Nebraska Termination Laws

October 1st 2024

Termination laws in Nebraska can be complicated, and both employers and employees need to understand their legal rights and obligations. A clear understanding of these regulations helps prevent legal issues, protect rights, and ensure the termination process is handled fairly for all parties involved.

This guide simplifies Nebraska’s termination laws by outlining everything you need to know to confidently approach the termination process.

This Guide Covers

Legal Considerations for Termination in Nebraska
At-Will Employment in Nebraska
Lawful Termination in Nebraska
Legal Protections During Termination in Nebraska
Terminated Employee Benefits in Nebraska
Layoffs in Nebraska
Resignations in Nebraska
Legal Cases Related to Wrongful Termination in Nebraska

Legal Considerations for Termination in Nebraska

Employers must carefully analyze all applicable laws before discharging an employee in Nebraska to make sure the termination is legal. Some factors to take into account before firing include:

  • Discrimination Laws: Employers in Nebraska cannot terminate employees based on protected characteristics such as race, color, national origin, sex, pregnancy, religion, age, disability, or marital status. Companies that terminate employees based on these factors can face discrimination claims under federal laws such as Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act (ADEA), the Americans with Disabilities Act (ADA), and their state equivalent, the Nebraska Fair Employment Practice Act (NFEPA).
  • Retaliation Protections: Nebraska law prohibits employers from terminating employees in retaliation for engaging in protected activities, such as filing a discrimination complaint, participating in an investigation, or exercising their legal rights. The NFEPA law protects employees from retaliatory actions when they oppose unlawful practices or participate in legal proceedings.
  • Final Wages: Nebraska law requires employers to pay all final wages to an employee by the next regular payday or within two weeks of the separation date, whichever comes first. This applies whether the employee quits or is terminated. Employers must pay all hours worked, accrued vacation, and other earned compensation in the final wages. They cannot withhold pay, even if the employee hasn’t returned company property.
  • Employee Contracts and Agreements: Employers should carefully review employment contracts and collective bargaining agreements to meet all termination procedures and contractual obligations.
  • Documentation: Employers in Nebraska should keep thorough records detailing the reasons for termination, any disciplinary actions taken beforehand, and all communications with the employee related to the termination. These records are crucial for defending against potential legal claims.

At-Will Employment in Nebraska

What is At-Will Employment?

At-will employment is a legal doctrine that allows either the employer or the employee to terminate the employment relationship at any time, with or without cause, and without prior notice. This means that an employer can discharge an employee for any reason or no reason, and an employee can leave their job for any reason without legal repercussions.

Nebraska follows the at-will doctrine, allowing flexibility in the employer-employee relationship. However, employers must evaluate the legal exceptions and protections to prevent abuse and maintain fairness in the workplace.

What are the Exceptions to At-Will Employment in Nebraska?

While employment in Nebraska is generally at-will, there are several exceptions to this principle:

  • Retaliation Exception: Nebraska law bans employers from terminating employees in retaliation for engaging in protected activities. Under the Nebraska Fair Employment Practice Act (NFEPA), it is illegal for employers to terminate an employee for filing a discrimination complaint, participating in an investigation, or opposing unlawful practices. This includes refusing to carry out actions that violate state or federal laws. If an employer fires an employee for asserting their rights, the employee may have a valid claim for wrongful termination based on retaliation.
  • Implied Contract Exception: In Nebraska, an implied contract is created if an employer’s policies or handbook state specific reasons for firing employees. If the employer violates this agreement, the employee can file a wrongful termination claim and seek compensation for lost wages, emotional distress, or other benefits.

Employment Under Contract in Nebraska

In Nebraska, specific employment contracts must be in writing to be legally valid. Nebraska Revised Statute 36-202 requires the responsible party to document and sign any agreement that is longer than one year. This requirement ensures that long-term agreements, such as employment contracts specifying a set duration or particular conditions for termination, are legally enforceable. These written agreements help clarify the terms of employment, providing clear documentation for both parties in case of a dispute.

However, Nebraska also allows oral agreements for employment that can be completed within one year.  In these cases, the law recognizes oral contracts as valid, but enforcing them in court becomes more challenging if disputes arise. While oral contracts are permitted for shorter or indefinite employment arrangements, employers and employees generally prefer written contracts for their clarity and reliability.

Lawful Termination in Nebraska

Legal Grounds for Termination in Nebraska

Even if a termination seems unfair, it doesn’t automatically mean it is wrongful under Nebraska law. In Nebraska, legal reasons for termination include:

  • Misconduct: Nebraska law, specifically Nebraska Revised Statute 48-628.10, defines misconduct as behavior that can disqualify an employee from receiving unemployment benefits if terminated for such reasons. Employees who willfully disregard the employer’s interests, deliberately violate workplace rules, or neglect duties substantially can be terminated for misconduct. Besides, being under the influence of drugs or alcohol at work without a valid prescription is also considered misconduct.
  • Performance Issues:  In Nebraska, like in many other states, consistent failure to meet performance standards or productivity goals may serve as grounds for termination. Employers are typically expected to provide feedback and opportunities for improvement before resorting to dismissal. If an employee continues underperforming despite these interventions, termination is considered justified. 
  • Failure to Pass Drug Test: Employers in Nebraska can legally require drug tests and terminate employees for failing them. According to Nebraska Revised Statutes Section 48-628.10, being under the influence of drugs or alcohol at work without a valid prescription constitutes misconduct, which can lead to termination.

