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Nebraska’s New Sick Leave Law Explained
Saturday, June 7, 2025

On June 4, 2025, Nebraska Governor Jim Pillen signed LB415, which amends the Nebraska Healthy Workplaces and Families Act (“HWFA”). Initially passed via ballot initiative in November 2024, the HWFA mandates paid sick leave for most employers and employees in the state—40 hours per year for employers with between 11 and 19 employees, and 56 hours per year for employers with 20 or more employees. 

LB415 was an effort by the Nebraska Unicameral to provide some clarity to certain portions of the HWFA, though many issues relating to enforcement and compliance are still uncertain. Some of the key changes to the HWFA are outlined below.

Changes to the Scope of Coverage: As originally written, the HWFA excluded individuals who work in Nebraska for fewer than 80 hours in a calendar year, as well as employees who are subject to the federal Railroad Unemployment Insurance Act. As amended, the law will also exclude individual owner-operators, independent contractors, individuals who are employed in agricultural employment of a seasonal or other temporary nature, and individuals under 16 years of age.

Rather than accruing paid sick time from the commencement of employment, covered employees will begin accruing paid sick time after 80 hours of consecutive employment in Nebraska.

The amendments also slightly limit employer coverage under the HWFA. As amended, the definition of “employer” excludes employers with 10 or fewer employees.

Existing Policies: LB415 provides that employers with paid leave policies that meet or exceed the requirements of the HWFA (meaning the 40 hours per year for small employers and 56 hours per year for large employers) are not required to allow employees to carryover unused sick leave benefits beyond the limits of the employer’s current policy.

Most significantly, it also appears that employers with such existing leave policies already in place are relieved of other problematic provisions of the original HWFA (regarding notice, finding replacements, documentation, etc.).

Enforcement: The HWFA no longer includes a private cause of action. Instead, the Nebraska Department of Labor is responsible for enforcement of the law. The Nebraska Department of Labor still has the authority to issue administrative penalties for violations of the law, up to $500 for a first violation and up to $5,000 for any subsequent violation.

The Nebraska Department of Labor is in the process of updating its guidance on the HWFA.

Sick Pay Calculations: LB415 clarifies how employers should calculate paid sick time for certain workers with non-traditional compensation structures. Employees who are paid on a commission, piece-rate, milage, or fee-per-service basis should receive paid sick time based on an hourly rate using the average weekly rate calculation based on the state workers’ compensation statute.

Other Clarifications: LB415 also clarifies that employers are not required to pay out unused sick time upon separation from employment.

Under LB415, paid sick time provided to employees on or after January 1, 2025, and before October 1, 2025, is counted toward an employer’s paid sick time obligations for calendar year 2025.

Effective Date and Written Notice: LB415 will still take effect on October 1, 2025. Certain employers must provide written notice of the HWFA to employees by September 15, 2025, or at the commencement of employment, whichever is later.

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