Hiring Employees in Nebraska

Classifying Your Workers Correctly

Your company must decide whether each Nebraska hire is an employee or an independent contractor using IRS common law tests and federal guidance. You should focus on behavioral control, financial control, and the overall nature of the relationship when making this call.

Nebraska follows federal standards, but state agencies can audit your classifications for unemployment insurance, workers’ compensation, and tax purposes. Misclassification can trigger back wages, unpaid taxes, penalties, and liability explained in Playroll’s employee misclassification guide at https://www.playroll.com/blog/employee-misclassification-guide.

Verify Employee Work Eligibility

For every Nebraska employee, you must complete federal Form I‑9 within 3 business days of the start date to verify identity and work authorization. You must review original acceptable documents from List A, or a combination of List B and List C, and record the details on the form.

Nebraska does not impose a universal E‑Verify mandate for private employers, though some public contracts may require it, so you should review contract terms carefully. You must retain I‑9s for at least 3 years after the hire date or 1 year after termination, whichever is later, and store them separately from general personnel files.

Create an Employee Onboarding Process

When you hire in Nebraska, you should issue a written offer letter outlining pay rate, pay schedule, exempt status, and key policies. During onboarding, collect federal Form W‑4, Nebraska Form W‑4N, direct deposit authorization if used, and signed acknowledgments for your handbook and required policies.

Your company must also provide any applicable state notices, such as unemployment insurance information and workers’ compensation postings, and report new hires to the Nebraska State Directory of New Hires within 20 days. Building a consistent onboarding checklist helps you control compliance risk and gives you clearer visibility into your total hiring costs in Nebraska.

Pay Frequency & Methods

In Nebraska, you must establish a regular payday and pay employees at least once each month, though many employers choose biweekly or semimonthly schedules. If you terminate an employee, all earned wages are generally due on the next regular payday or within 30 days, whichever comes first, and late payment can expose your company to wage claims and potential damages.

Payment Methods (How You Can Pay)

Your company can choose among several lawful wage payment methods in Nebraska, but you must always ensure employees receive full wages on time and a clear wage statement each pay period.

• Payroll Check: You may pay wages by check as long as it is payable at full face value in cash at a bank without fees to the employee.
• Cash: You can pay in cash if you provide a written or electronic statement showing hours worked, pay rate, deductions, and net pay.
• Direct Deposit (EFT): You may use direct deposit, but you should obtain the employee’s written consent and offer an alternative method if they opt out.
• Paycards: You can use paycards if employees have fee‑free access to their full wages at least once per pay period and receive required disclosures.
• Outsourced Payroll: You may outsource payroll to a provider, but your company remains responsible for compliance with Nebraska wage payment and recordkeeping laws.

When you hire employees in Nebraska, your company must withhold and remit federal and state payroll taxes and pay several employer‑only contributions. You will need to register with Nebraska agencies before running payroll so you can file returns and send payments on time.

Employer Tax Contributions

As a Nebraska employer, you must obtain a Nebraska income tax withholding account and a state unemployment insurance (UI) account, in addition to your federal EIN. You’ll then calculate and pay employer‑side Social Security, Medicare, federal unemployment (FUTA), and Nebraska UI based on each employee’s wages.

Employee Payroll Tax Contributions

Your Nebraska employees fund part of their own taxes through withholdings from each paycheck, which you must calculate and remit accurately. This includes federal income tax, employee portions of Social Security and Medicare, and Nebraska state income tax based on Form W‑4 and W‑4N elections.

Minimum Wage in Nebraska

Nebraska’s minimum wage is $13.00 per hour for most non‑exempt employees as of January 1, 2024, with scheduled increases in future years approved by voters. You must also follow federal and state rules for tipped employees, youth workers, and any limited exemptions that may apply to your business.

Working Hours in Nebraska

Nebraska does not set a daily maximum for adult working hours, but you must pay at least the minimum wage for all hours worked and keep accurate time records. Federal law requires you to track hours for non‑exempt employees and pay for certain preparatory, closing, and on‑call time when it qualifies as hours worked.

Overtime in Nebraska

Nebraska relies on the federal Fair Labor Standards Act for overtime, so you must pay at least 1.5 times the regular rate for all hours worked over 40 in a workweek by non‑exempt employees. You should clearly define your workweek in writing and ensure bonuses, commissions, and different hourly rates are properly included in the regular rate calculation.

