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Nebraska’s new Healthy Families & Workplaces Act (the “Act”) requires most employers to provide paid sick leave to Nebraska employees starting October 1, 2025. Key requirements and action items are summarized below.

Required Notices and Postings

• Written Notice: Employers must distribute the Department of Labor’s Notice of Employee Rights (or an equivalent document) to all employees by September 15, 2025, and thereafter to all any new employees on the date of hire.
• Poster: Employers must conspicuously display a Model Poster in each Nebraska worksite on or before October 1, 2025. If an employee has no physical workplace, the poster may be delivered by e-mail, posting on the intranet, or other electronic means.

Key Implementation Dates

• September 15, 2025: Employers must distribute Written Notice to all current employees.
• Date of Hire: Written Notice must be issued to any new employee upon hire if such hiring occurs on or after September 15, 2025.
• October 1, 2025: Mandatory paid sick time begins accruing and the workplace poster must be displayed (or, for remote staff, distributed electronically).

Employer Coverage and Exemptions

• Employers must provide for the accrual and use of paid sick time each year, with the required amount determined by the number of Nebraska employees:
  • 11–19 Nebraska employees: up to 40 hours per year.
  • 20 or more Nebraska employees: up to 56 hours per year.
• The Act does not apply to:
  • Individuals under 16 years of age;
  • Certain seasonal or temporary agricultural workers;
  • Independent contractors, owner-operators, and individuals who work fewer than 80 hours in Nebraska in any calendar year; and
  • Rail employees covered by the Railroad Unemployment Insurance Act.

Accrual Mechanics

• Accrual starts after an employee completes 80 hours of consecutive employment.
• Sick time accrues at 1 hour for every 30 hours worked.
• Employers may credit any paid sick leave provided on or after January 1, 2025, toward the 2025 accrual requirement.
• Employers may “front-load” the annual allotment in lieu of tracking hourly accruals.

Carryover and Caps

• Carry Over: Unused sick time must carry over from year to year; however, an employer may cap use at 40 or 56 hours (depending on size) during any single benefit year.
• Cash-Outs: Employers that cash out all unused hours at year-end and immediately re-credit the annual minimum on the first day of the new benefit year may avoid the carry-over obligation altogether.

Permitted Uses

Paid sick time may be taken for an employee’s or a family member’s illness, injury, preventive care, medical diagnosis, treatment, or related school/child-care meetings; business or school closures caused by a public health emergency; and self-isolation or caretaking prompted by exposure to a communicable disease. The definition of “family member” is broad and extends to individuals whose close association is the equivalent of a family relationship.

Recordkeeping and Pay-Stub Disclosures

For every regular pay period, employers must provide a written or electronic statement showing:

1. Paid-sick-time hours available;
2. Paid-sick-time hours used; and
3. Paid-sick-time compensation paid to date.

Employers must retain records sufficient to demonstrate compliance.

Interaction With Existing PTO Policies

• “All Purpose” Plans: A current PTO or “all-purpose” leave bank will satisfy the Act if it provides at least 40 or 56 hours of paid leave per year under terms that are equal to or more generous than the statutory minimums.
• Unlimited PTO Plans: Employers with unlimited PTO plans that encompass sick leave should seek counsel to ensure that their PTO plan is compliant with the law. Alternatives could include separating sick leave from PTO, modifying the PTO plan to an accrual method, or adding a sick leave addendum to the existing PTO plan, carving out sick leave.  Employers with unlimited PTO plans remain obligated to track sick leave taken and available and provide employees notice of their sick leave balance.
• Payout at Separation: The Act does not require payout of unused sick time unless it is part of a combined PTO or vacation policy that is otherwise payable under the Nebraska Wage Payment & Collection Act. Employers should review policy language now to ensure it clearly distinguishes non-payout sick time from vacation or PTO if that is the intended approach.

Anti-Retaliation Protections

Employers are prohibited from counting protected sick-leave absences toward discipline or otherwise retaliating against employees who request or use leave, file complaints, or participate in investigations under the Act.

Action Items for Employers

1. Audit headcount in Nebraska to confirm coverage tier (11–19 vs. 20+).
2. Review and revise existing sick-leave, PTO, vacation, attendance, and disciplinary policies to ensure compliance.
3. Design or update payroll systems to track accrual, carryover, usage, and pay-stub disclosures.
4. Plan for timely distribution of the required notice by September 15, 2025, and ensure remote employees receive it electronically.
5. Arrange for prominent placement (or electronic distribution) of the state’s poster by October 1, 2025.
6. Train managers and HR staff on permitted uses, documentation rules, and the Act’s anti-retaliation mandate.
7. Consult counsel regarding multi-state policy harmonization and potential collective bargaining implications.

Please contact your employment counsel with any questions or for assistance updating your policies and implementation plan.