🇺🇸 NEBRASKA STATE LAW – 2026 UPDATE

Nebraska Remote Work Laws 2026

⚠️Informational only — not legal or tax advice.

Last Updated: December 2025
Applicable Period: 2026 tax year and current employment regulations
Key Characteristic: Employers with remote workers physically located in Nebraska

Nebraska remote work laws and employment regulations guide

Table of Contents

Click any item below to jump to the relevant section

Overview

Nebraska generally maintains a balanced approach to employment regulation, combining federal standards with specific state requirements in certain areas. According to official state sources, Nebraska follows federal law for many employment matters while establishing its own standards for minimum wage, paid sick leave (beginning October 2025), and certain other workplace protections.

General Employment Landscape (2025-2026)

Minimum Wage:

  • 2025: $13.50/hour (effective January 1, 2025)
  • 2026: $15.00/hour (scheduled for January 1, 2026)
  • 2027+: Indexed annually for inflation

Paid Sick Leave:

  • Required beginning October 1, 2025 under the Nebraska Healthy Families and Workplaces Act
  • Applies to employers with 11 or more employees
  • Accrual: 1 hour per 30 hours worked

State Income Tax:

  • Nebraska has a progressive income tax system
  • Convenience of the Employer rule modified in 2025 (see Tax section)
  • New seven-day threshold for nonresident withholding (effective January 1, 2025)

Meal/Rest Breaks:

  • Required for certain industries (assembly plants, mechanical establishments, workshops)
  • Generally 30 minutes for 8-hour shifts in covered industries
  • Not mandated for most other industries

Overtime Rules:

  • Follows federal Fair Labor Standards Act (FLSA)
  • No additional state daily overtime requirements

Workers’ Compensation:

  • Generally required for employers with one or more employees
  • Nebraska Workers’ Compensation Court administers claims

Employment At-Will:

  • Nebraska follows at-will employment doctrine
  • Either party may terminate for any lawful reason

Source: Nebraska Department of Labor – dol.nebraska.gov

Official State Agency Information

Nebraska Department of Labor

The Nebraska Department of Labor administers and enforces state employment laws, including wage and hour standards, paid sick leave, employee classification, and unemployment insurance.

Contact Information:

The Nebraska Department of Labor can provide official interpretations and guidance on state employment law. For legal advice on how laws apply to your specific situation, consult a licensed attorney.

Nebraska Workers’ Compensation Court

The Nebraska Workers’ Compensation Court administers the workers’ compensation system and handles claims and disputes.

Contact Information:

  • Website: newcc.gov or wcc.ne.gov
  • Phone: 800-599-5155 or 402-471-6468
  • Address: PO Box 98908, Lincoln, NE 68509-8908

For workers’ compensation questions, employers and employees may contact this agency or consult legal counsel.

Nebraska Department of Revenue

The Nebraska Department of Revenue administers state tax laws, including income tax withholding for employees.

Contact Information:

  • Website: revenue.nebraska.gov
  • Phone: 402-471-5729 or 800-742-7474
  • Address: PO Box 94818, Lincoln, NE 68509-4818

For tax compliance questions, consult the Department of Revenue and qualified tax professionals.

Major State Employment Statutes

The following statutes are commonly referenced in Nebraska employment matters. This is general information only and does not constitute legal interpretation.

1. Nebraska Minimum Wage Act

Statutory Citation: Neb. Rev. Stat. § 48-1203
Official Source: nebraskalegislature.gov/laws/statutes.php?statute=48-1203

General Provisions (as stated in the statute):

  • Establishes state minimum wage at $13.50/hour (2025) and $15.00/hour (2026)
  • Beginning 2027, minimum wage indexed annually for inflation
  • Applies to employers with four or more employees
  • Provides for specific variations (tipped employees, student-learners)

Application to Remote Work: These provisions generally apply based on where work is physically performed. Specific applicability may depend on employer size and employee type. Consult Nebraska DOL for guidance on particular circumstances.

2. Nebraska Healthy Families and Workplaces Act (Initiative 436)

Statutory Citation: Initiative Law 2024, No. 436 (as amended by LB 415)
Effective Date: October 1, 2025
Official Source: dol.nebraska.gov (Paid Sick Time section)

General Overview:

According to the Nebraska Department of Labor, this law generally requires private employers with 11 or more employees to provide earned paid sick time to eligible employees.

Coverage typically includes:

  • Private employers with 11+ employees
  • Employees who work at least 80 hours in Nebraska in a calendar year

Exemptions may include:

  • Federal, state, and local government employers
  • Employers with fewer than 11 employees
  • Certain agricultural employees
  • Independent contractors
  • Workers under age 16
  • Workers employed fewer than 80 hours in a calendar year

Actual coverage and obligations depend on specific circumstances. Employers should consult Nebraska DOL guidance and legal counsel.

Source: Nebraska Department of Labor – Paid Sick Time Guidance

3. Nebraska Wage Payment and Collection Act

Statutory Citation: Neb. Rev. Stat. §§ 48-1228 to 48-1232
Official Source: nebraskalegislature.gov

General Provisions:

  • Addresses payment of wages, including final wages
  • Final wages due on next regular payday or within two weeks of separation (whichever is sooner)
  • Prohibits withholding final wages for unreturned employer property

Application to Remote Work: These provisions generally apply to all employees performing work in Nebraska, including remote workers. Consult Nebraska DOL for specific payment requirement questions.

4. Nebraska Workers’ Compensation Act

Statutory Citation: Neb. Rev. Stat. §§ 48-101 to 48-1,118
Official Source: newcc.gov

General Framework:

According to Nebraska statutes, the Workers’ Compensation Act generally applies to employers with one or more employees in Nebraska. The Act provides the exclusive remedy for work-related injuries.

Coverage typically includes:

  • Most private employers with one or more employees
  • State and local government agencies
  • Charitable organizations
  • Part-time employees

Exemptions may include:

  • Federal employers
  • Certain agricultural operations (with specific conditions)
  • Independent contractors

Actual coverage determinations are made by the Nebraska Workers’ Compensation Court based on specific facts. Consult the Court or legal counsel for guidance.

Source: Nebraska Workers’ Compensation Court – Employer FAQs

5. Employee Classification Act

Statutory Citation: Neb. Rev. Stat. §§ 48-2101 to 48-2111
Effective Date: July 15, 2010
Official Source: dol.nebraska.gov

General Purpose:

The Employee Classification Act addresses misclassification of workers in construction and delivery services sectors. The Act aims to protect workers from being improperly classified as independent contractors when they should be classified as employees.

Covered Industries:

  • Construction contractors
  • Delivery services

The Nebraska Department of Labor enforces this Act and conducts investigations of potential misclassification. For classification questions, consult Nebraska DOL and legal counsel.

Employee Classification Standards

Classification Framework in Nebraska

Nebraska uses different tests for classification depending on the purpose:

  1. For Workers’ Compensation: Common law test based on case precedent
  2. For Unemployment Insurance: ABC test
  3. For Employee Classification Act: Applies to construction and delivery services
  4. For Federal Tax Purposes: IRS common law test

Each test examines different factors and may produce different results. A worker could potentially be classified as an employee under one test and an independent contractor under another.

