean for you?
Under the NHFWA, most Nebraska employers must provide earned paid sick time to employees starting October 1, 2025. The law exempts employers that are federal or state governments or political subdivisions of the state.
Under the NHFWA, employees earn one hour of paid sick time for every 30 hours worked. Employers with twenty or more employees can cap accrual and use of PST at 56 hours per year. Small employers (defined by the amendment to include employers with eleven to nineteen employees) can cap accrual and use at 40 hours each year. Employees can carry over all unused PST at the end of the year, but carryover does not affect the annual accrual and use caps that are based on employer size.
LB 415 clarifies and amends the NHFWA as follows:
- Exempt employees. Seasonal and temporary workers employed in agriculture and employees under age 16 are not eligible to earn PST.
- Small Employers Exempt. Small employers with fewer than 11 employees do not have to provide PST.
- Waiting Period for Accrual. Employees begin earning PST after working 80 consecutive hours in Nebraska, but employees can use PST as it accrues.
- Existing Paid Time Off Policy. Employers are not required to provide additional paid time off under the law if they have a paid leave policy that permits employees to take paid leave in an amount that equals or exceeds what is required by the NHFWA and that can be used as paid sick time. Employers are not required to allow accrual or carryover beyond their existing paid time off policies.
- Paid Leave Provided Between January 1, 2025 through September 30, 2025. Paid time off provided by an employer on or after January 1, 2025, that can be used for the reasons covered by the law, will be counted toward the employer’s annual obligations to provide PST in 2025.
- Payout of Unused PST. The law does not require employers to pay out unused PST at the time of separation.
- No Private Right of Action. Employees do not have a private right of action under the law.
The amendment did not change other key provisions of the NHFWA including:
- Carryover. Employees may carry over all unused PST, but carryover does not affect applicable accrual and use caps based on employer size. An employer may avoid carryover by paying out all unused PST at year end and frontloading the employee’s annual allotment of PST at the beginning of the subsequent year.
- Rate of Pay. Employers must pay PST at the employee’s normal hourly rate and with the same benefits, including healthcare benefits and accrual of paid time off (including accrual of PST). For employees paid on a commission, piece-rate, mileage, or fee basis, the amount of paid sick time will be based on their average weekly rate, which will be reduced to an hourly rate assuming a 40-hour workweek.
- Reasons for Use. Employees may use PST for (1) their own or a family member’s mental or physical illness, injury, or health condition including diagnosis, treatment, and preventative care; or (2) closure of employee’s place of business or child’s school due to public health emergency.
- Notice of Use. An employer requiring notice of use of PST must have a written policy outlining a reasonable procedure for providing notice.
- Increments of Use. Employees may use PST in the smaller of one-hour increments or the smallest increment of time used to account for other types of absences.
- Documentation. Employers can request documentation to support PST use when an employee uses PST for more than three consecutive days.
- Administrative Penalties. Employers that violate NHFWA can be subject to administrative penalties of up to $500 for a first violation and up to $5,000 in the case of a second or subsequent violation. An employer with an unpaid citation is not eligible to contract with the state until the citation is paid.
Employers must provide written notice of the NHFWA by September 15, 2025, and display a poster at the employer’s worksite thereafter. Employers can provide electronic notice to remote workers or if the employer does not maintain a physical worksite.
Paid Sick Time Access
To access the Paid Sick Time Poster (English): https://dol.nebraska.gov/webdocs/Resources/Items/Poster%20Paid%20Sick%20Time.pdf
To access the Paid Sick Time Poster (Spanish):
https://dol.nebraska.gov/webdocs/Resources/Items/Poster%20Paid%20Sick%20Time%20SPANISH.pdf
To access the Paid Sick Time Notice to Employees (English):
https://dol.nebraska.gov/webdocs/Resources/Items/Paid%20Sick%20Time%20Notice%20(2).pdf
To access the Paid Sick Time Notice to Employees (Spanish):
https://dol.nebraska.gov/webdocs/Resources/Items/Paid%20Sick%20Time%20Notice%20Spanish.pdf
Have Questions?
To access the FAQs:
To access the legislature:
https://nebraskalegislature.gov/FloorDocs/109/PDF/Slip/LB415.pdf
Contact Information:
Nebraska Department of Labor – Wage & Hour Division
Call: (800) 833-7352
To Email: https://dol.nebraska.gov/ContactUs
As always, we recommend speaking with your attorney, CPA, or industry professional for further guidance.
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