Summary — LB 415 (Approved June 4, 2025)
Status and purpose
- LB 415 was introduced Jan. 17, 2025 by Sen. Beau Ballard and was approved by the Governor on June 4, 2025. It amends Initiative Law 2024, No. 436 (the Nebraska Healthy Families and Workplaces Act) and also makes related changes to the Gambling Winnings Setoff for Outstanding Debt Act, the Employment Security Law, and the Conveyance Safety Act. The bill assembles provisions from several bills (including LB402, LB435, LB698) via committee amendments (AM545).
Key substantive changes
1. Clarifies who is covered by the Paid Sick Leave Initiative
- Redefines "employ" as “to permit to work by an employer pursuant to an employment relationship.”
- Clarifies that certain categories are not employees for the Act’s purposes: independent contractors, individual owner–operators, seasonal/temporary agricultural workers, individuals working in Nebraska fewer than 80 hours per calendar year, and (in some versions) persons under age 16 (subject to conditions).
- Changes employer size thresholds: “small business” is defined as employers with at least 11 but fewer than 20 employees during a given week (full-, part-time, temporary included); employers meeting the 11+ threshold are generally within Act coverage.
Accrual, use, and administration of paid sick time
- Accrual begins after an employee works 80 consecutive hours, then at a minimum rate of 1 hour paid sick time per 30 hours worked.
- Annual caps: 40 hours for small businesses; 56 hours for larger employers (unless employer provides more).
- Paid sick time provided Jan 1–Oct 1, 2025 may be credited toward 2025 obligations; accrual begins at employment or Oct 1, 2025, whichever is later (some amendment versions adjusted dates).
- Employers with paid leave/PTO policies that equal/exceed required amounts need not provide additional paid sick time or permit accrual beyond their existing plan.
- Employers are not required to pay out unused paid sick time at separation; if rehired within 12 months, previously accrued unused time must be reinstated.
- Adds a method to calculate paid sick pay for commission, piece-rate, mileage, or fee-for-service workers using the average weekly rate (section 48-126) converted to an hourly rate on a 40-hour basis.
Enforcement and remedies
- Department of Labor citation process clarified; administrative penalties limited (up to $500 first violation, up to $5,000 for subsequent violations in committee language).
- Employees may bring civil suits for relief; statute contains provisions about admissibility of agency citations and time limits for actions.
Setoff of unemployment overpayments and other gambling-related changes (from LB402 / von Gillern amendments)
- Authorizes the Department of Labor (and gaming operators, per amended gaming statutes) to use the Gambling Winnings Setoff system to collect debts arising from overpayment of unemployment benefits — i.e., deductions from casino, sports wagering, parimutuel, or certain cash-device winnings.
- Treats gambling winnings as “earnings” under Employment Security Law for collection/offset purposes.
- Also provides for offset of unemployment overpayments against future unemployment benefits (administrative collection mechanism).
Conveyance Safety Act changes (from LB435)
- Updates rulemaking/inspection framework: allows the State Fire Marshal to grant variances and equivalency requests, update reference manuals, change scope (removes certain exceptions), permit third‑party insurance/certificates in lieu of State inspection, revise elevator mechanic/contractor licensing requirements, and require written requests for investigations.
- Clarifies supervision of state elevator inspector.
Who is affected
- Nebraska private-sector employers (particularly those with 11+ employees) and their workers.
- Small businesses (11–19 employees) subject to a lower annual paid sick cap (40 hours).
- Independent contractors, owner–operators, very low-hours workers, and certain seasonal agricultural workers are excluded from coverage under the Act as amended.
- Gaming operators, the Department of Labor, Department of Revenue, and the State Racing and Gaming Commission because of setoff/withholding changes.
- Elevator/conveyance industry and State Fire Marshal oversight.
Procedural / timeline notes
- Committee: Business & Labor advanced the bill with amendments (AM545) that incorporated provisions of LB402, LB435, LB698.
- Floor: Passed Final Reading 33–16 on May 28, 2025; presented to Governor May 29, 2025; signed into law June 4, 2025.
- Fiscal notes were prepared (available Apr. 2 and Feb. 21, 2025).
Potential impacts to watch
- Employers may change hiring classification/practices (e.g., use of contractors) due to clarified definitions.
- Businesses with existing PTO plans may avoid duplicative benefits if plans meet or exceed statutory requirements.
- Gaming operators will need to implement collection‑check procedures for winnings once systems are implemented.
- Department of Labor gains an additional administrative collection tool for unemployment overpayments.