Unemployment Insurance Classification (ABC Test)

Statutory Authority: Neb. Rev. Stat. § 48-604
Official Guidance: Nebraska Department of Labor

According to Nebraska law, for unemployment insurance purposes, the state generally applies an ABC test. Under this test, a worker is presumed to be an employee unless the employer can demonstrate all three of the following conditions:

Part A: Freedom from Control

General Description: The individual is free from control and direction in performing the service, both under a contract and in fact.

Factors that may be relevant:

  • Whether the worker sets their own schedule
  • Whether the worker determines how to perform the work
  • Whether the hiring entity provides detailed instructions
  • Degree of supervision exercised

Illustrative Scenario (for general understanding only):

A graphic designer works on projects for multiple clients from their home office. They determine their own hours, use their own equipment, and decide how to execute design projects based on client specifications. The client provides the project requirements but does not direct the designer’s methods or schedule.

General Analysis: This scenario may share some characteristics commonly associated with independent contractor relationships because the worker appears to exercise substantial control over how, when, and where work is performed. However, actual classification depends on all facts and circumstances and requires analysis of all three parts of the ABC test.

⚠️ Important: This example is purely illustrative and does not constitute a legal determination. Classification depends on the totality of circumstances.

Part B: Work Outside Usual Business

General Description: The service is performed outside the usual course of business of the employer or is performed outside all places of business of the employer.

Factors that may be relevant:

  • Whether the work is central to the hiring entity’s business
  • Whether the work is performed at the hiring entity’s location
  • Whether the work is integral to business operations
  • Nature of the hiring entity’s business

Illustrative Scenario:

A restaurant hires an attorney to review lease agreements for a new location. The attorney works from their own law office and provides legal advice on real estate matters.

General Analysis: This scenario may share characteristics commonly associated with independent contractor status under Part B because legal services are outside the usual course of a restaurant’s business (which is food service). However, all three parts of the ABC test must be satisfied, and actual classification requires complete analysis.

⚠️ Important: This is not a determination. Consult Nebraska DOL or legal counsel.

Part C: Independently Established Business

General Description: The individual is customarily engaged in an independently established trade, occupation, profession, or business of the same nature as that involved in the service performed.

Factors that may be relevant:

  • Whether the worker offers services to the general public
  • Whether the worker has their own business identity (LLC, business cards, etc.)
  • Whether the worker serves multiple clients
  • Whether the worker makes independent business decisions
  • Whether the worker advertises their services

Illustrative Scenario:

A web developer maintains their own LLC, markets their services online, serves 15-20 clients throughout the year, sets their own rates, and provides similar services to multiple businesses in different industries.

General Analysis: This scenario may share characteristics commonly associated with independent contractor status under Part C because the worker appears to operate an established business. However, actual classification requires evaluation of all three parts and depends on complete factual circumstances.

⚠️ Important: This is general background only. Not a classification determination.

Workers’ Compensation Classification (Common Law Test)

Statutory Authority: Neb. Rev. Stat. §§ 48-101 et seq.
Official Source: Nebraska Workers’ Compensation Court

For workers’ compensation purposes, Nebraska courts apply common law criteria based on case precedent. According to the Nebraska Workers’ Compensation Court, there are no specific statutory criteria under the Workers’ Compensation Act defining employee vs. independent contractor.

Factors Nebraska Courts May Consider:

Based on appellate case law, Nebraska courts generally examine factors such as:

  • Control: Who controls the manner and means of performing the work?
  • Payment Method: How is the worker compensated (hourly/salary vs. by project)?
  • Furnishing Equipment: Who provides tools, materials, and equipment?
  • Right to Terminate: Can either party terminate at will?
  • Business or Employment Relationship: Nature of the overall relationship
  • Skill Required: Level of specialized skill involved
  • Time of Performance: Who determines when work is performed?

These factors are evaluated based on the totality of circumstances. No single factor is determinative.

Important Note: If a worker is ultimately determined to be an employee rather than an independent contractor, the employer or workers’ compensation insurer is obligated to provide benefits under the Workers’ Compensation Act, regardless of initial classification.

Source: Nebraska Workers’ Compensation Court – Employer FAQs

Remote Worker Classification Considerations

For remote workers, classification analysis may involve additional considerations:

  • Physical Location: Where work is actually performed vs. where business is located
  • Virtual Control: Degree of control exercised in remote environment
  • Equipment and Technology: Who provides computers, software, internet
  • Integration: How integrated is the worker into the business operations
  • Independence: Level of business independence in remote setting

These factors don’t change the legal tests but may affect how tests are applied. Classification of remote workers should be reviewed with legal counsel familiar with Nebraska law and your specific circumstances.

Employee Classification Act (Construction & Delivery Services)

Applicability: Construction contractors and delivery service employers

The Employee Classification Act specifically addresses construction and delivery services. Under this Act, the Nebraska Department of Labor investigates potential misclassification and can assess penalties.

Covered Employers:

  • Construction contractors (as defined in Neb. Rev. Stat. § 48-2103)
  • Delivery service employers

Enforcement: Nebraska DOL conducts investigations through:

  • Tips and referrals
  • Random worksite visits
  • Worker and business complaints
  • Field audits

Employers in covered industries should consult Nebraska DOL for guidance on compliance with the Employee Classification Act.

Source: Nebraska Department of Labor – Employee Classification Act

Consequences of Misclassification

According to various official sources, misclassification may result in:

For Employers:

  • Potential back payment of unemployment insurance taxes
  • Possible workers’ compensation premium adjustments and coverage obligations
  • Potential wage and hour claim exposure
  • Possible penalties under Employee Classification Act (for covered industries)
  • Tax implications at state and federal levels
  • Potential liability for unpaid benefits

For Workers:

  • May affect access to unemployment benefits
  • May affect workers’ compensation coverage
  • May affect wage and hour protections
  • May affect leave benefit eligibility

Specific consequences depend on many factors including the jurisdiction, severity of misclassification, and individual circumstances.

How to Seek Guidance on Classification

Classification questions should be addressed through:

  • Nebraska Department of Labor: 402-471-2239 – dol.nebraska.gov
  • Nebraska Workers’ Compensation Court: 800-599-5155 – newcc.gov
  • Employment attorney licensed in Nebraska
  • Tax professional familiar with Nebraska and federal law
  • IRS (for federal tax implications): irs.gov

Minimum Wage Information

Current Rate Information

According to the Nebraska Department of Labor and state statute, Nebraska’s minimum wage is currently on a phased increase schedule approved by voters.

Minimum Wage Rates:

Effective Date Standard Rate Notes
January 1, 2025 $13.50/hour Current rate as of December 2025
January 1, 2026 $15.00/hour Scheduled increase
January 1, 2027 and beyond Adjusted annually Indexed to inflation (CPI-U Midwest Region)

Statutory Authority: Neb. Rev. Stat. § 48-1203
Source: Nebraska Legislature – Statute 48-1203

Note: The Nebraska Department of Labor calculates and publishes the inflation-adjusted minimum wage rate by October 15 each year for the following year, beginning October 15, 2026.

