In November of 2024, Nebraska voters approved Ballot Initiative 436 known as the Nebraska Healthy Families and Workplace Act. The initiative was brought after several attempts failed in the Nebraska Legislature. The initiative process in Nebraska provides Nebraskans the ability to pass laws or constitutional amendments. The approved law mandates paid sick leave for most employees within the state and becomes effective on October 10, 2025. The law covers private employers of all sizes and some of its key provisions include:
- Eligible employees must work at least 80 hours within a calendar year to qualify.
- Employees will accrue one hour of paid sick leave for every 30 hours worked.
- Small businesses (fewer than 20 employees, including part-time employees) must provide up to 40 hours of paid sick leave annually.
- Large businesses (greater than 20 employees, including part-time employees) must provide up to 56 hours of paid sick leave annually.
- Unused accrued paid sick leave carries over to the next year or can be paid out by the employer at the end of the year.
- Employees may request paid sick leave verbally. Employers can require reasonable notice procedures.
- Employers can request documentation from the employee such as a note from a healthcare provider but if providing such documentation presents undue hardship, a written statement from the employee would be sufficient.
- Employers must provide notice to employees of employees rights under the law no later than September 15, 2025 or at the start of employment.
- There are penalties and fines for non-compliance as well as rights of employees to file complaints or file lawsuits.
LB 415 introduced by State Senator Beau Ballard of Lincoln (LD 26) would make changes to the law. LB 415 would:
- Employers that have a Paid Time Off (PTO) policy or existing paid sick leave for their employees that meets or exceeds the requirements of the law will not be required to provide additional paid sick leave or carry over more hours into the next year.
- Employees would begin accruing paid sick leave after 80 hours of consecutive work rather than immediately upon employment.
- Paid sick leave provided between Jan. 1 and Oct. 1 of 2025 would go towards an employer’s obligations under the law.
- Employers may require reasonable documentation for absences exceeding three consecutive work days and can establish written policies for how employees should request paid sick leave.
- If employer leaves employment and is re-hired within twelve months, any unused paid sick leave accrual can be used unless it was paid out by the employer to the employee upon separation.
Amendments to LB 415 currently include:
- Exempts private businesses with fewer than 10 employees from complying with the law.
- Exempts owners, independent contractors, temporary and seasonal agricultural workers, and employees under 16 years old from accruing paid sick time, or counting towards the number of employee.
- Provides a method for providing paid sick leave to employees who are paid by commission, mileage, or fee-for-service rather than hourly.
- Clarifies that an employer is not required to pay an employee for unused paid sick time upon the employee’s separation from employment.
The amendments were added to the bill and the bill was advanced to the second round of debate or Select File as it is called.
