An Employer’s Compliance Starter Guide: Nebraska

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Nobody ever said running a business was easy. As an employer, you have many things to handle, and compliance is just one of them. 

In addition to federal regulations, each state has its own share of employment-related laws that business owners need to be aware of. Here, we’re highlighting some of these key state-specific requirements, and offering guidance to help you keep up.

Bear in mind that this list is not comprehensive, and there may be local or industry-specific employment requirements that your business needs to comply with. It’s best to consult with counsel to ensure compliance with all applicable laws, as Justworks does not provide legal advice.

Payroll Tax Accounts

Because Justworks reports Nebraska unemployment taxes on behalf of customers who utilize Justworks’ PEO services, Justworks may need to collect account information such as your account number and current rate. You can read more about it here: State Unemployment Insurance.

Recruiting & Hiring

Criminal History Inquiries

Nebraska has some limitations on inquiries into an employee or applicant’s criminal history records, including certain older arrest records and charges that have been dismissed or sealed.

Mineral*: Nebraska Applicant and Employee Screening 

E-Verify

Every employer who is awarded a contract by a public employer for the physical performance of services within Nebraska must register with and use E-Verify –which allows participating employers to electronically verify the employment eligibility of their employees in addition to their Form I-9. Additionally, employers claiming certain Nebraska tax credits must also utilize E-Verify.

Nebraska Department of Revenue (DOR): E-Verify Notice 

Mineral*: Nebraska Employment Verification and New Hire Reporting

Independent Contractors

When classifying workers as employees or independent contractors, there are a few things to consider, including the different tests that apply under federal and Nebraska employment laws, and potential penalties and other liabilities for misclassifying employees as independent contractors. Certain state laws apply tests that are more stringent than the guidance provided by federal agencies, such as the Internal Revenue Service (IRS) and U.S. Department of Labor. These laws operate in conjunction with federal laws. 

You can read our Help Center article on contractors for a general overview on how to determine if a worker is classified as an independent contractor or employee. The particular tests that apply in Nebraska, including the more stringent 10 factors test, at the links below.

Nebraska Department of Labor (DOL): Contractors

Mineral*: Nebraska Independent Contractors

Pay Requirements

Minimum Wage & Overtime 

Nebraska has a minimum wage that exceeds the current federal minimum wage.

Further information on Nebraska rules regarding overtime, minimum wage, and other wage & hour considerations can be found at the links below. 

Nebraska DOL: Labor Law FAQ 

Nebraska DOL:  Nebraska Minimum Wage Increases

Mineral* Nebraska Minimum Wage and Overtime

Pay Parity

Nebraska prohibits employers with two or more employees from paying different rates to members of  protected classes for equal work that requires comparable skill, effort, and responsibility.

Mineral*: Nebraska Pay Equity and Transparency

Leave

Emergency Response Leave

Nebraska employers with 10 or more employees are mandated to grant volunteer emergency responders unpaid leave for emergency response duties. Employers may not terminate or take any disciplinary action against employees that volunteer for emergency services. However, employers may subtract from employees wages when they are away from their place of employment due to an emergency response. 

Nebraska State Law: Volunteer Emergency Responders Incentive Act

Mineral* Nebraska Emergency Response Leave

Family and Medical Leave 

Although there's no requirement for employers to provide paid parental leave in Nebraska, if employers opt to offer it for the birth of a biological child, employers must also provide the same length of leave to adoptive parents. Additionally, employers with at least 15 employees are mandated to offer job-protected, unpaid leave for family military reasons

Mineral*: Nebraska Family and Medical Leave 

Time Off to Vote

Employers in Nebraska must provide employees up to two consecutive hours of time off to vote while polls are open, unless the polls are open during two consecutive non-working hours.

Mineral*: Nebraska Voting Leave

Harassment & Discrimination

In addition to protections under Federal law, Nebraska law prohibits employment discrimination based on membership in any protected class by employers covered under Nebraska's anti-discrimination laws, such as the Nebraska Fair Employment Practice Act (FEPA).

Nebraska Equal Opportunity Commission: Laws & Regulations

Mineral*: Nebraska Employment Discrimination and Accommodations

Separation 

Separation Pay

An employee’s final paycheck may be issued within two weeks or by the next regularly scheduled payday, whichever is sooner. 

Employers are also required to pay out any accrued, unused vacation. All vested vacation must be paid to the employee as wages at the final rate of pay.

Additionally, Nebraska employers are required to provide the Unemployment Insurance: Advisement of Benefit Rights to all separated employees regardless of the separation reason.

Mineral* Nebraska Separation

Business Closings and Layoffs

The Federal WARN Act imposes certain notice requirements and other obligations on covered businesses before conducting large-scale business closures, layoffs, or relocations. For more information, visit the links below.

US Department of Labor (DOL): Worker Adjustment and Retraining Notification (WARN) Act Advisor

US DOL: Plant Closings and Layoffs (WARN)

Nebraska DOL: Layoff Aversion and Response 

Mineral*: Nebraska Layoffs

Notes

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Disclaimer

This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.