On October 1, 2025, the Nebraska Healthy Families and Workplaces Act (NHFWA) will take effect, mandating paid sick time in Nebraska for eligible employees to earn and use for personal or family health needs.
This landmark legislation, overwhelmingly approved by Nebraska voters, will significantly impact business operations and employee benefits structure.
NHFWA Key Elements
The NHFWA applies to businesses with one or more employees, covering full-time, part-time, or temporary workers who clock at least 80 hours in Nebraska annually. Under this law, employees will accrue one hour of paid sick leave for every 30 hours worked. Small businesses with fewer than 20 employees must allow at least 40 hours of paid sick time per year, while larger companies must provide up to 56 hours annually.
These hours can be used for personal or family health needs, including mental or physical illness, medical appointments and preventative care. NFWA also covers absences due to public health crisis or the need to care for a family member. Employers cannot require workers to find their own replacements when using sick leave.
What are Employers Responsible For?
Employers should review and potentially revise your existing paid time off policies to ensure they align with the NHFWA. By September 15, 2025, you must provide written notice to all employees detailing the new sick leave policy, including accrual rates, usage terms and protections against retaliation. Also, you’ll need to implement a system to track leave accrual and usage if one is not in place.
If your current PTO policy meets the NHFWA’s requirements, you may not need to add a separate sick leave category and can use your current in-place plan.
How will this Impact Benefits Packages?
While the NHFWA focuses on paid sick leave, it may impact your company’s insurance plans and overall benefits package. As employees gain access to paid time off, you may notice changes in how they utilize their health insurance benefits. For example, there may be a rise in preventative care visits or earlier treatment of health issues – potentially leading to long-term cost savings for all.
While reviewing your plans, consider exploring options that complement the paid sick leave benefit, such as telemedicine services or wellness programs. These solutions could help employees maximize their new paid time off while promoting long-term health and wellness.
Next Steps for Employers
There are a series of things employers should do before the NHFWA goes into effect next autumn.
- Educate your HR team and time management staff about the law’s requirements
- Update your employee handbooks and create clear communication plans to inform your workforce upcoming changes
- Consider consulting with legal counsel to ensure your policies are fully compliant
As October 1, 2025 approaches, it’s crucial to stay proactive and adapt policies to improve workforce health, satisfaction and productivity. If you have further questions, reach out to your UNICO account manager.
