05/29/2025

BREAKING: Nebraska Legislature Amends Paid Sick Leave Law—Key Requirements Still Apply

Yesterday, the Nebraska Legislature passed LB415, amending the Nebraska Healthy Families and Workplaces Act—the statewide paid sick leave law approved by voters in November 2024 that requires private employers to provide paid sick leave benefits to employees as of October 1, 2025.

Unlike Missouri lawmakers, who voted to fully repeal their voter-approved paid sick leave law, the amended version of Nebraska’s paid sick leave will still apply to a significant number of employers across the state. (Missouri’s law remains in effect until August 28, 2025, when the repeal is scheduled to take effect.)

Nebraska’s amended bill now awaits the Governor’s signature. If signed, key provisions include:

What Remains the Same:

• Accrual Rates. Eligible employees continue to accrue one hour of paid sick leave for every 30 hours worked.
• Usage Caps. The annual usage caps remain at 40 hours for small businesses and 56 hours for larger employers.
• Carryover. New policies that provide sick leave must allow all unused sick leave to carryover year to year or be paid out at the end of the year.
• Everything Else: All other core provisions of the voter-approved law—including notice requirements’, minimum increments of use, and employer recordkeeping obligations—remain unchanged.
• Deadlines. Nebraska employers will still need to prepare for the notice requirements’ deadline of September 15, 2025, and compliance date of October 1.

What Changes:

• Added Exemptions: Paid sick leave is no longer required for certain groups, including workers under 16, temporary and seasonal agricultural workers, and employees of businesses with 10 or fewer employees. The amendments also clarify that independent contractors are not covered under the new law.
• Enforcement: The NE Department of Labor will solely handle enforcement, which may include investigations and steep penalties (up to $5,000 per violation). Employees can no longer sue employers for non-compliance.
• Accrual and Carryover: If the employer’s existing policy is sufficient, the employer is not required to provide accrual or carryover beyond the existing policy.
• Compensation. Clarifications on employees paid by commission, piece-rate, mileage, or fee-for-service.
• Waiting Period. Employers can implement a small waiting period for new hires of 80 hours before benefits accrue.

Still Unanswered:

Key questions still exist around how the law applies in practice, how it interacts with existing PTO policies, and other operational issues. It also remains to be seen how the NE Department of Labor will reconcile its existing guidance with the amended law, as some provisions now conflict.

What Employers Should Do Now:

We are here to help. Our team is actively advising clients on how to interpret and apply the amended law. We can assist with:

• Auditing your current PTO or sick leave policy for compliance.

• Drafting compliant policies tailored to your business size, structure, and workforce.

• Advising on accrual, carryover, and frontloading strategies that align with your operations.

• Ensuring timely and compliant employee notice postings and recordkeeping procedures.
• Minimizing exposure to enforcement risks and administrative penalties under the new framework.

Employers should act now to update policies and prepare prior to September 15th. Additionally, you are invited to join us June 11 at McGrath North’s Masters Series: Leave and Benefits A to Z for a practical breakdown of the paid sick leave amendments and other state and federal leave obligations, including FMLA coordination, ADA considerations, and benefits integration.