The Nebraska Healthy Families and Workplaces Act (HFWA) takes effect on October 1, 2025. A key component of the act is Initiative 436, which requires employers to provide paid sick time based on the number of employees:
- The HFWA does not apply to businesses with less than 11 employees.
- Businesses with 11-19 employees, including full-time, part-time or temporary employees, must provide 40 hours per year of paid sick leave.
- Businesses with 20 or more employees must provide 56 hours per year of paid sick leave.
- These are minimum requirements and an employer may choose to provide additional paid sick leave.
If a business already has a current PTO policy or sick leave policy in place, and it meets the minimum requirements of the act, they are not required to offer additional sick leave time. Employers are encouraged to discuss their current policy with a legal advisor if they have any questions or concerns. The FAQs available on the DOL website provide additional guidance on this act.
When determining business size:
- The DOL includes employees who worked at least 80 hours in the state of Nebraska in a calendar year.
- Scenario: An employer that normally has 8 employees on payroll, has 4 turnovers and 4 new hires in a calendar year, so therefore issues 12 W2s. This employer would not be subject to this act because the employer never had 11 or more concurrent employees.
Nebraska Employer Action:
- Written notice is required to be provided to all current employees by September 15, 2025, and to all new employees going forward. The DOL has provided a model notice you can use to satisfy this requirement, or you may produce your own written notice.
- The NE DOL poster must be displayed if there is a physical worksite. If there is no physical workplace, electronic communications can satisfy this requirement.
- If 5% or more of the employees do not speak English as a first language, and the DOL has translated versions available, the employer must provide the notice and poster in that language as well. The DOL currently has provided a notice and poster in Spanish.
Each pay period, whether on the physical paystub, as an attachment, or via an online platform, the amount of paid sick time available, amount of paid sick time taken, and amount of pay the employee has received as paid sick time must be provided to each employee.
As a reminder, although the act doesn’t take effect until October 1, 2025, written notice to employees regarding this act must be provided to employees by September 15, 2025. We anticipate additional guidance will come from the NE DOL as this act takes effect. We will do our best to provide timely updates. If you have any questions, please don’t hesitate to reach out.