We want to make you aware of a new Nebraska law impacting businesses with employees, effective October 1, 2025. The new Paid Sick Time requirements will affect many Nebraska employers, and it is critical to understand your obligations to remain compliant.
Key Requirements to Know
- Applicability:
- The law applies to businesses with 11 or more employees.
- Notice & Posting Requirements:
- Deadline: By September 15, 2025, employers must provide written notice to employees and display required workplace posters.
- Resources: The Nebraska Department of Labor offers free model notices and posters, available free (click links).
- Accrual of Paid Sick Time (Effective October 1, 2025):
- Employees begin accruing paid sick time after working 80 hours.
- Accrual rate is 1 hour of paid sick time per 30 hours worked.
- Annual Sick Time Cap (Based on Business Size):
- Small Employers (11–19 employees): Must allow employees to accrue up to 40 hours per year.
- Larger Employers (20+ employees): Must allow up to 56 hours per year.
- Employers may offer more generous policies if they choose.
- Allowable Use of Paid Sick Time:
Employees may use accrued sick time:
- For their own mental or physical illness or preventative care
- To care for a family member or person with a close, family-like relationship
- When a school or childcare facility closes due to a public health emergency
- Employees are protected from retaliation when using their leave appropriately.
What You Should Do Now
We recommend the following steps:
- Review your current sick leave policies to ensure compliance.
- Track employee headcount to determine the applicable cap (40 vs. 56 hours).
- Download and prepare to distribute/post the model notices if you have not done so already.
- Update your payroll and time-tracking systems to calculate sick time accrual appropriately.
Please note: if your company already offers a more generous PTO policy than the one outlined, no changes are required to remain in compliance.