Civil action proposed for paid sick leave violations

The Business and Labor Committee considered a proposal Feb. 9 to reinstate protections against employers who violate provisions of a voter-approved paid sick leave ballot initiative.

In November 2024, voters approved the Nebraska Healthy Families and Workplaces Act to provide eligible employees the right to earn and use paid sick leave for family health needs based on the size of their employer — up to 40 hours annually for employers with fewer than 20 employees and 56 hours for businesses with more than 20 employees.

Among other changes, the act was amended last session to remove protections for workers who face retaliation from their employer for using paid sick leave and the ability for employees to seek restitution for earned sick leave that was not granted.

LB1089, introduced by Seward Sen. Jana Hughes, would reinstate those protections under the act and allow employees to bring a civil action up to one year after a violation.

Hughes said the current “loophole” could prevent workers from receiving the paid leave to which they are entitled. For example, she said, employers could pay less in fines under existing law for an initial violation of the act than it would cost them to provide a week of paid sick leave to a minimum wage worker.

“[Reintstating] the private cause of action … serves as a strong deterrent to violating the Nebraska Healthy Families and Workplaces Act,” Hughes said. “Without [it], bad actors could deny their employees paid leave.”

Jo Giles of the Women’s Fund of Omaha supported the proposal, saying 75% of Nebraska voters supported providing those protections to workers. Many employees have shared with the organization that they have not used their paid sick leave due to fear of reduced hours, losing their jobs or other retribution, she said.

“While we know most employers in Nebraska … would not operate in such an unscrupulous manner, there could potentially be some instances where employees need to be protected from these predatory employment practices,” Giles said. “[LB1089] addresses this by providing a mechanism for employees to pursue legal action in these instances.”

Ryan McIntosh testified in opposition to the measure on behalf of the National Federation of Independent Businesses, Nebraska Chamber of Commerce and Industry and a number of other business organizations.

He said the bill’s “broad” protections could result in actions against employers who do not comply with other portions of the Nebraska Healthy Families and Workplaces Act, such as failure to display a poster outlining leave policies.

“The act continues to be a compliance trap for employers and confusing for employees,” McIntosh said. “We would request the cause of action be limited only to the failure to supply sick leave or for retaliatory conduct, not for mundane, unintentional violations of the act.”

The committee took no immediate action on LB1089.