Employment 2025

USA – NEBRASKA Trends and Developments Contributed by: Tara Paulson, Mark Fahleson and Julie Schumacher, Rembolt Ludtke LLP

This statute was enacted “to provide an alternative remedy for plaintiffs who otherwise would be trapped in bureaucratic backlogs such as the one at NEOC”. However, it is a procedural statute that does not cre - ate any new substantive rights. Thus, when proceed - ing under this procedural loophole, NFEPA claims are still bound by the 300-day statute of limitations. Protections for employee political activity: Neb. Rev. Stat. Section 32-1537 Nebraska is in a small minority of states that criminal - ises certain interference with employee political activ - ity. Enacted in 1994, Nebraska’s law provides: “Any person who (1) coerces or attempts to coerce any of his or her employees in their voting or in any other political action at any caucus, convention, or election held or to be held in this state or (2) attempts to influence the political action of his or her employ - ees by threatening to discharge them because of their political action or by threats on the part of such person to close his or her place of business in the event of the passage or defeat of any issue on the ballot, in the event of the election or defeat of any candidate for public office, or in the event of the success or defeat of any political party at any election shall be guilty of a Class IV felony.” No reported case law interpreting or applying Section 32-1537 exists. Nebraska Wage Payment and Collection Act The Nebraska Wage Payment and Collection Act (NWPCA), Neb. Rev. Stat. Sections 48-1228 to 48-1236, regulates the payment of wages and fringe benefits. Its coverage is broad, covering private and public employers regardless of size, even a “personal representative of the estate of a deceased individual”. The NWPCA’s answer to common employment sce - narios differs from other jurisdictions. Deductions from pay Under the NWPCA an employer can only make deductions or withholdings from wages owed to an employee in three situations: • where the employer is required to or may do so by applicable law (eg, taxes);

• where required by a court order (eg, child support); or • the employee has authorised such deduction or withholding in a written agreement with the employer. Thus, when an employee separates from employment while owing the employer money or fails to return the employer’s property or equipment, absent a written agreement authorising a wage deduction for such, the employer’s only remedy is a legal action against the employee. Changes in pay dates The NWPCA requires 30 days’ advance written notice before an employee’s regular pay date can be changed. Commissions The NWPCA’s definition of “wages” includes com - missions. Disputes over the payment of commissions post-termination are a significant source of NWPCA litigation. The NWPCA provides that commissions are owed for “all orders delivered and all orders on file with the employer at the time of separation of employ - ment less any orders returned or canceled at the time suit is filed”. However, employers and employees can contract around this default rule provided the contract was effective: (i) at the commencement of employ - ment; or (ii) at least 90 days prior to separation. Paid leave Whether the NWPCA requires the payment of unused paid leave benefits to a former employee has been the subject of litigation and statutory revisions. As a result of these legislative changes and judicial interpreta - tions, the current state of the law is that earned and unused vacation leave must be paid out upon sepa - ration. Vacation includes paid time off (PTO) benefits, but does not include paid “sick leave”. Whether and how the NWPCA applies to the recent voter-enact - ed Nebraska Healthy Families and Workplaces Act remains to be seen. Final paycheck The NWPCA requires most employers to pay a sepa - rated employee all wages owed on the earlier of: (i) the next regular payday; or (ii) two weeks from the date of

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