Employer Coverage

According to Nebraska law, the state minimum wage generally applies to employers with four or more employees. Employers with fewer than four employees are subject to federal minimum wage requirements under the Fair Labor Standards Act (FLSA).

Federal Minimum Wage: $7.25/hour (as of December 2025)

Since Nebraska’s minimum wage is higher than the federal rate, covered Nebraska employers generally must pay the Nebraska rate.

Application to Remote Workers

Based on general legal principles, minimum wage typically applies based on where work is physically performed. A worker performing work from a location in Nebraska would generally be subject to Nebraska minimum wage requirements, regardless of where the employer is located.

However, specific situations may vary based on factors such as:

  • Nature of the employment relationship
  • Interstate commerce considerations
  • Applicable federal laws
  • Employer size and coverage

Employers with remote workers should consult the Nebraska Department of Labor or legal counsel for guidance on particular circumstances.

Tipped Employees

Nebraska law allows employers to pay tipped employees a reduced cash wage if certain conditions are met.

Tipped Employee Provisions:

Cash Wage Minimum: $2.13/hour (as permitted under federal law)
Tip Credit: Up to $11.37/hour (as of 2025, when minimum is $13.50)

General Requirements:

  • The combined cash wage plus tips must equal or exceed Nebraska’s minimum wage ($13.50/hour in 2025)
  • If tips don’t bring the employee to minimum wage, employer must make up the difference

Important Note: Nebraska law does not clearly define a tip earnings threshold to qualify as a “tipped employee,” nor does it require employers to provide advance notice that an employee will be compensated as a tipped worker. However, employers must ensure total compensation meets minimum wage requirements.

Source: Nebraska DOL – Minimum Wage FAQs

Training Wage for Young Workers

Nebraska law provides for a training wage for certain workers under age 20.

Training Wage Provisions:

  • Rate: 75% of federal minimum wage (currently $5.44/hour)
  • Duration: First 90 calendar days of employment
  • Age Limit: Applies only to workers under age 20
  • Termination: Training wage ends at 90 days OR when worker turns 20, whichever comes first

After the training period, the full Nebraska minimum wage applies.

Source: Neb. Rev. Stat. § 48-1203

Student-Learners

For student-learners in bona fide vocational training programs, Nebraska law may allow payment at 75% of the applicable minimum wage rate.

General Framework: Employers must verify program qualifications and compliance requirements with the Nebraska Department of Labor.

Local Minimum Wages

As of December 2025, Nebraska law does not permit cities or counties to establish minimum wages higher than the state minimum. This is known as state preemption.

Therefore, the statewide minimum wage applies uniformly across all Nebraska jurisdictions.

Resources for Current Information

Note: Minimum wage compliance depends on factors including employer size, employee type, and work location. This information is general background only. Consult official sources and legal counsel for specific compliance obligations.

Overtime and Break Requirements

Overtime Standards

Governing Framework: Nebraska generally follows the federal Fair Labor Standards Act (FLSA) for overtime requirements. Nebraska does not have separate state overtime laws beyond federal requirements.

Federal FLSA Standards:

  • Overtime Threshold: Generally triggered after 40 hours worked in a workweek
  • Overtime Rate: 1.5 times the employee’s regular rate of pay
  • No Daily Overtime: Nebraska does not require overtime for hours worked beyond a certain number in a single day

Official Source: U.S. Department of Labor – FLSA Overtime

Application to Remote Workers

Overtime regulations generally apply based on the nature of the work and employment relationship, not work location. Remote workers performing non-exempt work are generally subject to the same overtime requirements as on-site workers.

Key Considerations for Remote Workers:

  • Employers must track all hours worked, including remote hours
  • After-hours communications may constitute compensable time
  • On-call time at home may be compensable depending on restrictions
  • Virtual meetings outside regular hours generally count as work time

These determinations are fact-specific. Employers should consult wage-hour counsel for guidance on tracking and compensating remote workers.

Overtime Exemptions

The FLSA recognizes certain exemptions from overtime requirements. To qualify for an exemption, employees generally must meet tests related to salary basis, salary level, and job duties.

Executive, Administrative, and Professional (EAP) Exemptions

Three-Part Test:

  1. Salary Basis: Employee must be paid a predetermined salary not subject to reduction based on quality or quantity of work
  2. Salary Level: Must meet minimum salary threshold
  3. Duties: Must perform exempt-level duties as defined by federal regulations

2025-2026 Salary Thresholds:

As of December 2025, following a U.S. District Court ruling in November 2024 that invalidated proposed increases, the federal salary thresholds remain:

  • EAP Exemption: $35,568 annually ($684/week)
  • Highly Compensated Employee (HCE): $107,432 annually

Note: These thresholds were not increased to the previously proposed levels ($58,656 for EAP and $151,164 for HCE) due to the court ruling.

Source: U.S. Department of Labor – Overtime Exemptions

Duties Tests

Meeting the salary threshold alone is insufficient for exemption. Employees must also satisfy specific duties tests.

General Characteristics (from federal regulations):

Executive: Primary duty is management; directs work of two or more employees; has authority to hire/fire or significant input into such decisions

Administrative: Primary duty is office or non-manual work directly related to management or general business operations; exercises discretion and independent judgment on significant matters

Professional: Primary duty requires advanced knowledge in a field of science or learning, typically acquired through prolonged specialized instruction

Actual exemption determination requires detailed analysis of specific job duties. Job titles alone do not determine exemption status.

Computer Professional Exemption

Computer professionals may be exempt if they meet specific criteria and are compensated either:

  • Hourly: At least $27.63/hour (federal rate), OR
  • Salary: At least $684/week (same as EAP threshold)

Plus must perform specific computer-related duties as defined by federal regulations.

Source: U.S. Department of Labor – Computer Employee Exemption

Other Exemptions

Federal law recognizes various other exemptions including:

  • Outside sales employees
  • Certain commissioned retail or service employees
  • Certain seasonal and recreational employees
  • Specific industry exemptions

Each exemption has specific criteria. Consult U.S. Department of Labor guidance and legal counsel for exemption determinations.

Meal and Rest Break Requirements

Nebraska’s Break Standards:

Nebraska law requires meal breaks for employees in specific industries but does not mandate breaks for most workers.

Industries with Required Meal Breaks

Covered Industries:

  • Assembly plants
  • Mechanical establishments
  • Workshops

Requirement: At least 30 consecutive minutes for lunch in each 8-hour shift

Statutory Authority: Neb. Rev. Stat. § 48-212
Source: Nebraska Department of Labor – Lunch Period Law

Industries Without Required Breaks

For most other industries, Nebraska law does not mandate meal or rest breaks for adult employees.

What this generally means:

  • Employers are not required by Nebraska law to provide breaks
  • If employers choose to provide breaks, federal FLSA rules may apply

Federal Standards for Voluntary Breaks:

If an employer voluntarily provides breaks:

  • Short breaks (5-20 minutes): Generally must be paid as work time
  • Bona fide meal periods (30+ minutes): May be unpaid if employee is completely relieved of duties

Source: U.S. Department of Labor – FLSA Break Time

Application to Remote Workers

Break requirements in covered industries (assembly plants, mechanical establishments, workshops) would generally apply to remote workers if they are employed in those industries. However, remote work is less common in these traditional manufacturing settings.

