Hiring Your First Employees in Lincoln: Rules and Local Help

The Nebraska registrations, wage and paid sick time rules, insurance and posters to handle before your first hire in Lincoln, plus local workforce help.

LNK Biz · Last reviewed October 23, 2026 · 5 min read

Hiring your first employee changes your business. You take on payroll taxes, insurance and posting duties, and you gain access to public hiring help that many small employers never use. In Lincoln, most of the employer rules come from the State of Nebraska and the federal government, while local job centers and programs can help you find and train people.

This guide summarizes what official sources say an employer needs to handle. It is general information, not legal or tax advice. Employment law has changed recently in Nebraska, so check the current guidance from each agency, and talk to a qualified professional about your situation.

Before the first paycheck: withholding

Start with a federal Employer Identification Number from the IRS. The Nebraska Department of Revenue says a company registering for Nebraska income tax withholding must provide its EIN, and that registration is required if you will have employees. You can register online or with the Nebraska Tax Application, Form 20. The department publishes Nebraska Circular EN with the income tax withholding tables.

Unemployment insurance: register with the Department of Labor

The Nebraska Department of Labor's unemployment tax fact sheet says an employer is required to complete the Unemployment Insurance Tax Application, and then explains when the tax is owed. For most businesses, you are liable if either of these applies:

You paid total gross wages of $1,500 or more to all workers in a calendar quarter, or
You had one or more people working for some portion of a day in 20 different weeks in a calendar year.

Different thresholds apply to agricultural employers, household employers and 501(c)(3) nonprofits. Registration is completed online through NEworks.

The fact sheet also explains when a worker counts as contract labor rather than an employee for unemployment purposes. All three parts of a test must be met: the person is free from your control or direction, the work is outside your usual course of business or done outside all your places of business, and the person is customarily engaged in an independently established trade or business. If you plan to rely on contractors, read that test carefully.

Workers' compensation insurance

The Nebraska Workers' Compensation Court says "Most Nebraska employers are required to have workers' compensation insurance." The Act does not apply to independent contractors.

There are only a few ways to comply. Most small employers buy a policy from a private insurer licensed in Nebraska. The court notes that Nebraska has no state fund. For employers that can't find coverage in the regular market, the Nebraska Workers Compensation Insurance Plan provides it. You don't file proof with the court yourself; the insurer notifies the court when you buy a policy.

Minimum wage and paid sick time

The Nebraska Department of Labor lists a $15 minimum wage effective January 1, 2026. Check the department's labor standards page for any later changes.

Paid sick time is newer. The Nebraska Healthy Families and Workplaces Act took effect October 1, 2025. According to the department's FAQ:

The Act applies to employers with 11 or more employees.
Employers with 11 to 19 employees must allow accrual of at least 40 hours of paid sick time a year; employers with 20 or more must allow at least 56 hours.
Employees accrue 1 hour for every 30 hours worked and begin accruing after 80 hours of consecutive employment.
Unused time carries over, though employers need not allow use beyond the yearly maximum, and an existing paid leave policy may already satisfy the Act.
Each pay period, employees must receive a statement of sick time available, taken and paid; an online system can satisfy this.
Employers must give written notice and display a poster.

The FAQ itself notes that pending legislation may affect its answers, so check it again before writing your policy.

Posters and other compliance basics

The Department of Labor lists state posters that must be displayed where all employees can see them: paid sick time, Nebraska minimum wage, the state anti-discrimination notice, and the unemployment insurance benefit rights notice. It directs employers to the U.S. Department of Labor for federal posters, noting that requirements vary by business.

The department's labor standards pages also cover employment of minors, wage complaints and enforcement of the Employee Classification Act. Its business page also lists on-site safety consultations.

Local help finding and training workers

Lincoln employers have several public resources:

Job centers: the Department of Labor lists a job center in Lincoln among its locations, offering recruitment and hiring tools, help posting hiring events and training programs.
American Job Center: the City of Lincoln's business page lists an American Job Center serving Lancaster and Saunders counties.
Tax credits: the department lists hiring tax credits among its job center services, and its employer resources include the Work Opportunity Tax Credit (WOTC).
On-the-job training: the department contracts with eligible employers to train workers affected by a layoff. There is no sign-up fee, and employers must provide workers' compensation and be current on unemployment tax.
Registered apprenticeships: the department lists registered apprenticeships among its training programs for employers.
Talent programs: the Lincoln Partnership for Economic Development lists talent initiatives such as EmployLNK and CampusLNK.

A first-hire checklist

Get an EIN and register for Nebraska withholding.
Register for unemployment insurance tax through NEworks.
Buy workers' compensation coverage before the first day of work.
Apply the contract labor test before treating any worker as a contractor.
Confirm the current minimum wage and whether the paid sick time Act applies to you.
Hang the required state and federal posters.
Ask a local job center about WOTC, on-the-job training or apprenticeships.

Key takeaways

Withholding, unemployment insurance and workers' compensation are the core first-hire obligations.
Unemployment tax liability for most businesses starts at $1,500 in quarterly wages or 20 weeks with a worker.
Nebraska's minimum wage is $15 as of January 1, 2026.
Paid sick time applies to employers with 11 or more employees, with 40 or 56 hours of accrual depending on size.
Lincoln's job centers can help with recruiting, tax credits and training.

Sources

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