As we explained in a prior E-Brief, Nebraska voters passed a paid sick leave initiative in November 2024 by a wide margin (more than 70%). On Wednesday, May 28, 2025, the Unicameral passed LB 415 which, among other things, significantly changed the governing language of the paid sick leave requirements which are to go into effect on October 1, 2025. The bill is now going to the Governor’s desk for signature where it is expected to be signed.
Many of the changes provide much-needed clarity regarding the practical implementation of paid sick leave obligations by employers. Other provisions are more substantive, limiting the eligibility of certain employees and excluding certain small employers from the obligations. Some of the key amendments include the following:
- The definition of “employ” is amended to clarify that the worker at issue must be permitted to work by virtue of an employment relationship (as opposed to working as an independent contractor or other status).
- In the text of the initiative, individuals working in Nebraska fewer than 80 hours in a calendar year as well as individuals subject to the federal Railroad Unemployment Insurance Act were excluded from the category of employees eligible to receive paid sick leave. In the amendment, the category of excluded employees is expanded to also exclude the following sub-sets of workers from eligibility from paid sick leave:
- Individual owner-operators;
- Independent contractors;
- Individuals employed in “agricultural employment of a seasonal or other temporary nature” (note that this will not exclude year-round ag workers); and
- Individuals under 16 years of age.
- Employers with 10 or fewer employees are excluded from having to provide any level of paid sick leave.
- Employees will not begin to accrue paid sick time until “after eighty hours of consecutive employment.” This is a significant clarification that was needed to address workers who may not have been expected to work 80 hours in Nebraska over the course of a calendar year, but later did so. Moreover, employers were very limited in their ability to verify a new employee’s claim that they had previously worked 80 hours in Nebraska that calendar year and, therefore, were eligible for the accrual of paid sick leave. This change makes it much clearer as to when an employer is required to begin accruing paid sick leave for an employee.
- LB 415 confirms that paid sick time provided after January 1, 2025, and before October 1, 2025, will be counted towards fulfilling an employer’s obligation to provide paid sick time.
- Employers with paid leave policies that meet or exceed the requirements of the Nebraska Healthy Families and Workplaces Act are not required to allow an employee to accrue or carryover benefits beyond the employer’s existing paid leave policy.
- The amendment clarifies that employers are not required to pay an employee for unused sick leave upon separation from employment.
- The private right of action has been removed (i.e., an employee alleged to have been harmed by a failure to comply with the statute cannot sue in court on his or her own initiative). Citations can only be issued by the Nebraska Commissioner of Labor.
- The four-year statute of limitations has been removed; however, no new time limit is specified in LB 415. This could create potential questions in the future relating to the Commissioner’s length of time to bring a citation against an employer.
- Finally, additional guidance is provided on specific topics:
- How to calculate the amount of paid sick leave owed to employees who are exempted from overtime requirements because they are regulated by the Secretary of Transportation (e.g., motor carrier employees involved in interstate commerce); and
- How to quantify the amount of paid sick leave owed to workers paid on a commission, piece-rate, mileage, or fee-for-service basis.
Overall, the key takeaways from the passage of LB 415 (assuming it is signed by Governor Pillen as it is expected to be), remain the same as stated in our prior E-Brief:
- Review your employment policies and practices to ensure compliance with the new paid sick leave requirements; and
- Seek legal guidance if needed to ensure proper implementation of the new law.
With the amendment’s language now known, employers should begin this process in earnest to ensure that they are ready when the law goes into effect on October 1, 2025.
If you have questions, please contact our Labor & Employment Law Practice Group. We encourage you to subscribe to our Labor & Employment E-Briefs to get the latest HR news, tips, and updates.
Please join us for our next Wednesdays with Woods Aitken program, “Update on Paid Sick Leave and Medical Marijuana Ballot Initiatives – What Employers Need to Know,” on June 25. Learn more and register at Wednesdays with Woods Aitken.