Several bills introduced in the Nebraska Legislature aim to amend the medical marijuana and paid sick time laws approved by voters in November 2024. While these changes are not final, employers should keep an eye on these bills as they progress.

Medical Marijuana

Nebraska voters approved ballot initiatives to enact the Medical Cannabis Patient Protection Act and the Medical Cannabis Regulation Act (the “Cannabis Acts”). Three bills currently under review would significantly build out these laws, as they are currently lacking detail in many areas relevant to their implementation. Here are the key points for employers:

Drug-Free Workplace Policies

• LB 651 and LB 677: Clarifies that employers could still enforce drug-free workplace policies and conduct drug testing. Employers could still take adverse employment action against employees who use or are under the influence of marijuana at work, as well as employees or applicants who simply fail a drug test by testing positive for marijuana.
• LB 705: Does not directly address drug-free workplace policies but implies that employers cannot take adverse employment action against an employee based solely on a positive drug test.

Accommodating Marijuana Use

• LB 651 and LB 677: Would not require employers to accommodate marijuana use, whether at work or otherwise. In other words, employers could still prohibit the use of marijuana by employees, even outside of working hours and off the employer’s premises, regardless of whether such employee is a qualified patient.
• LB 705: Would require employers to make reasonable accommodations for qualified patients, such as flexible work schedules for treatment. It also prohibits discrimination against qualified patients or caregivers in hiring, firing, or other employment decisions. However, this protection would not apply if marijuana use occurs during work hours or impairs job performance or safety.

The term “qualified patient” would be defined by all three bills to include only those individuals who have been enrolled in a government-controlled registry program. Evidence of an individual’s qualified patient status would be in the form of a registry card. It is currently unclear whether an employer would be able seek confirmation of a registry card’s validity.

Marijuana at the Workplace

• LB 651 and LB 677: Employers could prohibit or restrict medical marijuana possession or use on their property by any person, employee or not.
• LB 705: States that the Cannabis Acts do not allow smoking or vaporizing marijuana at a place of employment, but it does not restrict possession or other forms of use, and it does not allow for broad prohibitions or restrictions like the other bills.

Paid Sick Time

The Nebraska Healthy Families and Workplaces Act, requiring employer-provided paid sick time for employees, was overwhelmingly approved by voters, but some questions remain. Two bills currently under review propose various changes. Here are the key points for employers:

Payout on Termination

• LB 415: Clarifies that employers would not be required to pay out unused paid sick time on termination. If unused paid sick time is not paid out, employees are still entitled to reinstatement of previously accrued paid sick time if rehired within 12 months.

Employee Eligibility for Paid Sick Time

• LB 415: Clarifies that employees would be entitled to accrue paid sick time after 80 hours of consecutive employment. For part-time employees with unpredictable hours, such as employees who are only called in when staffing levels are critically low, additional clarification may be needed. For example, it is unclear if an employee who works at least 80 hours in Year 1 would be entitled to accrue paid sick time in Year 2, when there is a likelihood that the employee will not work at least 80 hours in Year 2.
• LB 698: Would exempt temporary/seasonal agricultural employees, as well as employees under 16 years of age, from the Act’s coverage. It would also raise the employee threshold from 1 to 11, meaning employers with 10 or fewer employees would not be required to provide paid sick time to employees.

Credit for Leave Already Provided

• LB 415: Would allow employers to count any Act-compliant paid leave that was provided between January 1 and October 1 (the Act’s effective date) towards the Act’s minimum accrual requirements. In other words, employees would not be entitled to accrue additional paid leave on October 1 if their employer has already provided paid leave in 2025 that meets the Act’s requirements.

Example: Under an employer’s current PTO policy, all full-time employees accrue PTO at a rate of 0.04 per hour worked, capped at 56 hours of PTO. Full-time employees begin accruing PTO after completing 3 months of employment. Employees who are not full-time do not accrue PTO. Under the policy, PTO can be used for all types of personal leave, including the reasons required by the Act, and the policy otherwise complies with the Act’s requirements regarding prior notice and documentation. The policy operates on a calendar year basis.

Under the employer’s policy, the average full-time employee working year-round will have reached the accrual cap of 56 hours by October 1. In this example, the employer would not need to provide those full-time employees with any additional PTO in 2025 because the employer has already provided Act-compliant leave for the year. Even if a full-time employee had not reached the 56-hour cap by October 1, the policy’s PTO accrual rate exceeds the Act’s minimum requirement of 1 hour for every 30 hours worked (0.033 per hour worked), so the employee would not be entitled to anything other than the continued accrual of PTO under the existing policy.

Note: A new full-time employee hired, for example, on September 1, 2025, would need to start accruing PTO on October 1, rather than on December 1 which is when the policy’s 3-month waiting period would end. Alternatively, the employer could implement a sick leave-only policy for new hires, and switch those employees over to the PTO policy after 3 months of employment. Further, any part-time employees who have worked at least 80 hours in 2025 would need to start accruing paid sick time on October 1, either by revising the PTO policy to include part-time employees, or by implementing a sick leave-only policy.

Other Proposed Changes

• LB 698: Would eliminate employees’ private right of action, so employees would not be able to sue their employers for violations of the Act. The Act’s enforcement would be left entirely to the Nebraska Department of Labor.

What’s Next?

LBs 651, 677, and 705, relating to medical marijuana, have been scheduled for a public hearing with the General Affairs Committee on March 3 at 1:30 PM.

LBs 415 and 698, relating to paid sick time, are also still in the committee stage. The Business and Labor Committee held a public hearing for LB 698 on February 3, and LB 415 on February 24.

It is anticipated that these bills, especially those dealing with the Cannabis Acts, will be subject to a lengthy debate and amendment process before being submitted to the full Legislature for a vote. Thus, there is no clear timeline for when we will know what the final legislation on either front will look like. Employers should be aware that the paid sick time requirements will still go into effect on October 1, 2025, even if no additional legislation is passed.

As we await final legislation, Koley Jessen’s Employment, Labor, and Benefits practice group will continue to monitor these bills as they progress through the legislative process. Please do not hesitate to contact a member of our team should you have any questions about how these changes might affect your business.

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