Introduction to employment laws in Nebraska
Overview
Apart from federal regulations, Nebraska also has numerous state requirements related to minimum wage, meal breaks, child labor, employee pay and benefits, leaves of absence, and workplace safety.
Understanding these state-specific laws, in addition to federal requirements, is crucial for businesses looking to hire in Nebraska. We’ve put together this guide with everything you need to know.
Employing in Nebraska: Key employment laws and practices
Standard work hours
Full-time employment in Nebraska typically ranges between 30 to 40 hours per week, although no state laws regulate work hours for most sectors.
For contractual workers, the scope of standard work hours significantly depends on the specific terms outlined in the contract.
Businesses must clearly define these parameters in advance to ensure compliance with relevant Nebraska employment laws.
Self-employed professionals have greater flexibility in determining their work hours.
Minimum wage and overtime
In Nebraska, businesses have a statutory obligation to pay employees a minimum wage of $12 per hour, which is higher than the federal standard. Exceptions apply for some categories such as student workers, trainees, and tipped employees.
Overtime rules are governed by the federal Fair Labor Standards Act (FLSA). Non-exempt employees are entitled to 1.5 times their regular pay for hours worked beyond 40 in a workweek. The Nebraska exemption threshold is $684 per week, aligning with the federal minimum.
Insurance and benefits
In Nebraska, businesses have specific obligations concerning health, dental, and vision insurance, retirement benefits, and other statutory benefits. Under Nebraska’s mini-COBRA law, smaller employers with 2 to 19 employees must offer healthcare continuation coverage for up to six months in case of employee termination (unless for misconduct) or death.
| Benefit type | Employer obligation |
| Health insurance | Mandatory for most businesses and under federal regulation found in the Affordable Care Act |
| Dental and vision insurance | Specific to employer policy |
| Retirement benefits/401k | Specific to employer policy |
| Healthcare continuation coverage | Up to six months post-termination |
| Unemployment insurance | Required |
| Workers’ compensation insurance | Required |
Multiplier makes it easy to manage benefits for Nebraska employees.
Meal and rest periods
Nebraska employment laws stipulate that employers who operate assembly plants, workshops, or mechanical establishments must provide employees with a meal break of at least 30 consecutive minutes for every eight-hour shift.
This break must be uninterrupted, and employees are not required to remain at the workplace during this time. This provision ensures that employees are allowed sufficient rest and nourishment during their work hours to maintain productivity and well-being.
Nebraska HR compliance does not explicitly require employers to provide additional rest breaks during the workday. It is recommended that employers consider offering shorter breaks throughout the day for enhanced employee satisfaction and productivity. Federal law found in the Fair Labor Standards Act (FLSA) states that any short breaks provided (usually 5-20 minutes) should be paid.
Anti-discrimination laws
Anti-discrimination laws in Nebraska provide protection to employees beyond the federal guidelines. The Nebraska Fair Employment Practice Act (NFEPA) prohibits employers with 15 or more employees from discriminating against or harassing individuals based on protected characteristics such as race, color, sex (including pregnancy), national origin, marital status, disability, and religion.
The Nebraska Age Discrimination in Employment Act bars employers with 20 or more employees from discriminating on the basis of age (40 years and older). Also notable is the prohibition of retaliation against individuals who oppose discriminatory employment practices or participate in proceedings under these anti-discrimination laws.
Leave policies
Sick and vacation leave, paid or unpaid, are not required under the law in Nebraska. Should the employer offer either in an employment contract, it may need to pay exiting employees for the related accrued time.
Nebraska employment laws specify various other types of leave that employers need to provide. They include:
| Leave type | Coverage | Paid/Unpaid |
| Family military leave | Employers with 15+ employees | Unpaid |
| Military leave | All employers | Unpaid |
| Voting leave | All employers | Paid |
| Election official leave | All employers | Unpaid |
| Jury duty leave | All employers | Unpaid |
| Emergency responder leave | Employers with 10+ employees | Unpaid |
Termination laws
In Nebraska, employment is generally at-will, meaning either the employer or employee can terminate the employment relationship at any time, for any reason or no reason, provided it’s not unlawful. Employers are also prohibited from terminating employees based on discriminatory reasons or in retaliation for certain protected activities.
Nebraska HR compliance requires that terminated employees receive their final wages, including accrued vacation pay, by the next regular payday or within two weeks of termination, whichever comes first.
Severance pay is not mandated by Nebraska employment laws unless it is stipulated in the employee’s contract or the company’s policy.
Easily onboard employees in Nebraska?
Safety and health
Nebraska employment laws encompass several safety regulations. Apart from those covered under OSHA, the Nebraska Clean Indoor Air Act prohibits smoking in workplaces to protect employees from secondhand smoke. Employers can also prohibit weapons in workplaces, except in privately owned vehicles parked in a company parking lot, which can carry concealed weapons if securely locked away.
Nebraska drivers are prohibited from using handheld devices to read, type, or send messages while driving, promoting safe driving practices.
Taxes in Nebraska
Both employers and employees in Nebraska have tax obligations. Employers withhold state income tax from employees’ wages and remit it to the Nebraska Department of Revenue. Federal income tax, Social Security, and Medicare taxes are also withheld.
Employers pay Federal Unemployment Tax (FUTA) and State Unemployment Tax (SUTA). The State Unemployment Tax rate varies depending on the employer’s experience rating and the state’s unemployment fund balance.
Tax type | Employer pays | Employee pays |
Federal income tax | No | Yes |
State income tax | No, range of 2.46% – 5.84% | Yes |
Social security tax | Yes | Yes |
Medicare tax | Yes | Yes |
Federal unemployment tax (FUTA) | Yes | No |
State unemployment tax (SUTA) | Yes | No |
Managing Nebraska employees with an Employer of Record (EOR)
Navigating employment laws and HR compliance considerations in Nebraska can be a complex task, especially for businesses growing their teams. Multiplier is a trusted partner, on hand to ensure you are always compliant with Nebraska employment laws.
Our Employer of Record (EOR) solution enables businesses to legally employ full-time workers in Nebraska without setting up a U.S. entity. Our all-in-one platform allows you to hire, onboard, pay, and manage international employees and contractors from a single interface. Moreover, our global payroll platform ensures your U.S. workforce is paid on time whilst managing local taxes, contributions and withholdings.
Let Multiplier shoulder your administrative burden so you can concentrate on building a world-class team. Book a demo today.
FAQs
The Nebraska Fair Employment Practice Act prohibits employers with 15 or more employees from discriminating against individuals based on race, color, sex (including pregnancy), national origin, marital status, disability, and religion. The Nebraska Age Discrimination in Employment Act protects those aged 40 years and above working with employers having 20 or more employees from age discrimination.
The Nebraska Equal Pay Act prohibits employers with two or more employees from wage discrimination based on sex for equal work requiring equal skill, effort, and responsibility under similar working conditions. Employers are allowed wage differentials based on a seniority or merit system, a system measuring earnings by quantity or quality of production or any factor other than sex.
In Nebraska, employers can conduct preemployment drug and alcohol testing but the process is regulated by state law for employers with six or more employees. The law guides how the tests are performed and how the results are managed.
The current minimum wage in Nebraska is $12.00 per hour, with some exceptions. Employers operating assembly plants, workshops, or mechanical establishments must give employees a meal break of at least 30 consecutive minutes in each eight-hour shift.
Yes, an employer in Nebraska can make deductions from employees’ wages that are required by state or federal law and expressly authorized in writing by the employee. These may include deductions for health insurance, retirement, breakages, uniforms, or cash shortages.
