Nebraska’s newly passed Healthy Families and Workplaces Act (“Act”) is a significant ballot measure requiring employers in Nebraska to provide paid sick time for an employee’s personal or family health needs. While the Act does not go into effect until October 1, 2025, we’ve highlighted the key provisions that employers need to prepare for to comply with the Act.
Key Definitions
The Act defines several important terms, including:
- Employee: Any individual employed by an employer, excluding those working fewer than eighty hours in a calendar year in Nebraska or those covered by the federal Railroad Unemployment Insurance Act. (Note that the initiative does not specify that those hours be worked for the employer from which or whom sick time is claimed.)
- Employer: Any entity employing one or more employees, excluding the United States, the State of Nebraska, and its political subdivisions.
- Family Member:
Any of the following, regardless of age: A biological, adopted, or foster child, a stepchild, a legal ward, or a child to whom the employee stands in loco parentis;
A biological, foster, step, or adoptive parent or a legal guardian of an employee or an employee's spouse;
A person who stood in loco parentis to the employee or the employee's spouse when the employee or employee's spouse was a minor child;
A person to whom the employee is legally married under the laws of any state;
A grandparent, grandchild, or sibling, whether of a biological, foster, adoptive, or step relationship, of the employee or the employee's spouse; or
Any other individual related by blood to the employee or whose close association with the employee is the equivalent of a family relationship.
- Paid Sick Time: Time compensated at the same hourly rate and with the same benefits as the employee typically earns during hours worked.
- Small Business: An employer with fewer than 20 employees (whether full-time, part-time, or temporary) on its payroll in each of twenty or more calendar weeks in the current or preceding calendar year.
Accrual of Paid Sick time
Paid sick time begins to accrue at the commencement of employment or October 1, 2025, whichever is later, and can be used as it is accrued. Employees accrue a minimum of one hour of paid sick time for every thirty hours worked. For exempt employees, accrual is based on a presumed forty-hour workweek unless their typical workweek is less.
The Act sets annual caps on paid sick time:
- Small Businesses (19 or fewer employees): 40 hours
- All other Employers (20 or more employees): 56 hours
Accrued but unused paid sick time must be carried over to the next year. Alternatively, employers may provide a lump sum at the beginning of year and pay out any remaining leave at the end of each year.
Purposes for Paid Sick Time
Paid sick time can be used for:
- The employee's own mental or physical illness, injury, or health condition (or their need for medical diagnosis, care, or treatment of the same) and for preventative medical care.
- Care for a family member includes the same opportunities as permitted for the employee and adds expanded coverage related to children, allowing the employee to attend meetings necessitated by the child’s health at a school or place where the child is receiving care.
- Closure of the employee's place of business or a child's school due to a public health emergency.
- Self-isolation or care for a family member due to exposure to a communicable disease.
Employee Use of Paid Sick Time
Paid sick time must be provided upon an oral request. Employers may require reasonable documentation for absences exceeding three consecutive workdays. Note that reasonable documentation does not necessarily mean that the employer can require a doctor’s note under the language of the initiative – the documentation that can be required will vary depending on circumstances. Employers who require notice of the need to use sick leave must provide the employee with a written policy containing the procedures to provide notice. The employer cannot require the employee to find replacement coverage as a condition of taking the leave.
Employers are prohibited from requiring disclosure of detailed health information as a condition for providing paid sick time. Any health information obtained must be treated as confidential and maintained separately from other personnel records.
Employee Rights and Employer Obligations
The Act protects employees from retaliatory actions for exercising their rights. Employers must provide written notice to employees about their rights and the terms of paid sick time. This information must be displayed in conspicuous places and provided in English and other languages spoken by at least five percent of their workforce if a poster approved by the Department of Labor is available.
Enforcement and Penalties
The Department of Labor is responsible for enforcing the Act. Among other penalties stated in the Act, employers found in violation face citations and administrative penalties, ranging from up to $500 for a first violation and $5,000 for a second or subsequent violation. Employers have only 15 days to challenge the citation. Employees have the right to file suits for violations and seek legal and equitable relief, including reasonable attorney's fees.
Key Takeaways
- Adopt or Adjust Policies and Procedures. Employers should carefully draft or revise existing leave policies to ensure compliance with all terms of the Act. This includes ensuring employees earn leave at the required rate (i.e., 1 hour of leave for every 30 hours worked), that sick leave is available to all employees who work more than 80 hours per year in Nebraska (including seasonal, temporary, or part-time employees that are commonly excluded from paid time off policies), and that leave is available for all qualifying reasons. To the extent that an employer wants to rely on a pre-existing PTO policy to meet the requirements of the Act, it will need to ensure the terms and conditions under which the PTO leave can be taken is at least as generous as what is permitted by the Act. As such, employers may need to adjust their notifications to employees, documentation requirements, leave request procedures, and recordkeeping practices.
- Seek Legal Guidance. As with any new legal requirement, proper implementation of compliant policies and procedures is crucial. Legal guidance can help create a solid foundation for implementing the new requirements or reviewing existing policies for necessary adjustments.
If you would like help in evaluating your company’s options, have any questions about compliance, or need assistance navigating these changes, please contact our Labor & Employment Law Practice Group. We encourage you to subscribe to our Labor & Employment E-Briefs to get the latest HR news, tips, and updates.