Nebraska voters approved Ballot Initiative 436, requiring covered private employers with one or more employees to provide paid sick leave (PSL) to eligible employees for personal or family health needs and public health emergencies. Leave accrual for existing employees begins on October 1, 2025, and at hire for employees hired after this date.
Coverage
Covered employees are individuals who work 80 hours or more in a calendar year, except those covered by the federal Railroad Unemployment Insurance Act.
Covered family members under the law include a broad range of relations, including but not limited to biological, adopted, foster, or in loco parentis relationships, as well as grandparents, grandchildren, or other relatives by blood or whose close association is equivalent to a family relationship.
Amount of Leave
Employees will accrue PSL at a rate of one (1) hour for every 30 hours worked, up to a maximum of 40 or 56 hours annually, depending on employer size:
- Employers with 20 or More Employees: Must provide 56 hours of paid sick leave per year.
- Employers with Fewer Than 20 Employees: Must provide 40 hours of paid sick leave per year.
For coverage purposes, all employees, including full-time, part-time, and temporary workers, are counted. However, it remains unclear if only those working in Nebraska are included.
Employers may define the “year” as any regular, consecutive 12-month period.
Carryover Requirements
Employers must allow employees to carry over unused leave from one year to the next. However, employers may cap annual usage to the maximum accrual (40 or 56 hours). Employers who frontload time may opt to pay out unused leave at the year’s end instead of allowing carryover.
Employer Notice Requirements
Employers must provide written notice of paid sick leave rights to employees by September 15, 2025, and at hire. The notice must include information on accrual rates, protections against retaliation, and instructions for reporting violations. Employers are also required to display a state-developed notice containing this information.
Recordkeeping Requirements
Employers must document the following in each employee’s paycheck or an attachment:
- The amount of paid sick time available to the employee.
- The amount of paid sick time used by the employee to date in the year.
- The total pay received as paid sick time.
Combination with Paid Time Off Policies
Employers with existing paid time off (PTO) policies that meet or exceed the accrual requirements of Initiative 436 and allow for the specified uses under the law are not required to provide additional leave.
Payment at Separation and Rehire Provisions
Employers are not required to pay out unused accrued leave upon separation. However, employees rehired within 12 months are entitled to have their previously accrued but unused leave restored.
Next Steps
Although regulations are forthcoming, employers should familiarize themselves with the full provisions of Initiative 436 to ensure compliance.
- Develop or Update Policies: Create or revise policies to clearly outline accrual rates, eligible uses, carryover provisions, and any documentation requirements.
- Update Payroll Systems: Adjust systems to accurately track accrual and usage of paid sick leave.
- Enhance Recordkeeping: Implement systems to maintain accurate records of employees’ sick leave balances and usage.
- Provide Training: Train HR personnel and managers on the new requirements to ensure consistent communication and application of the law.
- Monitor Regulations: Stay informed about additional guidance or rules issued by the state to ensure full compliance.
HR Works will continue to monitor this topic and share updates as they become available.
