Initiative 436 – Nebraska Voters Approve Paid Sick Leave

On November 5, 2024, Nebraska voters approved, by an overwhelming majority, Ballot Initiative 436 or the Nebraska Healthy Families and Workplace Act (“HFWA”) mandating paid sick time in Nebraska for eligible employees to earn and use for personal or family needs. 

Who is covered?

The HFWA applies to private employers regardless of size—whether that employer is an individual, a partnership, limited liability company, or organized group of persons.  Most Nebraska employees will be eligible for paid sick time; however, the HFWA does not cover railroad employees and public employees, such as those working for the federal or state government or its agencies, departments, or political subdivisions.

What is required?

Beginning on October 1, 2025, all Nebraska employees should accrue a minimum of one hour of paid sick time for every thirty (30) hours worked, up to an established threshold.  This threshold limit depends on the number of full-time, part-time, or temporary employees that a business employs during a given week:

• For a small business (fewer than 20 employees), employees will be entitled to up to forty (40) hours of paid sick time a year.
• For all other employers (20 employees or more), employees will be entitled to up to fifty-six (56) hours of paid sick time a year.

Paid sick time accrual will begin on October 1, 2025 or immediately upon commencement of employment, whichever is later.  Employees may carryover unused, accrued paid sick time from one year to the next.  However, an employer is not required to permit an employee to use more than the maximum yearly accrual (either 40 or 56 hours, depending on employee counts) per year.  In lieu of carryover, employers may choose to pay out unused paid sick time at the end of a year and provide the employee with the amount of sick leave (40 or 56 hours) made immediately available for the employee’s use beginning in the subsequent year.

As a reminder, the HFWA sets forward baseline requirements.  The Act does not preclude an employer from providing more generous accrual rates or practices at the employer’s discretion.  For instance, employers may already provide for paid time off (PTO) or paid sick leave.  The HFWA expressly states that employers are not required to provide additional paid sick time under the act if the employer:

• Has an existing paid leave policy (like PTO),
• Makes available the amount of paid leave required under the HFWA, and
• Ensures that paid leave may be used for the same purposes and under the same conditions as set forth in the HFWA.

How can paid sick time be used?

Paid sick time is available for an employee to use for a mental or physical illness, injury, or health condition; medical diagnosis, care, or treatment; and preventative medical care—for both the employee or the employee’s family member.  The term “family member” is defined broadly and includes the employee’s child, parent or legal guardian, spouse, grandparent, grandchild, sibling, or “any other individual related by blood to the employee or whose close association with the employee is the equivalent of a family relationship.”

Mirroring several neighboring states, the HFWA also makes paid sick time available in times of a public health emergency when the employee’s place of business or their child’s school or care facility is closed.  Paid sick time is also available if the employee or a family member needs to self-isolate due to exposure to a communicable disease.

Employees may request paid sick time by verbal request.  An employer may require documentation that paid sick time is used for purposes covered by the HFWA when an employee uses paid sick time for more than three (3) consecutive work days.  Further, employers will be required to record the amount of available paid sick time, amount of paid sick time taken by the employee to date, and the amount of pay the employee received as paid sick time on or attached to the employee’s regular pay statement.

What comes next?

The Nebraska Department of Labor (“NDOL”) is expected to issue detailed guidance and required notices regarding the HFWA in the coming months.  Employers should expect to give written notice of the HFWA to all employees prior to September 15, 2025.  The NDOL will make available a model notice and poster.

As more information becomes available, employers should expect to create or change employment policies to comply with the HFWA’s paid sick time requirements.