Beginning October 1, 2025, employers will be required to provide paid sick leave under the Nebraska Healthy Families and Workplaces Act (HWFA). The law applies to private sector employers with 11 or more covered employees and establishes minimum standards for the accrual, use, and carryover of paid sick leave.
Accrual of Leave
Under the HFWA, covered employees must accrue paid sick leave at a rate of one (1) hour for every 30 hours worked, up to a maximum of 40 or 56 hours annually, based on employer size:
- Employers with 11 to 19 employees must provide up to 40 hours per year.
- Employers with 20 or more employees must provide up to 56 hours per year.
Covered and Excluded Employees
Accrual begins only after an employee has completed 80 consecutive hours of work in Nebraska. The following individuals are not covered under the Act:
- Employees under the age of 16
- Seasonal or temporary agricultural workers, as defined by the Act
- Independent contractors, owner-operators, and individuals working fewer than 80 hours in Nebraska in a calendar year
- Railroad employees covered under the Railroad Unemployment Insurance Act
Carryover
Employers must allow unused sick leave to carry over from year to year. However, use may be capped at the annual maximum of 40 or 56 hours, depending on employer size. Alternatively, employers may avoid the carryover requirement by paying out unused leave at year-end and immediately recrediting the minimum annual amount at the start of the new benefit year.
Payment at Separation
Employers are not required to pay out unused sick leave upon an employee’s separation.
Employers with existing paid leave policies that meet or exceed the HFWA’s requirements are not obligated to provide additional leave or permit carryover beyond what their current policy allows.
Notice and Posting Requirements
Covered employers must provide a written notice of the company’s sick leave policy to all existing employees by September 15, 2025, and to new hires upon hire. This notice must explain how the employer’s policy complies with the Act, including details on accrual, usage, and carryover.
In addition, employers must display a workplace poster in each establishment where employees work. For remote workers or employees who access work through a web-based platform, the poster must be provided electronically or made available within the platform. Posters must be displayed in English and any other language spoken as a first language by at least five percent of the workforce, if a translated version is available from the Nebraska Department of Labor (DOL).
The model employee notice and posters including Spanish translations, are available for download from the DOL’s website.
Next Steps for Employers
To prepare for the October 1, effective date, employers should review existing sick leave and paid time off policies to determine whether any updates are needed to meet the HFWA’s requirements. If a current policy already satisfies the law, minimal changes may be necessary.
Employers must provide written notice of the policy to current employees by September 15, 2025, and to new hires upon employment. Notices should clearly outline how the policy aligns with HFWA requirements.
Employers should also review payroll and HRIS systems to ensure they can accurately track eligibility based on the 80-hour threshold and monitor leave accruals, usage, and balances. Reviewing DOL-issued resources, including the model notice and poster, is also recommended to support compliance efforts.