For remote workers in industries without mandatory breaks, employers should consider:

  • Establishing clear break policies
  • Ensuring unpaid meal breaks are truly duty-free
  • Documenting that breaks are taken
  • Handling interruptions during breaks appropriately

Consult legal counsel for break policy development specific to remote work arrangements.

Resources

For specific questions about overtime and breaks:

Important: Wage and hour compliance is fact-specific and technical. Violations can result in significant back pay liability and penalties. This information is for general background only. Employers should obtain professional guidance on classification, time tracking, and break compliance.

Paid Sick Leave Program

Nebraska Healthy Families and Workplaces Act

Effective Date: October 1, 2025

In November 2024, Nebraska voters approved Initiative 436, establishing the Nebraska Healthy Families and Workplaces Act. The law was subsequently amended by Legislative Bill 415 in May 2025. The Act requires most private employers in Nebraska to provide earned paid sick time beginning October 1, 2025.

Legal Framework:

  • Initiative: Nebraska Initiative 436 (November 2024)
  • Amendment: LB 415 (effective June 2025)
  • Administering Agency: Nebraska Department of Labor
  • Official Resource: dol.nebraska.gov/laborstandards

Employer Coverage

Who Must Provide Paid Sick Time:

According to Nebraska Department of Labor guidance, the law generally applies to private employers with 11 or more employees.

Covered Employers:

  • Private employers with 11 or more employees in Nebraska

Exempt Employers:

  • Employers with fewer than 11 employees
  • Federal government
  • State of Nebraska
  • Political subdivisions (counties, cities, etc.)

Employee Count: For determining employer size, Nebraska DOL counts only individuals who worked at least 80 hours in Nebraska. Employees working outside Nebraska don’t count toward the threshold.

Employee Eligibility

Who Can Earn Paid Sick Time:

Employees who work at least 80 hours in Nebraska in a calendar year are generally eligible.

Eligible Employees:

  • Any individual employed by a covered employer in Nebraska
  • Must work at least 80 consecutive hours before accrual begins

Exempt Workers:

  • Employees working fewer than 80 hours per year in Nebraska
  • Independent contractors
  • Individual owner-operators
  • Seasonal or temporary agricultural employees
  • Individuals under age 16

Source: Nebraska Department of Labor – Paid Sick Time FAQs

Accrual Provisions

Accrual Rate: 1 hour of paid sick time for every 30 hours worked

When Accrual Begins:

  • For current employees (as of October 1, 2025): Accrual begins October 1, 2025, after completing 80 hours of consecutive employment
  • For new hires after October 1, 2025: Accrual begins after completing 80 consecutive hours of employment

Annual Caps:

The amount of paid sick time that must be provided varies by employer size:

Employer Size Annual Cap
11–19 employees 40 hours
20+ employees 56 hours

Carryover: Unused paid sick time carries over to the following year. However, employers can cap annual usage at the applicable limit (40 or 56 hours), even if an employee has accrued more through carryover.

Example (Illustrative Only):

An employee at a company with 25 employees accrues 56 hours in Year 1 but only uses 20 hours. They can carry over the unused 36 hours to Year 2. In Year 2, they accrue another 56 hours for a total balance of 92 hours. However, the employer can limit annual use to 56 hours in Year 2.

This is a simplified illustration. Actual accrual depends on specific circumstances and interpretation of regulations.

Permitted Uses

General Uses (from statute):

According to Nebraska law, paid sick time may generally be used for:

  1. Employee’s own health needs:
    • Diagnosis, care, treatment, or preventive care
    • Mental or physical illness, injury, or health condition
  2. Family member’s health needs:
    • Care for family member’s diagnosis, treatment, or preventive care
    • Care for family member’s mental or physical illness, injury, or health condition
  3. Public health emergency:
    • When employee’s or family member’s presence in community would jeopardize health of others due to exposure to communicable disease
  4. Domestic violence, sexual assault, or stalking:
    • To obtain services, seek legal assistance, participate in proceedings, or take other safety measures

Eligible Family Members:

The statute defines “family member” to include:

  • Spouse or domestic partner
  • Child (biological, adopted, foster, stepchild, legal ward, or child for whom employee stands in loco parentis)
  • Parent (biological, adoptive, foster, step, legal guardian, or individual who stood in loco parentis)
  • Sibling
  • Grandparent
  • Grandchild

Source: Initiative 436 as amended; Nebraska DOL Guidance

Notice and Documentation

Employee Notice Requirements:

According to Nebraska regulations, employees may request paid sick time orally, in writing, or by electronic communication.

Employer Documentation Requests:

Employers may implement reasonable written procedures for requesting paid sick time, provided the procedures are provided to employees in writing.

Medical Certification:

  • Employers may request documentation only for absences of more than three consecutive days
  • Documentation must relate to purpose for which sick time was used
  • Employers cannot require disclosure of details regarding health condition or domestic violence situation

Employer Obligations

Notice Requirements:

Employers must provide written notice to employees on or before September 15, 2025 (or at time of hire for employees hired after September 15, 2025) that includes:

  1. Employees are entitled to paid sick time beginning October 1, 2025
  2. The amount of paid sick time based on employer size
  3. Terms of use of paid sick time
  4. Retaliation for requesting or using paid sick time is prohibited
  5. Employees have the right to file a complaint if sick time is denied
  6. Contact information for the Nebraska Department of Labor

Languages: Notice must be provided in English and any language that is the first spoken language of at least 5% of the employer’s workforce (if model notice available in that language).

Poster Requirement:

Employers must display a poster with paid sick time information in a conspicuous and accessible place at each worksite. For remote employees, the poster must be sent electronically.

Paycheck Notification:

Employers must include paid sick time information on or with each paycheck, showing:

  • Hours accrued
  • Hours used
  • Hours paid out (if any)

Existing PTO Policies

Employers with existing paid time off (PTO) policies are not required to provide additional sick time if their policy meets certain conditions:

Requirements:

  • Policy provides an amount equal to or greater than required by the Act
  • Leave can be used for the same purposes as paid sick time
  • Leave accrues or is frontloaded at a rate equal to or greater than required

Employers are not required to allow accrual or carryover beyond their existing PTO policies if those policies already meet or exceed the Act’s requirements.

Credit for 2025

Paid leave provided between January 1, 2025, and September 30, 2025, may be counted toward an employer’s 2025 obligation under the Act if the leave could be used as paid sick time as defined by the law.

Anti-Retaliation Protection

The law prohibits retaliation against employees for requesting or using paid sick time. Prohibited actions include:

  • Termination
  • Suspension
  • Demotion
  • Reduction in hours or pay
  • Other adverse employment actions

Enforcement

Administration: Nebraska Department of Labor

Penalties:

  • First violation: Up to $500
  • Second or subsequent violation: Up to $5,000

Private Right of Action: The law does not provide employees with a private right of action. Enforcement is through the Nebraska Department of Labor.

State Contracts: Employers with unpaid citations are not eligible to contract with the State of Nebraska until citations are paid.

