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October 24, 2025
In the November 2024 election, Nebraska voters passed Initiative 436 – the Nebraska Healthy Families and Workplace Act (“Act”) – which took effect on October 1, 2025, with some modifications.
Under the Act, as modified, Nebraska private employers of 11 or more employees must provide paid sick leave to employees.
Several exceptions to the definition of employee exist. Specifically, employers are not required to provide paid sick leave to (1) individual owner-operators; (2) independent contractors; (3) employees who work less than 80 hours in Nebraska during a calendar year; (4) individuals “employed in agricultural employment of a seasonal or other temporary nature”; (5) employees covered by the federal Railroad Unemployment Insurance Act; or (6) individuals under the age of 16.
Eligible employees will accrue one hour of paid sick leave for every 30 hours worked, after an employee has reached 80 hours of consecutive employment. Employers with 11 to 19 employees must provide up to 40 hours of paid sick leave each year; larger employers must provide up to 56 hours. Any paid sick leave offered to employees between January 1 and October 1, 2025, will be counted toward the employer’s requirements for 2025.
Employers must pay sick leave at the same hourly rate that the employee typically earns. Employees who are paid on a commission, mileage, piece-rate, or fee-for-service basis should be compensated at an average weekly rate (under Neb. Rev. Stat. 48-126) reduced to an hourly rate based on a 40-hour workweek.
Employees can use their paid sick leave for various reasons, including, but not limited to, their own or a family member’s health condition and situations arising from public health emergencies, like school closures.
Employees are entitled to notices of their rights under the Act.
Employers are not required to pay out unused sick leave upon an employee’s departure.
Nebraska Employer Takeaways: Ensure that your leave of absence policies are updated, that any Human Resources or payroll systems are revised to track leave accrual and use properly, and that your Human Resources personnel and managers are trained on the Act. For compliance assistance, see the Nebraska Department of Labor’s FAQs.
Nebraska amended its Fair Employment Practice Act, effective October 1, 2025, to prohibit discrimination on the basis of military or veteran status. See 2025 NE L.B. 150.
Nebraska Employer Takeaways: Update your equal employment policies to identify military or veteran status as a protected class.
The author of this article, Patricia Tsipras, is a member of the Bar of Pennsylvania. This article is designed to provide one perspective regarding recent legal developments, and is not intended to serve as legal advice in Pennsylvania, Nebraska, or any other jurisdiction, nor does it establish an attorney-client relationship with any reader of the article where one does not exist. Always consult an attorney with specific legal issues.
