2024 Nebraska Labor & Employment Year End Review

Kansas City, Mo. (April 3, 2025) - Nebraska's labor and employment landscape is undergoing significant changes. From new paid sick leave requirements to enhanced protections for workers, these changes are reshaping the relationship between employers and employees across the state.

A New Era for Worker Benefits

In a landmark decision, Nebraska voters have approved Initiative 436, introducing mandatory paid sick leave for workers across the state. Starting October 1, 2025, this new law will ensure that every eligible worker has access to paid time off for health-related needs. The law takes a nuanced approach, recognizing the different capabilities of businesses based on their size. Smaller employers with fewer than 20 workers must provide at least 40 hours of sick leave annually, while larger businesses must offer a minimum of 56 hours.

Strengthening Protections for Young Workers

Nebraska has also taken decisive steps to protect its youngest workers. The state legislature has enhanced the Department of Labor's authority to investigate potential violations of child labor laws and increased penalties for violations. Employers who fail to comply now face serious consequences – a Class I misdemeanor that could result in up to a year in prison, a $1,000 fine, or both. Perhaps most notably, these penalties can compound daily once an employer has been notified of a violation, creating a strong incentive for immediate compliance.

Wages and Working Conditions

Effective January 1, 2025, Nebraska raised its minimum wage to $13.50 per hour, significantly above the federal minimum of $7.25. This commitment to worker compensation comes with careful considerations for specific situations. Young workers under 20 may be paid a training wage of 75% of the federal minimum wage for their first 90 days, while tipped employees must receive at least $2.13 per hour in direct wages, provided their total compensation with tips reaches the standard minimum wage.

Supporting First Responders and Their Families

Nebraska has expanded its support for first responders through significant changes to the First Responder Recruitment and Retention Act. The program now offers broader tuition waiver eligibility and includes important provisions for legal dependents, particularly in cases where an officer or firefighter dies in the line of duty.

Creating Economic Opportunities

Nebraska is implementing several innovative programs to attract and retain talent. The new Relocation Incentive Act offers significant benefits for both employers and high-skilled workers moving to Nebraska. Employers can receive tax credits for half of their relocation expenses (up to $5,000) when bringing in new talent, while qualifying employees can benefit from special tax provisions on their wages.

The state is also recognizing the service of its National Guard members through a complete income tax exclusion for qualifying service, including those serving as federal dual-status technicians. This change, effective January 1, 2025, represents a significant benefit for service members and their families.

Modernizing Business Operations

Nebraska is streamlining its approach to nonresident taxation, introducing clear thresholds and guidelines for short-term work in the state. New provisions specifically address modern workforce realities, such as conference attendance and remote work arrangements. These changes include protective measures for employers who make good-faith efforts to comply with withholding requirements, recognizing the challenges of managing a mobile workforce.

Looking Forward

For employers, these changes mean adapting to new requirements while potentially benefiting from clearer guidelines and incentive programs. For workers, they represent enhanced protections and benefits, from guaranteed sick leave to stronger workplace safeguards. State agencies, particularly the Department of Labor, will play a crucial role in implementing and enforcing these changes.

For more information on these developments, contact the author or editors of this alert. Visit our Labor & Employment Practice page for additional alerts in this area.

Author:

Patrick Murphy, Partner

Editors:

Blake M. Edwards, Partner

Alan L. Rupe, Managing Partner - Wichita and Kansas City