Resources for Compliance

  • Nebraska Department of Labor Paid Sick Time Page: dol.nebraska.gov/laborstandards
  • Nebraska DOL Hotline: 402-471-2239
  • Model Notices and Posters: Available at Nebraska DOL website
  • Paid Sick Time FAQs: [Available on Nebraska DOL website]

Workers' Compensation Overview

Legal Framework

Statutory Authority: Neb. Rev. Stat. §§ 48-101 to 48-1,118
Administering Agency: Nebraska Workers’ Compensation Court

Contact Information:

  • Website: newcc.gov or wcc.ne.gov
  • Phone: 800-599-5155 or 402-471-6468
  • Address: PO Box 98908, Lincoln, NE 68509-8908

The Nebraska Workers’ Compensation Act provides the exclusive remedy for employees to obtain benefits from employers for work-related injuries. The Act applies to most employees and employers in Nebraska.

General Coverage Requirements

Who Must Have Coverage:

According to Nebraska statutes, workers’ compensation coverage is generally required for:

  • Private employers with one or more employees
  • State of Nebraska
  • Governmental agencies created by the state
  • Part-time employees
  • Minors
  • Charitable organizations

Exemptions:

Certain employers may be exempt, including:

  • Federal employers (covered under federal systems)
  • Certain agricultural operations (with specific conditions – see below)
  • Independent contractors (though classification is subject to determination)

Source: Nebraska Workers’ Compensation Court – Employer FAQs

Agricultural Operations

The status of agricultural operations was changed by LB 210 (2003).

General Framework:

  • Agricultural employers employing only related employees are exempt
  • Agricultural employers with unrelated employees are exempt unless they employ 10 or more unrelated, full-time employees on each working day for 13 calendar weeks (consecutive or not)
  • The Act applies 30 days after the 13th week

Definitions:

  • Full-time employee: Works one-half or more of regularly scheduled hours each pay period
  • Related employee: Spouse or person related within third degree by blood or marriage

Exempt agricultural employers may elect to provide coverage voluntarily.

Source: Nebraska Workers’ Compensation Court – Agricultural Operations

Nebraska’s Workers’ Compensation System

Nebraska operates a private insurance system. Employers can obtain coverage through:

  1. Private Insurance Carriers: Licensed workers’ compensation insurers in Nebraska
  2. Nebraska Workers’ Compensation Insurance Plan (NWCIP): Assigned risk pool for employers unable to obtain coverage in voluntary market
  3. Self-Insurance: Employers may apply to Nebraska Workers’ Compensation Court to become self-insured

Verification of Coverage:

The public can verify an employer’s workers’ compensation coverage using the Nebraska Workers’ Compensation Court’s online Coverage Lookup: newcc.gov – Coverage Lookup

Benefits Generally Available

According to Nebraska statutes, workers’ compensation benefits may include:

Medical Treatment

  • All authorized medical and hospital expenses for work-related injuries or illnesses
  • Choice of doctor provisions apply (see below)

Temporary Total Disability (TTD)

  • Paid when employee cannot work due to work-related injury
  • Rate: 66 2/3% of average weekly wage
  • Waiting period: First 7 days not paid unless disability lasts 6+ weeks
  • Average weekly wage based on 26 weeks prior to injury (50 weeks for seasonal employees)

Temporary Partial Disability (TPD)

  • Paid when employee can return to work at reduced capacity
  • Compensates for wage differential

Permanent Partial Disability (PPD)

  • Compensation for permanent impairment resulting from injury
  • Specific schedules for certain body parts
  • General disability for other impairments

Permanent Total Disability (PTD)

  • For workers who cannot return to any substantial gainful employment

Death Benefits

  • For fatal work-related injuries
  • Includes burial expenses and benefits for surviving spouse and dependents

Benefit Payment Timeline: Typically begins within 30 days after notice of injury.

Source: Nebraska Workers’ Compensation Court Statutes and Rules

Choice of Doctor

Employee’s Right to Choose:

Nebraska law provides employees with the right to choose their treating physician, with certain conditions:

Requirements:

  • Employee must choose a doctor who has previously treated the employee or a family member
  • If employee does not have such a doctor, employer chooses the physician
  • Once chosen, treating physician cannot be changed without prior written approval or court order

Employer Obligation: Employers must provide Form 50 (Choice of Doctor) to employees who report work-related injuries.

Source: Nebraska Workers’ Compensation Court – Worker FAQs

Remote Worker Coverage Considerations

⚠️ Complex and Fact-Specific Area

Workers’ compensation coverage of remote workers involves detailed factual analysis. The following is general background information only.

General Legal Standard:

Workers’ compensation typically covers injuries that “arise out of and in the course of employment.” Application to remote workers depends on specific facts.

Jurisdictional Requirements:

Nebraska workers’ compensation generally covers an injury if:

  • The injury occurred in Nebraska, OR
  • The employer was performing work in Nebraska or the employment is in Nebraska, OR
  • The employee was hired in Nebraska and the employer is doing business or performing work in Nebraska (even if injury occurred elsewhere)

Source: Nebraska Workers’ Compensation Court – Worker FAQs

Factors in Home Office Injury Determinations

According to general workers’ compensation principles and guidance, factors that may be relevant in evaluating home office injuries include:

  • Whether employee was engaged in work activity at time of injury
  • Whether injury occurred in designated work area
  • Whether injury occurred during work hours
  • Whether activity was authorized or expected by employer
  • Whether activity served employer’s interests
  • Whether injury resulted from employment-related duties
  • Distinction between work activities and personal comfort activities

No single factor is determinative. Each case depends on its complete factual circumstances.

Illustrative Scenarios

Important: The following scenarios are provided for general educational purposes only. They do not constitute coverage determinations, legal advice, or predictions of claim outcomes.

Scenario 1: Work Equipment in Home Office

An employee working remotely from a designated home office trips over computer cables while retrieving work documents during scheduled work hours.

General Observations: This type of scenario may share characteristics with situations that have historically been found compensable in some contexts because:

  • Activity was work-related (retrieving work documents)
  • Occurred during work hours
  • In designated work area

However, actual coverage would depend on factors including:

  • Whether home office was employer-designated or authorized
  • Nature of employment agreement regarding home office
  • Complete circumstances of incident

This is not a coverage determination. Actual determination would be made by Nebraska Workers’ Compensation Court.

Scenario 2: Repetitive Stress from Computer Work

An employee develops carpal tunnel syndrome after months of computer work performing job duties remotely.

General Observations: Occupational diseases and repetitive stress injuries may be compensable in some circumstances if they arise from employment. Determination depends on:

  • Medical documentation linking condition to work
  • Nature and extent of work activities
  • Whether condition arose from employment
  • Other medical and factual considerations

This is not a coverage determination. Consult medical professionals and Nebraska Workers’ Compensation Court.

Scenario 3: Personal Activity at Home

An employee is injured while preparing a personal meal in their kitchen during an unpaid lunch break.

General Observations: Personal comfort activities unrelated to work duties may be less likely to be considered work-related under general principles. However, specific facts matter:

  • Whether employee was completely relieved of duties
  • Whether activity was required or expected by employer
  • Relationship between activity and employment

This is general background only, not a coverage determination.

Every workers’ compensation claim is unique. Coverage determinations are made by the Nebraska Workers’ Compensation Court based on complete facts.

