June 3, 2025
Employment & Labor Practice Group
Tara Paulson, Julie Schumacher, Mark Fahleson
Last week the Nebraska Legislature passed LB 415 with a vote 33 to 16. The bill has been presented to the Governor for signature. Many employers are asking how this law will impact their organization. The information below will help provide initial guidance. Please sign up for and attend our webinar on June 10, 2025 at 10:00 a.m. https://attendee.gotowebinar.com/register/506999552930716252, where we will cover go through frequently asked questions and additional legal and practical guidance for your organization to comply with this new law.
First a little background. As you may recall, in November 2024, Nebraska voters passed an initiative titled the Nebraska Healthy Families and Workplaces Act (the “Act”) requiring 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 https://www.remboltlawfirm.com/news/frequently-asked-questions-the-new-nebraska-paid-sick-leave-law for more information about the requirements of the Act. As we’ve previous reported https://www.remboltlawfirm.com/news/nebraska-legislature-to-consider-adjustments-to-nebraska-paid-sick-leave-law, the Act left some open issues that the Nebraska Legislature considered and debated this legislative session.
Now for the changes. Legislative Bill 415 excludes certain workers and certain employers from receiving and providing paid sick leave benefits. First, the following workers are excluded from eligibility for paid sick leave: independent contractors, individuals under 16 years old, individuals employed in agricultural employment that is seasonal or temporary, and individual owner-operators. Second, employers with 10 or fewer employees are excluded from the requirement to provide paid sick leave.
LB 415 also clarifies a significant unknown in the initial Act. More specifically, we now have confirmation that employers are not required to pay accrued, but unused sick leave upon separation of employment. LB 415 also clarified that any paid sick leave provided after January 1, 2025 and before October 1, 2025, is counted towards fulfilling the employer’s obligation to provide paid sick leave.
LB 415 provides that eligible employees begin earning paid sick leave after 80 hours of consecutive employment. The law also specifies how employers are to calculate accrual of paid sick leave for employees paid on a commission, piece-rate, mileage or fee-for-service basis and employees who are exempt from overtime and don’t track hours worked.
Finally, LB 415 removed an employee’s ability to file a private right of action against their employer for failure to comply with the law. Enforcement of the law and citations can only be issued by the Nebraska Department of Labor.
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.
