August 27, 2025
The Nebraska DOL has updated its posted resources under the Nebraska Healthy Families and Workplaces Act (NHFWA), including revised links to the required notice (due September 15) and the agency’s FAQs. While the most recent FAQ changes were minor, the NE DOL has also been engaging with businesses and offering additional clarification on how it interprets the statute.
For example, one issue that was not addressed in the statute or NE DOL guidance is whether “existing” standalone paid sick leave policies may include use-it-or-lose-it provisions and accrual limits. The NE DOL has now confirmed that standalone paid sick leave policies must either carry over unused sick time into the next year or pay it out at year-end at the employer’s option. Employers need only allow employees to use up to 40 or 56 hours annually (depending on employer size), and there is no requirement to pay out unused standalone sick leave upon separation. In contrast, combined PTO policies may include accrual and carryover caps so long as the minimum entitlement is preserved, but accrued PTO is treated as wages and must be paid out at termination under Nebraska law. Our team at McGrath North can help you weigh the pros and cons of implementing a PTO policy versus a standalone sick leave policy under Nebraska law, as well as draft compliant policies.
Remember that the Nebraska DOL is the enforcement arm of the NHFWA, and how it interprets the statute carries significant weight. We will continue to monitor all updates from the NE DOL and provide guidance on developments under the NHFWA.
Nebraska Paid Sick Leave: NE DOL Updates and Clarifications
By: Britni SummersThe Nebraska DOL has updated its posted resources under the Nebraska Healthy Families and Workplaces Act (NHFWA), including revised links to the required notice (due September 15) and the agency’s FAQs. While the most recent FAQ changes were minor, the NE DOL has also been engaging with businesses and offering additional clarification on how it interprets the statute.
For example, one issue that was not addressed in the statute or NE DOL guidance is whether “existing” standalone paid sick leave policies may include use-it-or-lose-it provisions and accrual limits. The NE DOL has now confirmed that standalone paid sick leave policies must either carry over unused sick time into the next year or pay it out at year-end at the employer’s option. Employers need only allow employees to use up to 40 or 56 hours annually (depending on employer size), and there is no requirement to pay out unused standalone sick leave upon separation. In contrast, combined PTO policies may include accrual and carryover caps so long as the minimum entitlement is preserved, but accrued PTO is treated as wages and must be paid out at termination under Nebraska law. Our team at McGrath North can help you weigh the pros and cons of implementing a PTO policy versus a standalone sick leave policy under Nebraska law, as well as draft compliant policies.
Remember that the Nebraska DOL is the enforcement arm of the NHFWA, and how it interprets the statute carries significant weight. We will continue to monitor all updates from the NE DOL and provide guidance on developments under the NHFWA.
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