August 6, 2025

Nebraska Paid Sick Leave Deadline Is Near: Stay Ahead with NE DOL's Latest Guidance

By: Britni Summers and Julianna Washka 

The Nebraska Department of Labor (NE DOL) has released model workplace notice and poster materials to help employers comply with the amended Nebraska Healthy Families and Workplaces Act (NHFWA) by the upcoming September 15 deadline. At the same time, the NE DOL quietly updated its FAQs, offering further clarification on several key provisions of the amended law (see our earlier Alert for details on the amendments to the NHFWA). Below, we highlight the most important takeaways from the newly issued notice and poster, along with the accompanying FAQ guidance.

 

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NE DOL Model Notice and Model Poster

Employers may use the newly released model notice and poster provided by the NE DOL, or create their own documents, to meet their statutory requirement of providing notice to employees and displaying a poster in the workplace. As a reminder, the notice and poster are two separate requirements under the law.

Notice
Written notice of employee rights under the law must be provided to all current employees by September 15, 2025, and to all new employees at the time of hire moving forward. Thus, this notice should be incorporated into all onboarding materials. For employers without a physical workplace, with remote employees, or with employees who perform work through a web-based or app-based platform, notice must be provided via electronic communication or a posting in the web-based or app-based platform.

The provided model notice by the NE DOL is now available and outlines the below information. Because the NHFWA statute is somewhat vague on the specific content required in the notice, the model notice offers valuable insight into what the NE DOL considers necessary for compliance and may effectively serve as the agency’s interpretation of the law’s notice obligations. The model notice provides the following:

• The law’s effective start date;
• the amount of paid sick leave available to employees;
• an employee’s basic rights under the law;
• minimum required accrual rates;
• minimum required time increments;
• reasons an employee may use sick leave;
• necessary procedures for an employee to use paid sick leave;
• permitted conduct employers may take under the law;
• prohibited conduct and policies by employers under the law; and
• NE DOL contact information.

Employees may become confused upon receiving the notice because the model notice is general and not tailored to a specific employer’s policies. It may appear that the employer is offering a new, separate paid sick leave benefit different from what they currently receive. To help clarify this, McGrath North has developed tailored cover letters that align with the employer’s specific policy and can be used to accompany the model notice. These cover letters explain how the employer is already complying with the law—whether through an existing PTO policy that meets the statutory requirements or through a separate compliant paid sick leave policy—and make clear that employees are not receiving additional leave beyond what is already provided.

Poster
The law also requires that, in addition to the notice, a poster must be displayed in the workplace that outlines the same rights and obligations included in the initial notice. For employers without a physical worksite, either electronic communications may satisfy the poster requirement or if the information is clearly posted on an electronic platform that is accessible to employees.

Languages
The NE DOL requires that both the workplace poster and the written notice to employees be provided in English and, if applicable, in another language. Specifically, if at least 5% of the employer’s workforce speaks a language other than English as their first language and the NE DOL has made a version of the notice or poster available in that language, then the employer must provide it in both languages. In addition to the English-language models, the NE DOL has published the model notice and poster in Spanish, making Spanish translations required for any employer whose workforce meets the 5% threshold.

Violations
Failure to provide the required written notice or workplace poster can result in citations from the NE DOL, with fines up to $500 for a first violation and $5,000 for repeat offenses. Employers with unpaid citations will also be barred from contracting with the state, and violations are publicly disclosed upon request. Note that under the amendments employees can no longer sue under the law, but the required notice still must reference that right. Ensuring timely and complete notice is essential to avoid enforcement penalties and potential employee complaints to the NE DOL.
 

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NE DOL FAQs

The NE DOL’s FAQ guidance serves as a practical tool to help employers interpret and comply with the NHFWA. These FAQs shed light on how the NE DOL interprets statutory language and offer insight into its expectations for compliance. Throughout the legislative amendment process, and particularly this summer, the NE DOL has released and re-released multiple versions of the FAQs—some reflecting minor wording changes, others introducing more substantive clarifications.

A summary of the primary differences between the previous and current versions of the FAQs is provided below. We anticipate further updates as the law takes effect and real-world questions arise. As of the date of this Alert, the most recent version of the FAQs is available here. Be sure to monitor McGrath North’s future updates, as additional changes are likely in the months ahead.

• Ask a lawyer. The NE DOL now recommends that employers consult with legal counsel to evaluate policy compliance, including whether an existing policy meets the law’s requirements.
• Business size under the law. For purposes of determining business size, regardless of whether the employer is located in-state or out-of-state, the NE DOL will only include individuals who worked at least 80 hours in Nebraska for the employer in a calendar year.
• Employers with fluctuating business size. The FAQs no longer provide any guidance or clarification to employers whose business size fluctuates year to year. 
• Employees hired after a benefit year begins. The NE DOL clarifies that employees need to accrue at least 1 hour of paid sick leave for every 30 hours worked (subject to the annual accrual max) up to the beginning of the next benefit year. Employers can also provide a lump sum of leave when the employee starts working mid-year.
• Existing Policies, PTO vs. Sick Leave, Accrual Limits, and Carryover. Plenty to unpack here! The updated FAQs clarify that if an employer’s existing paid leave policy—whether a combined PTO policy or a standalone paid sick leave policy—meets the requirements of the law, the employer is not required to allow additional accrual or carryover beyond what the policy already provides. This reflects a broader interpretation than prior FAQs, which focused only on PTO policies and did not address standalone sick leave. Employers should carefully evaluate which type of policy best fits their workforce, considering both the paid sick leave law and existing Nebraska wage laws. PTO policies, which are treated as wages, likely cannot include use-it-or-lose-it provisions, though maximum accrual caps are permitted. In contrast, standalone paid sick leave policies—which are not considered wages—may include both use-it-or-lose-it rules and accrual limits. However, if the policy is not already in place, all accrued paid sick leave must be carried over into the following year. It’s a bit of a maze—but one worth navigating carefully.
• Paychecks and tracking accrual. The other notice requirement in the law includes tracking paid leave on or in an attachment to an employee’s paycheck. Employers may satisfy this requirement by maintaining an online system that allows employees to access and view how many hours the employee worked, how much paid sick time the employee accrued, and how much paid sick time the employee was permitted to use.

Next Steps for Employers:
McGrath North is here to help. Our team advises clients daily on how to interpret, apply, and comply with the newly amended paid sick leave law. We can assist with:

• Drafting or revising paid sick leave policies to ensure compliance with the law, while designing a structure that aligns with your workforce and operational needs.
• Providing customized cover letters to accompany the model notice, explaining how your existing PTO or paid sick leave policy satisfies the law.
• Drafting company-tailored written notices to be distributed to current employees prior to the September 15 deadline and new employees hired on or after September 15.
• Reviewing and auditing employer-drafted notices and posters to ensure they meet the law’s requirements.
• Providing guidance and clarification on any questions relating to the newly updated FAQs.
• Advising on paycheck notice requirements, including how to properly reflect paid sick leave balances on pay stubs or through electronic systems.
• Being available to answer questions and provide support as you implement—or prepare to implement—the law’s requirements.

With the September 15 deadline quickly approaching, employers should act now to ensure they are prepared to meet all requirements under the NHFWA.