A. FTC Non-Compete Rules. On April 23, 2024, the Federal Trade Commission (FTC) finalized a new ruling prohibiting employers from enforcing noncompete agreements/clauses against workers. The ruling prohibits employers from enforcing existing noncompete agreements/clauses with any workers other than “senior executives.” In the ruling, “senior executives” are defined as workers in “policy-making positions” whose annual earnings exceed $151,164. The ruling allows enforcement of noncompete agreements/clauses between the seller and buyer of a business which necessarily would include individual stock redemption agreements signed by employees that receive stock as a bonus or through purchase. This new rule is currently under appeal, however, you should be mindful of any hires or responsibilities assigned to individuals which might rely on a noncompete agreement/clause.

B. Nebraska Department of Labor Minimum Salary. Beginning January 1, 2025, the minimum wage in Nebraska is $13.50 per hour. 

C. Nebraska Healthy Families and Workplaces Act.  The Nebraska Healthy Families and Workplaces Act (NHFWA) applies to businesses with one (1) or more employees, including full-time, part-time, and temporary employees who work in Nebraska for at least 80 hours in a calendar year. NOTE THAT THIS ACT TAKES EFFECT WITH DEADLINES ON OR BEFORE SEPTEMBER/OCT 2025

• Accrual of Sick Leave: For employers with fewer than twenty (20) employees, all employees must accrue one (1) hour of paid sick leave for every thirty (30) hours worked, up to a maximum of forty (40) hours per year. For employers with twenty (20) or more employees, all employees must accrue one (1) hour of paid sick leave for every thirty (30) hours worked, up to a maximum of fifty-six (56) hours per year. Unless their typical workweek is less than forty (40) hours, employees who are exempt from overtime requirements are assumed to work forty (40) hours per workweek for purposes of sick leave accrual. Unused sick leave may be carried over to the following year, but employers may cap sick leave accrual at forty (40) hours or fifty-six (56) hours depending on the number of employees. In lieu of allowing carryover, employers may elect to pay out unused sick leave and provide an employee with an amount of paid sick leave that meets or exceeds the requirements at the beginning of the next year for employee’s immediate use.

• Permitted Uses: An employee may use sick leave for an employee’s mental or physical health needs, including illness and medical appointments, as well as for the care of family members. Leave may also be used for the closures, by order of a public official, of the employee’s place of business or a child’s school or place of care.

• When Accrual Begins: Accrual of sick leave begins on October 1, 2025. 

• Documentation: For absences longer than three (3) consecutive days, employers can request “reasonable documentation” from employees. “Reasonable documentation includes (a) documentation signed by a health care professional indicating leave is necessary or (b) a written statement from the employee indicating that the employee is taking/took paid sick leave for a qualifying purpose as provided by the NHFWA.

• Notice of Leave: An employer may establish a policy requiring notice of the need to use sick leave. Such policy must contain reasonable procedures for employees to provide notice of the need to use sick leave. If no written policy is established, sick leave must be provided to the employee upon the employee’s oral request.



• Recordkeeping: Employees will not be required to disclose the details of an employee’s or a family member’s health information as a condition of providing paid sick leave. Any health information provided to an employer will be (a) maintained on a separate form and in a separate file from other personal information; (b) be treated as confidential medical records; and (c) not be disclosed except to the affected employee or with the express permission of the affected employee.

Anticipated Guidance from the Nebraska Department of Labor: It is anticipated that the Nebraska Department of Labor (NDOL) will provide guidance regarding specific compliance requirements. Such guidance is expected to address areas such as:

• Detailed Accrual and Carryover Provisions: Additional clarification on calculating sick leave accruals, particularly for part-time or temporary employees, and guidance on sick leave carryover limitations.



• Employer Documentation and Recordkeeping Requirements: NDOL regulations will likely detail what constitutes “reasonable documentation” for absences longer than three (3) consecutive days.

Steps To Take:     NOTE DEADLINES

1. Review Current Sick Leave Policies: Compare your current sick leave policies to the requirements of the NHFWA and begin preparation for policy modifications which will take effect once NDOL releases final regulations. Prior to October 1, 2025, update employee handbooks to incorporate the new law.
2. Set Up Tracking for Accruals: Ensure your HR systems are capable of tracking sick leave accrual and carryover accurately, particularly for hourly, part-time, temporary, and seasonal employees. This should be done well in advance of October 1, 2025.
3. Communicate with Employees: On or before September 15, 2025, employers must provide all employees with notice of the NHFWA. The notice must be provided in English and any language that is the primary language spoken by at least five percent (5%) of the employer's total workforce. It is anticipated that NDOL will make available a model notice and poster.