Nebraska Healthy Families and Workplaces Act Accrual Plan Update
To comply with the Nebraska Healthy Families and Workplaces Act effective October 1, 2025, the accrual plan for Nebraska paid sick leave has been updated. The previous “Nebraska Paid Sick Leave Law” accrual setup required modification to meet new legal standards, including a mandatory threshold of 80 hours worked before accrual begins and immediate availability of accrued hours without waiting periods. This ensures that the system aligns with the new law while supporting accurate payroll corrections.
Functionality
- Accrual Start Condition:
Accrual begins only after the employee has worked 80 hours. Hours worked prior to this threshold do not earn accrual. - Usage Availability:
There is no waiting period for use or availability of accrued sick leave hours. Once eligibility is met, accrued leave can be used immediately. - Accrual Rate:
Employees earn sick leave at the rate of 1 hour for every 30 hours worked. - First Accrual Calculation:
On the paycheck, where the employee’s total hours worked first exceed 80 hours, the system calculates accrual only on the hours worked above 80.- Example: If an employee works three 40-hour periods (total 120 hours), the first accrual is based on 40 hours (120 - 80), resulting in 1.333 hours accrued.
- Catch-Up Model:
Each pay period, after the start, the system calculates the total sick leave the employee should have earned based on all hours worked (excluding the first 80) and adjusts the sick leave balance accordingly. This model accounts for any payroll corrections retroactively. - Compliance:
The plan ensures compliance with Nebraska’s paid sick leave law by integrating these accrual rules directly into the payroll and time management system.
This feature guarantees that accrual and usage of paid sick leave in Nebraska are accurately tracked according to the new legal requirements, providing both employers and employees with compliant and transparent leave management.