Nebraska Enacts Bill to Amend Healthy Families and Workplaces Act

On June 5, Nebraska Gov. Jim Pillen signed Legislative Bill No. 415, which clarifies and amends the Nebraska Healthy Families and Workplaces Act (NHFWA). That act was passed by voters in November 2024 and provides earned paid sick time (PST) to most Nebraska employees. The bill will take effect in time for the Oct. 1 start date of the state’s PST requirement under the NHFWA.

On Nov. 5, 2024, Nebraska voters overwhelmingly approved Nebraska Initiative 436 (also known as the NHFWA), which requires employers to begin providing earned PST to most Nebraska employees on Oct. 1. On May 28, the Nebraska Legislature passed Nebraska LB No. 415, which clarifies and amends the NHFWA.

The Amended Nebraska Healthy Families and Workplaces Act

Under the NHFWA, most Nebraska employers must provide earned PST to employees starting Oct. 1. The law exempts employers that are federal or state governments or political subdivisions of the state.

Under the NHFWA, employees earn one hour of paid sick time for every 30 hours worked. Employers with 20 or more employees can cap accrual and use of PST at 56 hours per year. Small employers (defined by the amendment as employers with 11 to 19 employees) can cap accrual and use at 40 hours each year. Employees can carry over all unused PST at the end of the year, but carryover does not affect the annual accrual and use caps that are based on employer size.

LB No. 415 clarifies and amends the NHFWA as follows:

• Exempt Employees. Seasonal and temporary workers employed in agriculture and employees under age 16 are not eligible to earn PST.
• Small Employers Exempt. Small employers with fewer than 11 employees do not have to provide PST.
• Waiting Period for Accrual. Employees begin earning PST after working 80 consecutive hours in Nebraska, but employees can use PST as it accrues.
• Existing Paid-Time-Off Policy. Employers are not required to provide additional paid time off under the law if they have a paid-leave policy that permits employees to take paid leave in an amount that equals or exceeds what is required by the NHFWA and that paid leave can be used as paid sick time. Employers are not required to allow accrual or carryover beyond their existing paid-time-off policies.
• Paid Leave Provided Between Jan. 1 and Sept. 30. Paid time off provided by an employer on or after Jan. 1 that can be used for the reasons covered by the law will be counted toward the employer’s annual obligations to provide PST in 2025.
• Payout of Unused PST. The law does not require employers to pay out unused PST at the time of separation.
• No Private Right of Action. Employees do not have a private right of action under the law.

The amendment did not change most of the other key provisions of the NHFWA, including:

• Carryover. Employees may carry over all unused PST, but carryover does not affect applicable accrual and use caps based on employer size. An employer may avoid carryover by paying out all unused PST at year-end and front-loading the employee’s annual allotment of PST at the beginning of the subsequent year.
• Rate of Pay. Employers must pay PST at the employee’s normal hourly rate and with the same benefits, including health care benefits and accrual of paid time off (including accrual of PST).
• Reasons for Use. Employees may use PST for 1) their own or a family member’s mental or physical illness, injury, or health condition or 2) closure of the employee’s place of business or child’s school due to a public health emergency.
• Notice of Use. An employer requiring notice of use of PST must have a written policy outlining a reasonable procedure for providing notice.
• Increments of Use. Employees may use PST in one-hour increments or the smallest increment of time used to account for other types of absences, whichever is smaller.
• Documentation. Employers can request documentation to support PST use when an employee uses PST for more than three consecutive days.
• Administrative Penalties. Employers that violate the NHFWA can be subject to administrative penalties of up to $500 for a first violation and up to $5,000 in the case of a second or subsequent violation. An employer with an unpaid citation is not eligible to contract with the state until the citation is paid.

Employers must provide written notice of the NHFWA by Sept. 15 and display a poster at the employer’s worksite thereafter. Employers can provide electronic notice to their remote workers or if the employer does not maintain a physical worksite. Current employees who have worked at least 80 hours in Nebraska will begin earning PST on Oct. 1. All other Nebraska employees will start earning PST once they have worked at least 80 hours in the state. The Nebraska Department of Labor issued guidance in the form of frequently asked questions (FAQs).

Key Takeaways

Starting Oct. 1, most Nebraska employers must allow employees who have worked at least 80 hours to start earning PST at a rate of one hour for every 30 hours worked. Employers with fewer than 11 employees are exempt from the law. Employers with 11 to 19 employees can cap accrual and use at 40 hours per year. Employers with 20 or more employees can cap accrual and use at 56 hours per year.  

Employers with an existing paid-leave policy do not need to provide additional paid leave under the NHFWA if the policy provides an amount of leave equal to or greater than that required by the law and if that leave can be used as paid sick time. Employers can count paid leave that was provided to employees between Jan. 1 and Sept. 30 toward their annual obligation for PST if the paid time off was available for use as paid sick time as provided by the NHFWA.

Melissa M. Pesce is an attorney with Ogletree Deakins in St. Louis. © 2025 Ogletree Deakins. All rights reserved. Reposted with permission.