Nebraska’s New Paid Sick Leave Law: What Employers Need to Know Before October 1

On October 1, 2025, Nebraska’s new paid sick leave law—the Nebraska Healthy Families and Workplaces Act—will take effect. Passed by voters as Initiative 436 in November 2024 and clarified by LB 415, this law introduces new obligations for many employers across the state.

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As businesses prepare to comply, here’s what you need to know.

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Who’s Impacted?

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If your business has 11 or more employees, the new law applies to you. This includes full-time and part-time team members, hourly and salaried alike. Even businesses that already offer leave benefits should take note—the new law includes specific accrual rules and exceptions that may require policy updates.

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What Does the Law Require?

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At its core, the Act requires employers to provide paid sick leave to eligible employees. Here are some of the key provisions:

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• Accrual Rate: 1 hour of paid sick leave for every 30 hours worked
• Eligibility Begins: After 80 hours of consecutive employment
• Carryover: Unused time may carry over year to year, though caps apply
• Max Leave: 56 hours per year (40 hours for small businesses under 20 employees)

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Notably, this law ensures part-time workers are also covered—an important shift from traditional benefits models.

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What About Existing Leave Policies?

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If your business already offers paid sick leave or Paid Time Off (PTO), you may be in luck—so long as your current policy meets or exceeds the new law’s requirements. Employers who provided qualifying leave between January 1 and October 1, 2025, can also apply that time toward their legal obligations.

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Do You Have to Pay Out Unused Time?

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No. Unlike vacation policies in some states, Nebraska’s new law does not require payout of unused sick time upon an employee’s departure.

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Exceptions to Know

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• Small Businesses (fewer than 20 employees): Only required to provide up to 40 hours of paid sick leave annually
• Out-of-State Workers: Employees who don’t work at least 80 hours in Nebraska in a calendar year are not entitled to leave under this law

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What Employers Should Do Now

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📘 Review your employee handbook and PTO policy
🔍Compare your current benefits against the new law
🗂 Update or adjust accrual tracking systems
👥Train HR staff and management teams on compliance

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The October 1 deadline is fast approaching—and now is the time to prepare. Proactive planning will help protect your business, ensure compliance, and show your team that you take their wellbeing seriously.

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If you have questions about how this law applies to your business—or if your current leave policy needs a second look—our team at Lamson Dugan & Murray is here to help.

📩 Click here to contact the LDM team.