Reporting Requirements

For Employees:

  • Report injury to employer as soon as possible
  • Seek emergency medical treatment when necessary
  • Inform medical provider that injury is work-related
  • File claim within 2 years of injury date

For Employers:

  • File First Report of Alleged Occupational Injury or Illness within 10 days of notice
  • Provide Form 50 (Choice of Doctor) to injured employee
  • Report to workers’ compensation insurance carrier

Source: Nebraska Workers’ Compensation Court

Best Practices for Remote Work

The following are general recommendations only, not legal requirements:

For Employers:

  • Consider providing guidance on safe home office setup
  • Consider documenting remote work arrangements
  • Consider developing clear injury reporting procedures
  • Consider safety training for remote workers
  • Maintain workers’ compensation coverage for all employees

For Employees:

  • Consider establishing dedicated work area
  • Report injuries promptly to employer
  • Maintain clear work hour boundaries
  • Follow employer safety guidelines
  • Keep records of work location and setup

These are suggestions only and may not be suitable for all situations. Consult legal counsel and safety professionals.

Penalties for Non-Compliance

Employers operating without required workers’ compensation coverage may face:

  • Civil penalties assessed by Nebraska Department of Insurance
  • Prohibition from operating business until coverage obtained and penalties paid
  • Potential lawsuits from injured employees
  • Personal liability for damages

Source: Nebraska Workers’ Compensation Court

Resources

Final Reminder: Workers’ compensation is a highly specialized area involving complex medical, legal, and factual determinations. Coverage questions should be directed to:

  1. Nebraska Workers’ Compensation Court for official determinations
  2. Licensed attorney for legal advice
  3. Medical professionals for injury evaluation

Other Leave Entitlements

Family and Medical Leave Act (FMLA)

Federal Law: The Family and Medical Leave Act is a federal law that provides eligible employees with unpaid, job-protected leave for specified family and medical reasons.

Eligibility Requirements:

  • Employer has 50 or more employees within 75 miles
  • Employee has worked for employer for at least 12 months
  • Employee has worked at least 1,250 hours in the 12 months before leave

Leave Entitlement: Up to 12 weeks of unpaid leave per year for:

  • Birth and care of newborn
  • Adoption or foster care placement
  • Care for spouse, child, or parent with serious health condition
  • Employee’s own serious health condition
  • Qualifying military family needs

Application to Remote Workers: FMLA applies to eligible remote workers. The 50-employee threshold is calculated within 75 miles of the employee’s worksite, which for remote workers is generally their home location.

Source: U.S. Department of Labor – FMLA Information

State Family Leave

Nebraska does not have a separate state family and medical leave law beyond the federal FMLA. Employees must rely on federal FMLA protections if eligible, or employer policies.

Vacation and PTO

No State Requirement: Nebraska law does not require employers to provide paid vacation or paid time off (PTO) to employees.

Employer Policies: Vacation and PTO are considered fringe benefits that employers may choose to offer voluntarily.

Payout Upon Separation: According to Nebraska Department of Labor guidance, if an employer offers vacation or PTO benefits, any earned but unused vacation at the time of separation must be paid to the employee on their final paycheck, unless previously agreed otherwise.

Source: Nebraska DOL – General FAQs

Holidays

No State Requirement: Nebraska law does not require private employers to provide paid or unpaid holiday leave.

Public Employees: Public permanent employees are generally entitled to paid holiday leave for the duration of designated holidays.

Private Employers: May choose to provide holiday pay as a benefit, but it is not mandated by state law.

Jury Duty Leave

Protection: Nebraska law protects employees from discharge or adverse action for attending jury duty.

Pay Requirement: Employers are not required to pay employees for jury duty time, though some may choose to do so.

Source: Nebraska law generally protects jury duty participation, though specific statutory citations should be verified with Nebraska courts or legal counsel.

Military Leave

Federal Protections: The Uniformed Services Employment and Reemployment Rights Act (USERRA) provides federal protections for employees serving in the military.

Nebraska Veterans’ Preference: Nebraska has veterans’ preference laws for public employment and certain contract opportunities.

Source: Nebraska Department of Labor – Veterans Preference Information

Voting Leave

Nebraska does not have a specific state law requiring employers to provide time off for voting. However, employers may choose to provide such time as a matter of policy.

Employees should verify their specific rights with the Nebraska Secretary of State or legal counsel.

Bereavement Leave

Nebraska law does not require employers to provide bereavement leave. Employers may offer bereavement leave as a voluntary benefit.

Domestic Violence Leave

While Nebraska’s paid sick leave law (effective October 2025) allows use of sick time for domestic violence situations, there is no separate state domestic violence leave law beyond this provision and federal protections.

Note: Leave entitlements are complex and may overlap (for example, FMLA and paid sick leave). Employers should consult legal counsel to ensure compliance with all applicable federal and state requirements and to coordinate various leave provisions.

Anti-Discrimination Laws

Federal Protections

Several federal laws prohibit employment discrimination:

Title VII of the Civil Rights Act of 1964:

  • Prohibits discrimination based on race, color, religion, sex (including pregnancy, sexual orientation, and gender identity), and national origin
  • Applies to employers with 15 or more employees

Age Discrimination in Employment Act (ADEA):

  • Prohibits discrimination against individuals age 40 and older
  • Applies to employers with 20 or more employees

Americans with Disabilities Act (ADA):

  • Prohibits discrimination based on disability
  • Requires reasonable accommodations for qualified individuals with disabilities
  • Applies to employers with 15 or more employees

Genetic Information Nondiscrimination Act (GINA):

  • Prohibits discrimination based on genetic information

Equal Pay Act:

  • Requires equal pay for equal work regardless of sex

Source: U.S. Equal Employment Opportunity Commission – eeoc.gov

Nebraska State Protections

Nebraska Fair Employment Practice Act (NFEPA)

Statutory Authority: Neb. Rev. Stat. §§ 48-1101 to 48-1126

The Nebraska Fair Employment Practice Act prohibits discrimination in employment based on protected characteristics.

Coverage: Employers with 15 or more employees

Protected Characteristics:

  • Race
  • Color
  • Religion
  • Sex (including pregnancy)
  • Disability
  • Marital status
  • National origin
  • Age (40 and older, for employers with 20+ employees under separate state law)

Prohibited Actions: Discrimination in hiring, firing, compensation, terms and conditions of employment, and other employment practices.

Administering Agency: Nebraska Equal Opportunity Commission (NEOC)

Contact Information:

  • Website: neoc.nebraska.gov
  • Phone: 402-471-2024 or 800-642-6112
  • Address: 301 Centennial Mall South, 5th Floor, Lincoln, NE 68509

Source: Nebraska Equal Opportunity Commission

Nebraska Age Discrimination in Employment Act

Nebraska has a separate age discrimination law that applies to employers with 20 or more employees, prohibiting discrimination against individuals age 40 and older.

Pregnancy and Parental Leave

Federal Protections:

  • Pregnancy Discrimination Act (part of Title VII) prohibits discrimination based on pregnancy
  • FMLA provides unpaid leave for childbirth (if eligible)

Nebraska Provisions:

  • Sex discrimination under NFEPA includes pregnancy discrimination
  • If an employer provides parental leave for biological children, they must provide the same benefit to adoptive parents

Source: Nebraska statutes and NEOC guidance

Reasonable Accommodations

Under the ADA and Nebraska law, employers generally must provide reasonable accommodations to qualified individuals with disabilities unless doing so would create undue hardship.