In Nebraska, you decide which benefits to offer beyond what federal and state law require, but competitive packages often include health insurance, retirement plans, and paid time off. If you average 50 or more full‑time employees across the U.S., the ACA’s employer mandate will apply, so you must offer affordable, minimum‑value health coverage or face potential penalties.

Mandatory Leave Policies in Nebraska

Paid Time Off in Nebraska

Nebraska law does not require you to provide paid vacation or general PTO, so you can design your own policy to fit your budget and talent strategy. Once you adopt a PTO or vacation policy, you must follow your written terms on accrual, caps, and payout at separation, and you should communicate these rules clearly to employees.

Many Nebraska employers use a single PTO bank that covers vacation, personal time, and sometimes sick days, which simplifies administration but requires careful tracking. You should document how PTO is requested, approved, and carried over so managers apply the policy consistently.

Maternity & Paternity Leave in Nebraska

Nebraska does not have a separate state paid parental leave program, so you will primarily rely on federal FMLA and your own policies. If your company is FMLA‑covered and the employee is eligible, they may take up to 12 weeks of unpaid, job‑protected leave for birth, adoption, or foster placement.

You may choose to offer paid parental leave or allow employees to use accrued PTO or short‑term disability benefits during maternity or paternity leave. Make sure your policy is gender‑neutral and applied consistently to avoid discrimination issues.

Sick Leave in Nebraska

There is no statewide requirement for private Nebraska employers to offer paid sick leave, but you must honor any sick leave benefits you promise in contracts or policies. Some employers provide a separate sick bank, while others fold sick time into a general PTO policy to simplify administration.

Even without a paid sick leave mandate, you must comply with federal laws such as the ADA when employees need time off or accommodations for serious health conditions. Clear documentation of eligibility, accrual, and required notice helps you manage attendance while staying compliant.

Military Leave in Nebraska

Your company must provide job‑protected leave for employees performing military service under federal USERRA and applicable Nebraska statutes. You cannot terminate or discipline employees for taking qualifying military leave, and you must reinstate them to the same or an equivalent position when they return if they meet the law’s conditions.

While military leave is generally unpaid, employees may choose to use accrued PTO or vacation during their service if your policy allows it. You should also ensure benefits such as health coverage and retirement plans are handled according to USERRA continuation and reemployment rules.

Jury Duty in Nebraska

Nebraska law requires you to allow employees time off to serve on a jury and prohibits you from threatening or penalizing them for responding to a summons. You are not required to pay regular wages during jury service unless your policy or contract says otherwise, but you must allow employees to keep any juror fees they receive.

To reduce disruption, you can ask employees to provide a copy of the summons and to report back to work when they are excused for the day, if practical. Your jury duty policy should explain pay practices and documentation requirements in plain language.

Voting Leave in Nebraska

Nebraska requires employers to provide up to 2 consecutive paid hours off to vote if an employee does not have 2 consecutive non‑working hours while the polls are open. You may specify when during the workday the employee can be absent, as long as it still allows them to vote.

You should train supervisors on this rule so they do not inadvertently deny lawful voting leave or dock pay improperly. Including voting leave details in your handbook helps set expectations before election days arrive.

Bereavement Leave in Nebraska

Nebraska does not mandate bereavement leave, so whether it is paid or unpaid is up to your company’s policy. Many employers offer 1–5 days of leave for the death of an immediate family member to support employees during difficult times.

Whatever bereavement policy you adopt, apply it consistently and define who qualifies as a covered family member and what documentation, if any, you may request. Clear guidelines help managers respond compassionately while maintaining fairness across your workforce.

Termination Process

Nebraska is an at‑will employment state, so you or the employee can generally end the relationship at any time for any lawful reason, or no reason, as long as it is not discriminatory or retaliatory. You should document performance issues, follow your disciplinary procedures, and provide a final written notice of termination to reduce legal risk.

Notice Period

Nebraska law does not require advance notice of termination or resignation for most private‑sector employees, unless you have agreed to notice in a contract or collective bargaining agreement. Even without a legal requirement, many employers choose to request two weeks’ notice from resigning employees as a matter of policy and professional courtesy.

Severance

Severance pay is not required under Nebraska law, but you may offer it voluntarily, often in exchange for a signed release of claims drafted by counsel. If you adopt a severance plan or standard formula, you must administer it consistently and comply with any federal requirements that apply to releases, especially for older workers.