What happened?

On November 5, 2024, Nebraska voters approved Initiative 436, which mandates that Nebraska employers provide paid sick leave to their employees.

Quick Summary:

• The initiative outlines accrual rates, usage conditions, and protections against retaliation for employees.

• It has a different accrual rate for employers with 20 or more employees or 19 or fewer employees.

What are the details?

• Accrual of Paid Sick Time: Employees earn one hour of paid sick time for every 30 hours worked.
  • Small businesses (fewer than 20 employees) must allow employees to accrue up to 40 hours (5 days) per year.
  • Larger businesses (20 or more employees) must allow employees to accrue up to 56 hours (7 days) per year.
  • Paid sick time begins to accrue at the start of employment or October 1, 2025, whichever is later.
  • Unused paid sick time can be carried over to the following year, but usage limits apply (40 hours for small businesses, 56 hours for larger businesses).
  • Alternatively, employers can pay employees for unused sick time at the end of the year and provide the required amount at the beginning of the next year.

• Usage of Paid Sick Time:
  
  • Can be used for personal or family illness, medical appointments, preventive care, or during public health emergencies.
  • Employees can request paid sick time orally and are not required to find a replacement worker.
  • For absences longer than 3 consecutive workdays, employers can require reasonable documentation, such as a note from a healthcare professional or a written statement from the employee.

• Protection Against Retaliation: Employers cannot retaliate against employees for using paid sick time.
  
  • Absences due to paid sick time cannot be counted against employees in absence control policies.
  • Rights under the act cannot be waived by any agreement or policy.

• Notice and Posting Requirements: Employers must provide written notice to employees about their rights under the act by September 15, 2025, or at the start of employment, as well as a poster in a conspicuous place.
  
  • Notices must include information on the amount of paid sick time, terms of use, protection against retaliation, and contact information for the Department of Labor, and must be provided in English and any language spoken by at least 5% of the employer’s workforce if a model notice is available in that language.
  • Employers must record the paid sick time available, taken, and paid on or attached to the employee’s regular paycheck.
  • Employers must display a poster with the required information at the workplace or provide it electronically if there is no physical workplace.

• Enforcement and Penalties: The Nebraska Department of Labor enforces the act and may adopt rules and regulations.
  
  • Employers can be fined up to $500 for the first violation and up to $5,000 for subsequent violations, and those with unpaid citations are barred from contracting with the state or political subdivisions.
  • Employees can file lawsuits for violations and are entitled to legal and equitable relief, including attorney fees.

• Confidentiality: Employers must keep health information confidential and separate from other personnel records.

Business Considerations

• Employers should create or update their policies and handbooks to comply with the new requirements.

• Employers should provide written notice to employees about their rights under the act by September 15, 2025, or at the start of employment, and display a poster with the required information in a conspicuous place or electronically if there is no physical workplace.

• Employers should be aware of non-compliance penalties, including fines up to $500 for the first violation and up to $5,000 for subsequent violations.

Source References

• Nebraska Initiative 436 Pamphlet 
• Nebraska Initiative 436, Paid Sick Leave Initiative (2024)

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