For Remote Workers:

  • Accommodations may include modified work schedules, equipment, or work arrangements
  • Remote work itself may be a reasonable accommodation in some circumstances
  • Interactive process required to determine appropriate accommodations

Employers should consult legal counsel regarding accommodation requests.

Sexual Harassment

Sexual harassment is prohibited under both federal Title VII and Nebraska’s Fair Employment Practice Act as a form of sex discrimination.

Types of Sexual Harassment:

  • Quid Pro Quo: Employment benefits conditioned on sexual favors
  • Hostile Work Environment: Severe or pervasive unwelcome sexual conduct that creates intimidating, hostile, or offensive work environment

Employer Liability: Employers may be liable for harassment by supervisors, co-workers, and in some cases non-employees.

Remote Work Considerations: Harassment can occur in remote settings through virtual meetings, electronic communications, and other channels. Employers should maintain anti-harassment policies that address remote work environments.

Filing Complaints

Federal Complaints:

  • File with U.S. Equal Employment Opportunity Commission (EEOC)
  • Deadline: Generally 180 days from discriminatory act (300 days if state agency involved)
  • EEOC Contact: 800-669-4000 | eeoc.gov

Nebraska State Complaints:

  • File with Nebraska Equal Opportunity Commission (NEOC)
  • Deadline: 300 days from discriminatory act
  • NEOC Contact: 402-471-2024 | neoc.nebraska.gov

Individuals may file with both agencies (dual filing).

Resources

Remote Work Tax Considerations

Nebraska Income Tax Withholding for Remote Workers

Nebraska has specific rules governing income tax withholding for nonresident employees, including recent modifications effective January 1, 2025.

LB 1023 Modifications (Effective January 1, 2025)

Legislative Change: LB 1023, enacted in 2024, modified Nebraska’s “convenience of the employer” rule and established new thresholds for nonresident taxation.

New Seven-Day/$5,000 Threshold:

Effective for tax years beginning January 1, 2025, Nebraska income tax withholding is generally not required for wages paid to a nonresident employee if:

  1. The nonresident employee works in more than one state during the year, AND
  2. The nonresident employee works physically in Nebraska for seven days or less, AND
  3. The nonresident employee earns $5,000 or less for work physically performed in Nebraska

Both conditions must be met: An employee working 8+ days OR earning more than $5,000 in Nebraska would be subject to withholding.

Source: Nebraska Department of Revenue – 2025 Circular EN

Convenience of the Employer Rule (Modified)

What It Is: Nebraska’s convenience of the employer rule traditionally taxed nonresident employees working remotely for Nebraska employers as if they were working in Nebraska, unless the remote work was for the employer’s necessity rather than employee convenience.

2025 Modification: LB 1023 modified this rule. The convenience rule now applies only if the nonresident employee:

  • Works physically in Nebraska for more than 7 days, OR
  • Earns more than $5,000 for work physically performed in Nebraska

Practical Impact: Nonresident remote workers who work in Nebraska fewer than 8 days and earn less than $5,000 from Nebraska-based work are generally not subject to Nebraska withholding, even if working remotely for a Nebraska employer.

Source: National Taxpayers Union Foundation – 2025 ROAM Index

State Income Tax for Nebraska Residents

Resident Taxation: Nebraska residents are generally subject to Nebraska income tax on all income, regardless of where earned.

Remote Work for Out-of-State Employer:

  • Nebraska resident working remotely for out-of-state employer pays Nebraska income tax on that income
  • May also be subject to other state’s tax if performing work in that state
  • Potential for tax credits to avoid double taxation

Consult tax professional for multi-state tax situations.

Employer Tax Nexus

Nexus Defined: Nexus is a sufficient connection between a state and a taxpayer that allows the state to impose tax obligations.

Physical Presence: Having an employee physically working in a state generally creates nexus for the employer in that state.

Implications of Nexus:

  • Income Tax: Employer may need to file state income/franchise tax returns
  • Withholding: Employer may need to register for and remit state withholding taxes
  • Sales Tax: Employer may need to collect and remit sales tax in that state
  • Unemployment Tax: Employer may need to pay state unemployment insurance taxes

For Remote Workers: An employer hiring a remote worker in another state may create nexus in that state, triggering various tax obligations.

Source: Various state tax authorities and tax guidance

Relocation Tax Incentives (New in 2025)

LB 1023 also created new relocation tax incentives for both employers and employees, effective January 1, 2025.

Employer Credit:

  • Employers can claim 50% tax credit for qualifying employee relocation expenses
  • Up to $5,000 per employee per tax year
  • Employee must earn between $70,000 and $250,000 annually (indexed for inflation starting 2026)

Employee Exclusion:

  • Qualifying employees may make one-time election to exclude Nebraska-sourced wages from state income tax
  • Same salary requirements ($70,000-$250,000)
  • Employee must not have been Nebraska resident in year prior to claiming residency

Purpose: These provisions aim to attract skilled workers and encourage relocation to Nebraska.

Source: Lutz – Nebraska Law LB1023

Federal Tax Considerations

Home Office Deduction:

  • Generally not available to employees (eliminated by Tax Cuts and Jobs Act of 2017)
  • May be available to self-employed individuals meeting specific criteria

Employer Reimbursements:

  • Accountable plan reimbursements for business expenses generally not taxable to employee
  • Requirements apply for accountable plans

Source: IRS – irs.gov

Multi-State Tax Compliance

For employers with remote workers in multiple states:

Considerations:

  • Register for withholding in states where employees work
  • Understand reciprocal agreements between states (if any)
  • Determine proper allocation of employee wages across states
  • Track where employees physically perform work
  • Monitor employee relocations
  • File appropriate state returns

For Employees:

  • May need to file returns in multiple states
  • Understand resident vs. nonresident filing requirements
  • Claim credits for taxes paid to other states where applicable
  • Track work location if working in multiple states

This is complex and requires professional tax guidance.

