Starting October 1, 2025, Nebraska will have a new paid sick time (PST) law. It applies to employers with 11 or more employees who work 80 or more hours in the state in a calendar year. Below are some of the law’s key provisions.
Accrual, Carryover, and Frontloading
Employees will accrue PST at a rate of one hour for every 30 hours worked. Accrual begins on October 1, 2025, or after an employee has worked for at least 80 consecutive hours, whichever is later. Employers can calculate exempt employees’ accrual based on a 40-hour workweek (even if employees generally work more than that) or their usual number of hours if they regularly work less than 40. According to the Nebraska Department of Labor (NDOL), PST also accrues while an employee is using PST.
Employers can cap annual PST accrual as follows:
Employers with 11–19 employees: 40 hours per year
Employers with 20 or more employees: 56 hours per year
Unused accrued PST must be carried over from year to year—there is no maximum carryover cap. However, employers aren’t required to let employees carry over unused PST if they pay employees for the unused time at year-end and frontload their full amount of PST for immediate use at the beginning of the next year.
Instead of using an hour-by-hour accrual system, employers can frontload the full amount of PST that an employee is expected to accrue for immediate use at the beginning of each year.
Any paid sick time the employer provided to an employee between January 1, 2025, and September 30, 2025, that can be used for the reasons covered by the sick leave law can be counted toward the employer’s obligation to provide PST in the 2025 calendar year.
Use
Employees can use PST as soon as it’s accrued for the following reasons:
Their own or their family member’s mental or physical illness, injury, or health condition, including preventive medical care
To attend a meeting regarding their child’s mental or physical illness, injury, or health condition at the child’s school or care facility
The closure of their workplace or their child’s school or place of care because of a public health emergency
To care for themselves or a family member because of a determination of exposure to a communicable disease
Employers can cap annual PST use as follows:
Employers with 11–19 employees: 40 hours per year
Employers with 20 or more employees: 56 hours per year
PST needs to be provided in the smallest increment of time tracked by the employer’s payroll system (but not more than one hour) and paid at the employee’s regular rate of pay or minimum wage, whichever is greater.
As is standard with sick leave laws, employers can’t require that employees find their own coverage or deny them use of PST if a replacement worker can’t be found.
Employers that require notice of the need to use PST must provide a written policy that contains reasonable procedures for employees to provide notice.
Documentation
When employees use PST for more than three consecutive workdays, employers can request reasonable documentation to support that the leave was taken for a covered purpose.
Notice and Posting Requirements
Employers must provide each employee with a written notice of their rights to PST at the time of hire or by September 15, 2025—whichever is later—as well as display a poster in a conspicuous and accessible place in the workplace. Both the notice and poster must be provided in English and any language spoken by at least 5% of employees if the state has made a version available in that language. The state has created a model employee notice and poster for employers to use.
For remote employees, this information can be provided electronically.
Paystubs
Available PST balance, year-to-date PST used, and total PST pay received all need to be included on each regular paystub or as an attachment.
Payout at Termination
Employers don’t have to pay out unused PST at termination. However, employees who are rehired within 12 months of separation must have their accrued but unused PST restored if it wasn’t paid out at termination.
Paid Time Off Policies
Employers can use a new or existing paid time off policy as long as it meets or exceeds the requirements of the PST law.
More Information
For more information, see the NDOL’s PST FAQs.
Action Items
Update your handbook to include a PST policy or update your current PTO policy to meet the requirements of the PST law.
Provide the PST notice to current employees and add it to your new hire paperwork by September 15, 2025.
Post the PST notice.