Legislative Update: Changes to Nebraska’s Paid Sick Time Law Heads to Governor’s Desk for Approval

In November 2024, Nebraska voters approved Ballot Initiative 436 or the Nebraska Healthy Families and Workplace Act (“HFWA”).  On May 28, 2025, the Nebraska legislature passed Legislative Bill 415 (“LB 415”) to change certain provisions and eligibility regarding Nebraska’s new paid sick time law, which is still slated to go into effect later this year starting October 1, 2025.  LB 415 will soon head to Governor Pillen’s desk for consideration.

Scope of Coverage

The HFWA initially included broad language to identify which Nebraska employees would be entitled to paid sick time.  An “employee” was defined as “any individual employed by an employer” in Nebraska, with the sole exemptions being railroad employees or employees working in Nebraska for fewer than 80 hours in a calendar year.

LB 415 adds to those exemptions and expressly exempts individual owner-operators, independent contractors, seasonal or temporary agricultural employees, and any individual under age sixteen (16)—meaning any such workers would not be entitled to paid sick time under the HFWA.  In addition, LB 415 clarifies that the definition of “employ” under the HFWA will mean “to permit to work by an employer pursuant to an employment relationship”[1] to presumably clarify that owner-operators or independent contractors are not intended to be covered under the HFWA. 

One of the biggest changes in LB 415 comes from the legislature’s decision to narrow the definition of covered “employers” under the HFWA to only include persons or entities who employ eleven (11) or more employees.  This, in effect, would mean that small businesses with fewer than eleven (11) employees will not be required to provide paid sick time.

Sick Time Entitlements

The HFWA still provides covered Nebraska employees the right to accrue, at a minimum, 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” (employing 11 to 19 employees), employees will be entitled to accrue up to forty (40) hours of paid sick time a year beginning on October 1, 2025.
• For all other employers (employing 20 employees or more), employees will be entitled to accrue up to fifty-six (56) hours of paid sick time a year beginning on October 1, 2025.

LB 415 adds a provision to clarify that employees shall “begin accruing paid sick time after eighty hours of consecutive employment.”  Employees are permitted to use paid sick time as it is accrued; however, employees are not entitled to payout of any unused paid sick time upon employment separation.  LB 415 also states any paid sick time already provided to an employee during the period of January 1, 2025 to October 1, 2025 may be counted towards an employer’s obligations under the HFWA for the 2025 calendar year.

Existing Paid Leave Policies

One big question involving HFWA compliance has been how employers might address new HFWA obligations if they already have existing paid leave policies (like Paid Time Off).  LB 415 clarifies that an employer is not obligated to provide additional paid sick time or to follow accrual or carryover requirements under HFWA if:

• The employer makes available the amount of paid leave that equals or exceeds requirements under HFWA (at least 40 or 56 hours of paid sick time, depending on the employer’s size); and
• The employer makes available paid leave to be used as paid sick time as required under the HFWA.

Nebraska Department of Labor Guidance

In April 2025, the Nebraska Department of Labor (“NDOL”) issued a Frequently Asked Questions (FAQs) document with general guidance on employer paid sick time obligations.  We anticipate the NDOL will provide updated guidance, should LB 415 be signed into law by Governor Pillen as anticipated.  The NDOL will also provide model notices and posters in the coming months.  Employers should expect to give written notice of the HFWA to all employees prior to September 15, 2025.

In the meantime, employers should expect to create or revise employment policies to comply with the HFWA’s paid sick time requirements leading up to the October 1, 2025 effective date.