Resources

  • Nebraska Department of Revenue: revenue.nebraska.gov | 402-471-5729
  • IRS: irs.gov | 800-829-1040
  • Tax Professional Referral: Contact Nebraska Society of CPAs or enrolled agents

Resources

State Agencies

Nebraska Department of Labor

Nebraska Workers’ Compensation Court

  • Website: newcc.gov or wcc.ne.gov
  • Phone: 800-599-5155 or 402-471-6468
  • Services: Workers’ compensation claims, coverage verification, employer/employee information

Nebraska Department of Revenue

  • Website: revenue.nebraska.gov
  • Phone: 402-471-5729 or 800-742-7474
  • Services: Tax withholding, tax compliance, Circular EN

Nebraska Equal Opportunity Commission

  • Website: neoc.nebraska.gov
  • Phone: 402-471-2024 or 800-642-6112
  • Services: Discrimination complaints, employment discrimination information

Federal Agencies

U.S. Department of Labor – Wage and Hour Division

  • Website: dol.gov/agencies/whd
  • Phone: 866-4-USWAGE (866-487-9243)
  • Services: FLSA compliance, FMLA, federal wage and hour laws

U.S. Equal Employment Opportunity Commission (EEOC)

  • Website: eeoc.gov
  • Phone: 800-669-4000
  • Services: Federal discrimination complaints, employment discrimination information

Internal Revenue Service (IRS)

  • Website: irs.gov
  • Phone: 800-829-1040
  • Services: Federal tax information, employer tax obligations

Occupational Safety and Health Administration (OSHA)

  • Website: osha.gov
  • Phone: 800-321-6742
  • Services: Workplace safety, OSHA compliance

Legal Resources

Nebraska State Bar Association

  • Website: nebar.com
  • Lawyer Referral Service: Available for finding employment attorneys

Legal Aid of Nebraska

  • Website: legalaidofnebraska.org
  • Services: Free legal assistance for low-income individuals (civil matters including employment)

Professional Organizations

Nebraska Society of Certified Public Accountants

  • For tax professional referrals

Society for Human Resource Management (SHRM)

  • Website: shrm.org
  • HR resources and professional development

Official Statute Sources

Nebraska Legislature

Frequently Asked Questions

General Employment

Q: Is Nebraska an at-will employment state?

A: Yes. Nebraska generally follows the at-will employment doctrine, meaning either the employer or employee may terminate the employment relationship at any time for any lawful reason, or no reason at all. However, terminations cannot be for unlawful reasons such as discrimination, retaliation, or violation of public policy. Consult legal counsel if you believe a termination was unlawful.

Q: What is Nebraska’s current minimum wage?

A: As of January 1, 2025, Nebraska’s minimum wage is $13.50/hour. It is scheduled to increase to $15.00/hour on January 1, 2026, and will be indexed to inflation annually thereafter. Verify current rates with the Nebraska Department of Labor.

Q: Do Nebraska employers have to provide breaks?

A: Nebraska law requires 30-minute meal breaks for employees in assembly plants, mechanical establishments, and workshops during 8-hour shifts. For most other industries, meal and rest breaks are not mandated by state law. However, if employers provide short breaks (5-20 minutes), federal law generally requires they be paid. Consult Nebraska DOL and legal counsel regarding specific situations.

Remote Work

Q: If I live in Nebraska but work remotely for a company in another state, which state’s laws apply?

A: This depends on the specific law. Generally:

  • Minimum wage: The law of the state where you physically perform work typically applies
  • Income tax: You typically pay income tax to your state of residence (Nebraska) and may have obligations in the state where work is performed
  • Workers’ compensation: May depend on where you were hired, where employer is located, and where injury occurs
  • Other laws: May vary

This is complex and requires consultation with legal and tax professionals.

Q: Do I need to pay Nebraska income tax if I work remotely for a Nebraska company while living in another state?

A: Under Nebraska’s modified convenience of the employer rule (effective 2025), you generally are not subject to Nebraska withholding if you work physically in Nebraska for 7 days or less AND earn $5,000 or less from Nebraska-based work. If you exceed either threshold, Nebraska withholding may apply. However, tax obligations depend on your specific circumstances. Consult a tax professional.

Paid Sick Leave

Q: When does Nebraska’s paid sick leave law take effect?

A: October 1, 2025. Employees who have worked at least 80 hours by that date will begin accruing paid sick time on that date.

Q: Does the paid sick leave law apply to my small business?

A: The law applies to private employers with 11 or more employees. If your business has fewer than 11 employees, you are not required to provide paid sick time under this law. Employee count is based on individuals who worked at least 80 hours in Nebraska. Consult Nebraska Department of Labor for clarification on your specific situation.

Q: Can I require a doctor’s note for paid sick leave?

A: Employers may request documentation only for absences exceeding three consecutive days. Documentation must relate to the purpose for which sick time was used. Employers cannot require disclosure of details regarding the health condition or domestic violence situation.

Workers’ Compensation

Q: If I’m injured while working from home, is it covered by workers’ compensation?

A: It depends on the specific facts. Workers’ compensation generally covers injuries that “arise out of and in the course of employment.” For home injuries, factors may include whether you were engaged in work activity, whether the injury occurred in your work area, and whether it occurred during work hours. Each case is unique. Report any work-related injury to your employer promptly and consult the Nebraska Workers’ Compensation Court or legal counsel.

Q: Does my Nebraska employer need workers’ compensation insurance?

A: Generally, yes. Nebraska employers with one or more employees are typically required to have workers’ compensation coverage. Some exceptions exist for certain agricultural operations and specific situations. Verify your requirements with the Nebraska Workers’ Compensation Court.

Employee Classification

Q: How do I know if I’m an employee or an independent contractor?

A: Classification depends on various factors and the purpose of the classification (unemployment insurance, workers’ compensation, tax, etc.). Nebraska uses different tests for different purposes. Generally, factors include degree of control, whether you operate an independent business, and the nature of your relationship with the hiring entity. Misclassification has significant implications. If uncertain, consult the Nebraska Department of Labor, IRS, and/or legal counsel.

Q: What are the consequences if I’m misclassified as an independent contractor?

A: For workers, misclassification may affect your access to unemployment benefits, workers’ compensation coverage, minimum wage protections, and other employee rights. For employers, misclassification may result in back taxes, penalties, liability for benefits, and other consequences. Contact Nebraska Department of Labor if you believe you’ve been misclassified.

Discrimination

Q: What should I do if I experience discrimination at work?

A: Document the discriminatory actions, report to your employer if there’s an internal complaint process, and consider filing a complaint with the Nebraska Equal Opportunity Commission (NEOC) within 300 days or the federal EEOC within 180-300 days. You may also consult an employment attorney. Legal Aid of Nebraska provides free assistance for qualifying individuals.

Tax

Q: Do I need to withhold Nebraska income tax for my remote employee who lives in Iowa?

A: If your employee performs work physically in Nebraska for more than 7 days OR earns more than $5,000 from work physically performed in Nebraska, you generally need to withhold Nebraska income tax. If below both thresholds, withholding is typically not required. However, you may still need to withhold Iowa taxes and comply with Iowa requirements. Consult the Nebraska Department of Revenue and a tax professional for specific guidance.

Q: I’m moving to Nebraska for work. Are there any tax benefits?

A: Nebraska offers relocation incentives under LB 1023 for qualifying employees earning between $70,000-$250,000 annually who were not Nebraska residents the prior year. Employers may also claim credits for relocation expenses. Consult a tax professional to determine if you qualify and how to claim these benefits.

Additional Questions

For questions not addressed here, contact:

  • Nebraska Department of Labor: 402-471-2239
  • Nebraska Workers’ Compensation Court: 800-599-5155
  • Nebraska Department of Revenue: 402-471-5729
  • Legal Aid of Nebraska: legalaidofnebraska.org
  • Employment Attorney: Contact Nebraska State Bar Association for referrals

Others

Arizona
California
Utah
Texas
Florida

Legal Disclaimer: This guide provides general background information only and does not constitute legal, tax, or professional advice. Employment laws are complex and subject to interpretation. Consult licensed legal counsel and official state agencies for guidance specific to your situation.