Two major labor law changes have occurred recently that employers should be aware of. The first involves the Department of Labor's proposed increase in the salary threshold for overtime pay, which was overturned by a U.S. District Court ruling. The second is Nebraska's passage of Initiative 436, mandating paid sick leave for employees effective October 1, 2025. Please note that information on these changes will continue to evolve, and we will provide updates as new information emerges. Here's what these changes mean for employers and employees alike. 

Overturning of the Department of Labor's Exempt Salary Threshold 

On November 15, 2024, the U.S. District Court for the Eastern District of Texas invalidated the Department of Labor's proposed increase in the salary threshold for overtime exemptions. As a result, the salary thresholds for the Executive, Administrative, and Professional (EAP) and Highly Compensated Employee (HCE) exemptions remain unchanged. 

Employers who had planned for these changes should take note of the following key details: 

• The salary threshold for the EAP exemption remains at $35,568.
• Employers no longer need to raise employees’ salaries to $58,656 for EAP exemption eligibility. 
• The salary threshold for the HCE exemption remains at $107,432. 

Passing of Initiative 436: The Nebraska Healthy Families and Workplace Act (HFWA) 

On November 5, 2024, Nebraskans voted to pass Initiative 436, which will enact the Nebraska Healthy Families and Workplaces Act effective October 1, 2025.  

This new law requires employers to provide paid sick leave based on the size of their workforce: 

• Employers with fewer than 20 employees must provide at least 40 hours of sick leave per year.
• Employers with 20 or more employees must provide at least 56 hours of sick leave per year. 

The NE Department of Labor is expected to issue more guidance in the coming months. We will continue to provide updates as more information becomes available.  

Stay Ahead of HR Compliance with Lutz 

These changes in labor laws emphasize the importance of staying up-to-date with evolving regulations to ensure compliance. At Lutz, we understand that navigating complex legal requirements can be challenging, especially for businesses focused on growth. Our Outsourced HR services provide the expertise and guidance to manage these shifts with confidence. If you’re looking for support in managing these changes or any other HR needs, please contact us, we’re here to help.