How Do I File a Wrongful Termination Claim in Nebraska?

If an employee in Nebraska has been wrongfully terminated, they may file a claim under specific laws that address discrimination and retaliation. The Nebraska Fair Employment Practice Act (NFEPA) is the primary law that protects employees from being terminated due to discrimination. 

Employees have 300 days from the date of termination to file a complaint with the Nebraska Equal Opportunity Commission (NEOC) or the Equal Employment Opportunity Commission (EEOC) if federal law applies.

For employees over the age of 40, the Nebraska Age Discrimination in Employment Act provides additional protection, making it unlawful to terminate someone due to their age. Employees must file retaliation claims related to age discrimination within 300 days.

Employees can file a wrongful termination claim under the Nebraska Equal Pay Act if they believe their termination was based on their sex or in retaliation for asserting their right to equal pay. They have four years from the date of harm to file a claim under this act. Also, they must file wrongful termination claims within the relevant timeframe to ensure proper review and processing.

Discover more about firing employees in Nebraska by exploring our comprehensive guide.

Legal Protections During Termination in Nebraska

Federal and state laws in Nebraska protect employees during the termination process. These safeguards ensure employers handle terminations fairly and lawfully.

  • Nebraska Fair Employment Practice Act: The Nebraska Fair Employment Practice Act (NFEPA) is a state law that prohibits discrimination based on protected characteristics such as race, color, religion, sex, disability, age, marital status, or national origin, including in termination decisions. Under this law, employers cannot terminate employees based on these characteristics and must instead base termination decisions on legitimate business reasons.
  • Nebraska Wage Payment and Collection Act: The Nebraska Wage Payment and Collection Act (NWPCA) is a state law that requires employers to promptly pay all wages owed to an employee upon termination, including any accrued vacation or PTO time. Employers must meet this obligation within a specified timeframe, and failure to comply may result in penalties.
  • Nebraska Workers’ Compensation Act: While not directly regulating termination itself, the state Nebraska Workers’ Compensation Act protects employees who are injured on the job. Nebraska law prohibits employers from terminating employees in retaliation for filing workers’ compensation claims or exercising their rights under the act.
  • Title VII of the Civil Rights Act 1964: The federal Title VII of the Civil Rights Act outlaws employment discrimination on the basis of race, color, religion, sex, and national origin. It applies to employers with 15 or more employees and includes protections against discriminatory termination.
  • Age Discrimination in Employment Act: The federal Age Discrimination in Employment Act (ADEA) forbids employers from discharging employees based on age, particularly protecting those 40 years and older. This law applies to employers with 20 or more employees, including private employers, state and local governments, employment agencies, and labor organizations.
  • Americans with Disabilities Act: Also federal, the Americans with Disabilities Act (ADA) prohibits discrimination against qualified individuals with disabilities in all aspects of employment, including termination. This law covers employers with 15 or more employees. 

Terminated Employee Benefits in Nebraska

After an employer fires an employee in Nebraska, the employee might qualify for various benefits under state and federal regulations. These benefits provide monetary assistance and other support during the adjustment period after termination.

  • Unemployment Benefits: Terminated employees may qualify for unemployment benefits in Nebraska if they meet specific eligibility criteria. This includes being unemployed through no fault of their own, actively seeking work, and being able to accept new employment. They must also meet the minimum earnings requirement, which for 2024 is $5,139, with at least $1,850 earned in one quarter and $800 in another. Employers must promptly and accurately inform the Nebraska Department of Labor regarding the employee’s separation.
  • Final Pay and Accrued Benefits: Nebraska law requires employers to issue a final paycheck by the next regular payday or within two weeks of termination, whichever is sooner. This payment must include all earned wages and any accrued but unused vacation time if specified in company policy or employment agreements. Employers risk legal action and penalties if they fail to comply with the Nebraska Wage Payment and Collection Act (NWPCA).
  • COBRA Benefits: Employees working for an employer with more than 20 employees may qualify for continued health coverage through the Consolidated Omnibus Budget Reconciliation Act (COBRA) for up to 18 months after termination. Yet, under COBRA, employees are responsible for the total premium cost plus an administrative fee. The former employer’s HR department can provide details on premium costs and administrative fees.
  • Mini-COBRA: For employees working for companies with 20 or fewer employees, Nebraska’s Mini-COBRA law provides the option to continue health insurance coverage for up to 6 months. Mini-COBRA applies to those who are involuntarily terminated for reasons other than misconduct. Employees must pay the full premium and a 2% administrative fee. It’s important to keep up with premium payments, as failure to do so will result in the loss of coverage.

