Employers in Nebraska are preparing for new paid sick leave requirements following the recent amendment to the Nebraska Healthy Families and Workplaces Act. With the revised law set to take effect on October 1, 2025, businesses must ensure their policies align with updated accrual, usage, and notice obligations.
Understanding Nebraska’s Healthy Families and Workplaces Act
On June 5, 2025, Nebraska Governor Jim Pillen signed Legislative Bill No. 415 into law, amending the Nebraska Healthy Families and Workplaces Act (NHFWA). Originally passed by voters in November 2024, the law introduces mandatory earned paid sick time (PST) for most employees across the state. The updated legislation will take effect on October 1, 2025.
The NHFWA applies to the majority of private-sector employers operating in Nebraska. Publicsector employers including state and federal agencies as well as political subdivisions of the state, are exempt. Legislative Bill 415 further refines employer obligations, employee eligibility, and accrual terms, providing additionalclarity ahead of implementation.
Key NHFWA Provisions for Employees
Under the law, eligible employees will accrue one hour of paid sick time for every 30 hours worked. Employers with 20 or more employees must allow up to 56 hours of PST annually, while small employers with between 11 and 19 employees may cap annual accrual and usage at 40 hours annually.
Workers can carry over unused leave from one year to the next; however, the annual usage cap remains based on employer size. Employers with fewer than 11 employees are not required to provide paid sick leave under the amended legislation.
Employees will begin accruing PST once they have completed 80 hours of work in Nebraska. Once earned, leave may be used as it accrues, without a waiting period. Workers may use the time to care for their own health or that of a family member, or in response to a public health emergency that forces a workplace or school closure.
Importantly, employers that already offer paid time off through an existing policy are not required to provide additional leave if their policy is at least equivalent in terms of accrual, usage, and qualifying reasons. Any paid time off provided between January 1 and September 30, 2025 for reasons covered by the Act may be credited toward the 2025 requirements.
The amendment preserves other key provisions of the original law. Employers must pay PST at the employee's regular hourly rate and continue benefits, including health care and additional paid leave accrual. Leave must be made available in hourly increments or in the smallest increment the employer uses for other types of leave.
Employers may request documentation when sick leave is taken for more than three consecutive days and may impose penalties for policy violations, with fines ranging from USD 500 to USD 5,000.
Implications for Employers in Nebraska
By September 15, 2025, employers in Nebraska must provide written notice to employees about their rights under the Act. A poster must also be displayed at the workplace, and remote employees should receive an electronic notice.
As the effective date approaches, employers operating in Nebraska should review their current policies, update employee handbooks, and ensure compliance with notice and accrual rules.