Understanding LB 698: Potential Changes to Nebraska's Paid Sick Leave Law

In November 2024, nearly 75% of Nebraskans voted in favor of a law requiring employers to provide paid sick leave to their employees. Under the Nebraska Healthy Families and Workplaces Act, set to take effect on October 1, 2025, businesses with fewer than 20 employees must provide at least five days (40 hours) of paid sick leave, while larger employers must offer seven days (56 hours). However, a new bill—Legislative Bill 698 (LB 698)—proposes key amendments that could change the scope of this law before it even goes into effect.

What is LB 698?

LB 698, introduced by Senator Paul Strommen, seeks to modify the Nebraska Healthy Families and Workplaces Act in several ways. The bill proposes the following changes:

• Exempting Certain Workers: Seasonal and temporary agricultural workers, as well as employees under 16 years old, would no longer qualify for paid sick leave.

• Redefining Employer Thresholds: Employers with 10 or fewer workers would be exempt from offering paid sick leave.

• Changing Enforcement Mechanisms: The Nebraska Department of Labor would become the sole authority responsible for enforcement, eliminating private legal actions from employees.

• Implementing Administrative Penalties: Employers found in violation of the act could face fines of up to $500 for a first offense and $5,000 for subsequent violations. Additionally, employers with unpaid citations would be barred from contracting with the state.

The bill is scheduled for a hearing by the Business and Labor Committee on February 3, 2025, at 1:30 p.m.

Pros and Cons of LB 698

Supporters of LB 698 argue that:

• Small businesses, particularly those with 10 or fewer employees, may struggle to afford mandatory paid sick leave.

• Seasonal and temporary agricultural work is unique, and requiring paid sick leave could disrupt these industries.

• Streamlining enforcement through the Department of Labor instead of private legal action reduces potential legal disputes and administrative burdens.

Opponents of LB 698 argue that:

• The bill undermines the will of the voters, who overwhelmingly supported paid sick leave.

• Exempting certain workers leaves some of Nebraska’s most vulnerable employees without crucial benefits.

• Eliminating private legal action weakens worker protections and could lead to under-enforcement of the law.

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What’s Next?

With strong opinions on both sides, the debate over LB 698 is expected to be contentious. Advocacy groups such as Paid Sick Leave for Nebraskans have expressed disappointment, arguing that all workers should have the right to care for themselves or their families without fear of losing income.

Nebraska residents are encouraged to stay informed and participate in discussions about the bill. The upcoming hearing provides an opportunity for the public to voice their support or concerns regarding these proposed changes.

As the legislative process unfolds, Nebraskans will see whether the original paid sick leave law remains intact or if LB 698 reshapes its provisions before the October implementation date.