Layoffs in Nebraska

Layoffs happen when an employer reduces its workforce, either temporarily or permanently, due to external factors such as economic downturns, restructuring, or technological changes. In Nebraska, employers must adhere to both federal and state laws that govern the layoff process, including those related to providing notice, severance pay, and benefits continuation.

One federal law relevant to layoffs is the Worker Adjustment and Retraining Notification (WARN) Act, which requires employers with 100 or more employees to give 60 days’ advance notice of mass layoffs or plant closures. 

Nebraska also has several support programs to assist laid-off employees, including:

  • Rapid Response: This program helps workers quickly reestablish employment after a layoff. The Nebraska Department of Labor works with employers to connect workers to resources such as resume preparation, interview coaching, and unemployment insurance. 
  • Trade Adjustment Assistance (TAA): This program supports workers who lose their jobs due to U.S. foreign trade activities, such as increased imports or company operations moving overseas. TAA assists in retraining, education, and job placement.
  • Dislocated Worker Program: This program helps laid-off workers overcome barriers to reemployment by providing individualized support and helping them secure new jobs in high-demand industries.

Employers and workers should contact the Nebraska Department of Labor for more information on these programs.

Resignations in Nebraska

Resignations happen when an employee decides to end their employment for various reasons, such as finding new opportunities or dealing with personal circumstances. While employers are not required to provide severance pay or benefits unless it’s a part of a contract, it is common for them to handle the process professionally, sometimes conducting exit interviews to gather feedback.

Voluntary Resignations

A voluntary resignation occurs when an employee intentionally leaves their position without any external pressure. Employees may resign to pursue another job, attend school, or for other personal reasons.

Involuntary Resignations

If an employee resigns after being informed that termination is imminent, Nebraska law treats this as an involuntary resignation. In these cases, the resignation is not considered voluntary, and the employee may still qualify for unemployment benefits.

Furthermore, suppose an employer changes the terms of employment, such as reducing rank or altering duties. In that case, an employee may feel forced to quit under intolerable conditions, known as constructive discharge. In these situations, Nebraska courts may rule that the employee’s resignation was involuntary, allowing them to claim unemployment benefits under the Nebraska Employment Security Law.

Legal Cases Related to Wrongful Termination in Nebraska

1. Omaha Public Works Employee Awarded $175,000 in Constructive Discharge Case

In Traci Shelby v. City of Omaha, Shelby,a part-time Omaha Public Works Department employee, filed a lawsuit alleging sexual harassment, discrimination, and constructive discharge. 

Shelby worked from April 2012 to May 2013, during which time she experienced a hostile work environment marked by inappropriate comments about her body and exposure to explicit material. Despite reporting these incidents to supervisors, the harassment continued, leading Shelby to resign. She claimed she was forced to leave due to the unbearable working conditions, a legal concept known as constructive discharge.

Shelby’s lawsuit was filed under Title VII of the Civil Rights Act of 1964 and the Nebraska Fair Employment Practices Act (NFEPA), citing sexual harassment, discrimination, and retaliation. She argued that the City of Omaha failed to address her complaints and instead retaliated by delaying her raise and assigning her unfavorable tasks. After multiple ignored complaints, Shelby’s resignation was seen as involuntary under the constructive discharge doctrine.

Shelby eventually settled the case, receiving $106,000 in compensation and $69,000 in attorney fees, totaling $175,000.

Key lessons learned from the case:

  • Failing to address complaints of harassment can escalate to costly legal consequences.
  • Employers must take immediate and effective action when harassment claims arise to avoid constructive discharge claims.
  • Unfair treatment following a complaint, which constitutes retaliation, compounds the employer’s liability in discrimination cases.

2. Haven Manor Settles for $10,000 Over Hiring Dismissal of Qualified Applicant

In EEOC v. Haven Manor, the U.S. Equal Employment Opportunity Commission (EEOC) filed a lawsuit against Haven Manor, an assisted living facility in Lincoln, Nebraska, for violating the Americans with Disabilities Act (ADA). 

Haven Manor refused to hire Amanda Huff, a certified nursing assistant with a hearing impairment due to her disability. The Nebraska Equal Opportunity Commission initially investigated Huff’s complaint, and the EEOC subsequently took legal action.

Amanda Huff received $10,000 as part of the settlement, and Haven Manor implemented measures to ensure ADA compliance. These measures included mandatory training for management and supervisory staff on disability discrimination and reasonable accommodations. Additionally, the company agreed to provide the EEOC with reports on requests for reasonable accommodation over the next three years.

Key lessons learned from the case:

  • Employers who terminate or refuse to hire someone based on a disability directly violate the ADA, which leads to legal consequences.
  • Employers must ensure their hiring and termination practices comply with disability discrimination laws, including providing reasonable accommodations.
  • Failing to provide accommodations for disabled employees or job applicants can lead to significant financial settlements and increased oversight from regulatory bodies

Learn more about Nebraska Labor Laws in our in-depth guide.

Important Cautionary Note

This content is provided for informational purposes only. While we make every effort to ensure the accuracy of the information presented, we cannot guarantee that it is free of errors or omissions. Users are advised to independently verify any critical information and should not solely rely on the content provided.

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