Last year, we reported that 74% of voters in Nebraska voted in favor of Initiative 436, which would provide workers with paid sick leave (PSL), effective on October 1, 2025. On June 4, Gov. Jim Pillen signed LB 415, which amends the PSL law as follows:
Covered Employer: Employers with fewer than 11 workers are excluded from providing PSL to their employees. Previously, all employers were covered.
Eligible Employees: The definition of an “employee” does not include owner-operators, independent contractors, individuals working fewer than 80 hours in Nebraska per year, seasonal agricultural workers, those covered by the federal Railroad Unemployment Insurance Act, or individuals under 16 years old.
Accrual and Use: Employees in Nebraska now begin accruing PSL time only after completing 80 hours of consecutive employment, which is a new requirement introduced by LB 415. After that, they earn at least one hour of paid sick time for every 30 hours worked. Any PSL time provided to an employee on or after January 1, 2025, and before October 1, 2025, shall be counted toward an employer’s obligations under the PSL law for calendar year 2025. Employers are not required to pay an employee for unused PSL upon the employee’s separation from employment.
Employee Remedies: The provisions that previously allowed employees to sue for violations of the PSL law were deleted. Under LB 415, employees no longer have a private right of action and must rely on administrative enforcement through the NE Department of Labor (DOL) instead.
Additional Guidance: The NE DOL has released a FAQ document dated June 9th; among other topics, the document provides guidance on counting employees to determine business size. Employers should also monitor the NE DOL website for the template workplace poster and written notice of PSL rights, which they will need to provide to their employees by September 15, 2025 or at the time of hire, whichever is later.
FINEOS can help with your state leave programs
Using modern insurance technology solutions like the FINEOS Platform can help insurance carriers remain compliant and competitive when leave legislation is revised and new products are authorized by governing jurisdictions. Learn more about how a modern, integrated disability and absence management (IDAM) solution can help your organization adapt to this rapidly evolving market and remain in compliance.
